economic analysis

Massive U.S. Debt ($57k+ a Person) Will Force Interest Rates Higher

By Friday, February 27, 2015

Interest rates will riseThis week, the “official” U.S. national debt hit $18.12 trillion. That’s a debt of about $57,000 for each American citizen, regardless if you are a child, adult, or senior! And factors like defaulting student debt and higher interest payments will only push our debt much higher.
Consider this: at the turn of the century (in 2000), the U.S. national debt stood at $5.7 trillion. (Source: Treasury Direct, last accessed February… Read More

What Happens If Greece Exits the Eurozone?

By Thursday, February 26, 2015

Greece Exits the EurozoneGreece’s Anti-Austerity Platform Reimagined… Read More
What happens if Greece exits the eurozone? We’ll have to wait until the end of June to find out. Or at least be subject to four more months of pundits explaining what could happen.
That’s because Greece’s creditors, the “Troika” (the European Central Bank, the European Commission, and the International Monetary Fund), agreed to a four-month extension on Friday, February 20. With an extension until the

The “Grexit” Explained: What’s Behind Greece’s Possible Eurozone Exit

By Tuesday, February 24, 2015

Greece Stock MarketWhat to Know About Greece’s Potential Eurozone Exit (or “Grexit”)
Is anything more gripping right now than wondering how close Germany will let Greece get to the precipice before a crisis is averted at the last second?
Greece’s six-year recession came to a quiet end at the start of 2014. Since then, its recovery has been anemic. In 2014, the country’s economy expanded by 0.7%. It might gain traction this… Read More

The Greece Debt Crisis: Back in Four Short Months

By Monday, February 23, 2015

Greek Debt CrisisThis past Friday, we got news of Greece’s debt extension. The headline at the Financial Post said it all: “Greece and its EU paymasters reach accord to keep bailout funds flowing for four months.” (Source: Financial Post… Read More, February 20, 2014.)
With the news, the Dow Jones Industrial Average, which spent most of the day flat, jumped 157 points to a new record closing of 18,140. Yes, the Dow Jones

Economic Collapse Headed for U.S. in 2015

By Sunday, February 1, 2015

U.S. Economic Collapse 2015The last thing Wall Street is thinking about is an economic collapse in 2015… Read More. After all, the stock markets are at record highs, unemployment is down, and inflation is in check. But the fact of the matter is that these same indicators were also in check before the markets crashed in 1987, 2000, and 2008/09.
Back in 2008/09, everyone on Wall Street, save for Michael Lombardi and Peter Schiff,

Japan’s Debt Hits 245% of GDP…Why We’re Headed There Too

By Friday, December 5, 2014

Japan DebtMoody’s Investor Service has downgraded the debt of Japan—the third-biggest economy in the world.
The credit rating agency has provided three reasons for this downgrade: uncertainty over Japan’s ability to cut its deficit; uncertainty over the effectiveness of government growth policies; and the risk of yields on Japanese government bonds rising. (Source: Moody’s Investor Service, December 1, 2014.)
Digging a bit deeper…
According to the International Monetary Fund (IMF), Japan’s… Read More

U.S. Dollar Collapse May Happen Any Day Now, Warren Buffett is Preparing For It

By Tuesday, October 1, 2013

Some of the biggest names in investing publicly stated months ago that the U.S. dollar would fall hard against other world currencies. Big investors, like Warren Buffett, have actually made investment bets the dollar would fall. Why hasn’t it happened?
Patience, my dear reader, patience. The financial markets rarely do what they are expected to do. And, in a case like this, when so many have proclaimed their belief in… Read More

Why U.S. GDP Contracted for First Time in 3.5 Years

By Monday, February 4, 2013

U.S. GDP Contracted for First Time in 3.5 Years(Make sure to read my important comments today about the stock market in “Where the Market Stands; Where it’s Headed”Read Morebelow.)
The U.S. economy, as measured by gross domestic product (GDP), contracted in the fourth quarter of 2012 for the first time in three and a half years. According to the Bureau of Economic Analysis, U.S. GDP “unexpectedly” declined 0.1% in the fourth quarter of 2012 from the third quarter.

Auto Sector Growth Slows in
China, but Market Still Massive

By Thursday, June 28, 2012

China’s Auto SectorThe key to China’s economic progress will be the rapid growth of the country’s middle class. In a research finding, Credit Suisse predicted that the household wealth in the country will double to $35.0 trillion by around 2015, based on achieving sustainable GDP growth at or near the current growth rate.
The economic analysis is simple; the extra renminbi mean more cash to spend on non-essential goods and services. This… Read More

Headed Towards the Fifth Straight
Year of Trillion-dollar Deficits

By Friday, March 23, 2012

Trillion-dollar DeficitsAs it stands, on January 1, 2013, tax benefits to consumers and businesses and government spending increases—which includes extended unemployment benefits—are set to expire.
These incentives that helped the economy “rebound” from the crisis add up to roughly $433 billion or approximately 2.9% of GDP (source: Bloomberg).
For the first quarter of 2012, Lombardi Financial believes that U.S. GDP growth is likely to come in well under two percent. For… Read More

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