Tag Archives: US Economy

American Economy on a tight rope

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I would like to emphasize that the horizon in the American economy and in the markets is becoming increasingly dark.

Submitted by Karderinis Isidoros

America is today at the most critical point in its modern history. It is threatened with a collapse which, if it happens, will drag most of the world down.

The U.S. debt has now, amid high inflation, rising interest rates—most economic analysts expect the U.S. central bank to continue raising rates—and growing economic uncertainty in September 2023, topped $33 trillion and amounts to 124% of GDP. And the deficit of the general government – which is the federal and local government together – is over 7% of GDP. This level of debt is more than three times the level of debt in 2008 ($10 trillion) and 10 times the level in 1990 ($3.2 trillion). US debt levels have ballooned significantly in recent years, especially after a 50% increase in federal spending between fiscal years 2019–2021, according to data from the US Treasury Department.

This stark reality resulted in the House and Senate passing necessary legislation in early June 2023 that raised the ceiling on federal borrowing while imposing some limits on spending.

This, of course, was done in order to prevent a catastrophic bankruptcy of the government, i.e., the scenario of the country declaring default, unable to pay its creditors and pay salaries and pensions, which would obviously have a catalytic negative impact on international markets, as well as in the American and global economy, given the size of the American debt.

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This Is Why There Are No Jobs in America

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Submitted by Moneybrain

US Employment Data

This is why the US is sunk, they have betrayed their heritage of being the “land of the free” and business central. This is especially stupid with China and India rising, both massive populations with ENTREPRENEURIAL Genes represented in their DNA! The US has very high Corp Tax of 35%, which BIGCOS don’t pay by registering their HO in Ireland et al.

Topping things off is an Immigration Policy where they educate Chinese, Indians et al in key areas of Computing, Science, Engineering etc (to Masters/ Doctorate level) and then instead of giving them a Green Card on graduation, allow them to slip out of their grasp, when they need about 250k such immigrants per year for jobs that are going UNFILLED. Brilliant eh? Naturally the education of the majority in the US is very sub par. The corruption in Washington guarantees that the US slips dramatically as it did in Greece , Rome etc:

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Is It Time To Sell Your Ass?

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The uncertainty which has engulfed global economies, especially the USA, continues to provoke anxiety among Barbadians. The USA is acknowledged as the world’s largest economy and this makes Barbados most vulnerable given the Barbados dollar peg to the US dollar and its importance as a source market for tourists, remittances and foreign direct investment. There is so much commentary about the prescriptions required to stabilize the local economy it must be difficult for the regular man to understand it all.

In the USA there is the startling statistic that the gap between the über rich and everyone else is growing or as former “President George W. Bush once quipped at a swanky campaign dinner, “the haves and the have-mores.”  In a nutshell while 90% of Americans have had to endure flat incomes over the last 10 years, the top 10 percent or the super-rich have suffered no such problem. Here is what a CNN report revealed: In 2009, the richest 10% of Americans accounted for about half the nation’s wealth. Narrow that focus a bit further, and the trend is even more alarming. The top 0.1% — those who make at least $2 million each year — controlled 10% of the economy. This is a nasty revelation.

It is important to shatter a myth which many Barbadians and others have about the economic sustainability of the US lifestyle model which is built on consumption behaviour. The middleclass in the USA for example owes a great debt of gratitude to easy access to credit which readily feeds its insatiable desire for consumer durables. The  adjunct to the argument has been the fickle architecture of the US housing market which the current recession has decimated and exposed the DDD -/+  personal financial positions which before the recession were masquerading as BBB-/+ and upwards.

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