The stock market is up 51% from its March 9 lows. The leading economic indicators have turned sharply positive, showing gains for each of the last four months. Manufacturing is on the rebound. And banks are promising to pay record bonuses, as their earnings have rebounded.
The Economist magazine, in a column wryly titled “Pangloss Revisited”, notes that “The average deficit over the next decade in now expect to be 5.1% of GDP, compared with an average of 4% in the original budget”, and that even in the last year of the forecast, 2019, the budget deficit is supposed to be 5% of GDP! Wow!
Currencies rally in early morning Tuesday. But see profit taking later in the day… Looking for yield? China expected to get back to 10% growth! And Now… Today’s Pfennig!
Here’s a small victory, worthy of breaking out some Andre Brut: The U.S. government budget deficit is more likely to ring in at $1.58 trillion this year, not the $1.84 trillion the Obama administration reported in May.
It’s official: Our government ran a record $180.7 billion over budget in July, the Treasury Department said today. That’s just a bit over Wall Street expectations and just under the Congressional Budget Office estimate we reported Monday. Thus the government tab so far this fiscal year is a record $1.27 trillion, not the record $1.3 trillion the CBO guessed earlier this week. Phew… what a relief.
Government budget hits all-time insanity… record monthly, year-to-date deficits… “Cash for clunkers” helps GM, but not economy… July retail sales stage surprise fall… Fed plans exit strategy, ends bond buys… why the FOMC is still not helping you… Byron King’s crude reality: How Canada could be the next Saudi Arabia…
Currencies trade in a tight range…Soapbox talk…QE talk…FOMC Day. And Now… Today’s Pfennig!
Currencies adrift all day yesterday…Data prints begin today with Productivity…Stop to think! Chinese data is impressive…And Now… Today’s Pfennig!
The tragic story the media missed… the biggest deficit in the history of money… Dollar weakens, yet euro stands still… Bill Jenkins on the true valuation of these monies.. . Bill Bonner on Congress’ latest “eat the rich” legislation… Our tech adviser shows a powerful example of a coming computing breakthrough
Since the Obama administration took office in January, we’ve seen hundreds of billions pumped into the economy and the U.S. budget deficit now forecast to top the one trillion-dollar mark in the coming years. Many believe it’s only a matter of time before we also see much higher inflation – perhaps even hyper-inflation.