Both parties are happy with the spending deal reached Tuesday night between the Trump administration and the Pelosi-controlled House. The Trump administration will see defense spending going to $750 billion while the Dems (and, admittedly, some in the GOP) will see an equivalent increase in domestic appropriations.
From 1870 to 1970, the ratio of debt to GDP in the US averaged 1.48. Today, the ratio is 3.47, which means that the economy bears the weight of three times the debt that it did up until 1970. Not coincidentally, it was August 15, 1971 that the President Nixon made the dollar no longer
It’s crazy enough when government debt sells at negative yields. But there are 14 junk bond issues in the eurozone trading at subzero rates.
By many measures, the world’s economy is slowing, and some CBs — namely New Zealand, India, Malaysia, and the Philippines — have already lowered rates. Australia lowered June 4, the largest developed country to cut rates this year. In May, China lowered reserve requirements for small- and medium-sized banks, which pushed interest rates there to
In this clip, billionaire investor Paul Tudor Jones talks about gold being the investment for the next 12 to 24 months. In fact, he states that gold “has everything going for it.” A few days later, Bloomberg reported that Tudor pulled the trigger on an $82 million purchase of gold-related shares.
Because of Germany’s weakening export driven economy and because German bonds are preferred by the European Central Bank, yields on the country’s 10-year bonds are negative. Consequently, European bond investors, primarily made up of banks and insurers that depend on income, have turned to US Treasuries. Upward pressure on the dollar means downward pressure on
The U.S. student load system is broken. Borrowers currently owe more than $1.5 trillion, an average of $34,000 per borrower. Over two million of them have defaulted on their loans in just the past six years, and the number grows by 1,400 a day. The federal government now acknowledges that taxpayers stand to lose $31.5
As noted May 22, “the odds are that the Fed will next cut interest rates.” While there have been no rate cuts, Fed Chair Jerome Powell has made statements that indicate rate cuts this year. Also noted: “gold should respond well.”
Because of Germany’s weakening export driven economy and because German bonds are preferred by the European Central Bank, yields on the country’s 10-year bonds recently went negative. Consequently, European bond investors, primarily made up of banks and insurers that depend on income, have turned to US Treasuries. This has resulted in upward pressure on the
In the first seven months of this fiscal year, the federal budget deficit grew 38% over the same period last year. The Treasury ran a $541 billion deficit from October through April, compared with $385 billion during the same period a year earlier. Part of the increase was attributable to a shift in the timing