Investing and Global Finance News

Category Archives: Economy

Understanding America’s Public Debt

America’s debt is huge.  Standing at 22 trillion dollars, this figure is not doing anyone any favors.  Indeed, according to Research Assistant at the Catholic University  of America, Robert Warren, “we have a credit card now and our grandchildrens name is on the card and they will get the bill. They will have to pay back for us, 22 trillion dollars to our creditors and they will receive no direct benefit from it.”

There should be cause for concern.  The current figure is actually the highest it has ever been, reflecting an increase of over $2 trillion from 2017 when Trump came into power.  Which is strange really given that America is currently in its second-longest economic expansion since the post-WWII boom.  And annual deficits are anticipated to rise even more.

Furthermore, according to the CBO, the next decade will witness an anticipated growth of $1.2 trillion per annum.  Plus: “Other than the period immediately after World War II, the only other time the average deficit has been so large over so many years was after the 2007–2009 recession.”  

It’s therefore crucial to put tax increases in place in an effort to reduce the debt issue.  While of course this is hard to hear for most people, some wealthy individuals welcome it.  Indeed, a few months ago, billionaire Douglas Durst said outright that he “support[s] higher taxes on people like

[him]

.”  If it isn’t going to have much impact on this sect of society, but it could positively effect the US economy.

The US: Business and Consumer Spending

One way to measure the success of the US economy is to review consumer spending.  While Q4 2018 business spending escalated to 2.6 percent, economists are concerned that Q1 2019 will not even grow at half that level due to “sluggish consumer spending” as well as the government shutdown. One of the reasons for the… Continue Reading

2019: Where to Invest

In this video, The Economist’s Capital Markets Editor John O’ Sullivan talks about where to invest in 2019.  He begins by talking about the not so positive 2018 year of stock investments and how this trend really began in 2009 with the bullish market. Continue Reading

Top 2019 Investments

As we come to the end of 2018 and complete our fiscal statements for the year, it’s a good time to start looking at possible investment options for next year. And with a quick scour of the net, one can find a variety of individual experts giving their personal preferences as to the best way forward.… Continue Reading

Nigeria and Capital Markets

For the economy in Nigeria to grow and flourish, capital markets are “critical.”  According to Nigerian Stock Exchange CEO Oscar Onyema – in his recent address to the 5th Lagos and London Capital Markets in Partnership Conference – for growth to really happen, Nigeria needs a “solid and vibrant capital market ecosystem that will attract… Continue Reading

US Economy: Looking Good

According to Jamie Dimon, CEO of JPMorgan Chase, America’s economy is currently looking “pretty good.”  However, it is likely that there will soon be a “downturn,” with the economy “certainly dipping into a recession.” In an article written by Troy Tanzy and Daniel Rangel, it was stated: “Core inflation was back above 2% for March,… Continue Reading

Market Watch: US and China

With any kind of political tension comes the potential for delay in progression of the achievement of economic goals. At least, that could be the case for decision-making (and deals) between America and China.  According to ABB CEO Ulrich Spiesshofer, with America and China’s recent threat to fresh import tariffs, a “quite unique” state of… Continue Reading