Your Economy (No Politics)

[al44]

Jim Rogers: ‘US is the Biggest Debtor in the World and It’s Getting Worse Every Day’… Goldman Sachs: Global Growth Will Suffer Under Trump No Matter What

by IWB · November 15, 2016

Legendary investor, financial commentator and author of several books Jim Rogers told Radio Sputnik that the United States is “the largest debtor nation in the history of the world” and the situation is becoming even more untenable.

Rogers was commenting on the US dollar strengthening in recent days. The US currency reached its highest multi-month levels against other major currencies on Monday morning. The surge came on speculation that fiscal-stimulus under President-elect Donald Trump will bolster America’s economic growth and at the same time prompt the Federal Reserve to increase interest rates.

“There’s a lot of turmoil coming into the world. And when people are scared, they look for a safe haven. Many people think that the US dollar is a safe haven for historic reasons. It’s not a safe haven. America is the largest debtor nation in the history of the world and it’s getting worse every day. But that does not matter. People think that it’s a safe haven and that’s why it’s going higher because people are getting more and more worried,” he explained.

https://sputniknews.com/us/201611141047424644-jim-rogers-us-debt/

Earlier today, we presented an analysis by Goldman Sachs which emerged with a lukewarm take on Trump’s policies as to how they stand to impact US domestic growth, with only Goldman’s “adverse” scenario resulting in a “stagflationary”, i.e., recessionary outcome. However, in a follow up report by another set of Goldman economists Nicholas Fawcett and Sven Jari Stehn, one which looks at the broader global set of Trump policy consequences for the entire world – because after all, the US is still a part of it – it finds that virtually every scenario leads to a global contraction, something we previewed yesterday in our post titled “What’s Good For The US In This Case, Is Not Good For Emerging Markets.”

http://www.zerohedge.com/news/2016-11-14/goldman-just-killed-trump-euphoria-concludes-global-growth-will-suffer-under-trump-n

Over the last decade, the debt has expanded by more than $3 trillion beyond the sum of the government’s budget deficits over that same period of time. In most years, in fact, the government’s reported budget deficit is lower than the actual growth in the national debt. Fiscal 2016 was a perfect example. Just weeks ago, the Treasury Department reported a $587 billion budget deficit for the fiscal year. But according to the government website that tracks the total U.S. debt to the penny, the actual national debt grew by about $1.4 trillion.

http://www.washingtonexaminer.com/national-debt-is-growing-faster-than-you-think/article/2607286

Words matter. The process of understanding why Donald Trump is now heading for the White House starts with the correct description of what has happened in the eight years since Barack Obama became president.

Some economists call the turbulent period that followed the collapse of Lehman Brothers the Great Recession. Others say the US along with other developed nations is experiencing secular stagnation. Anything, it seems, to avoid using the D word: depression.

The dictionary definition of a depression is a sustained, long-term downturn in economic activity, which sums up precisely what has occurred since 2008. Growth rates globally have remained low despite colossal amounts of stimulus. Living standards have barely risen and the threat of deflation has loomed large. The depression since 2008 has not been as severe as that of the 1930s but there are echoes of it all the same: in the food banks that are the new soup kitchens; in the mass movements of migrants in search of a better life who are the modern equivalent of the Okies in the Grapes of Wrath; and in Trump, who has tapped into anger that has been bubbling away quietly for decades.

http://investmentwatchblog.com/jim-rogers-us-is-the-biggest-debtor-in-the-world-and-its-getting-worse-every-day-goldman-sachs-global-growth-will-suffer-under-trump-no-matter-what/