Step One: Identify the Problem
$1.50: Amount spent by the US government for every $1 inflow
Overall world growth isn't a problem: for example emerging economies are driving growth. The trouble is in the developed markets, such as the United States, and specifically debt. In the US, debt-to-GDP ran up to 370%, and now we're dealing with the ramifications. The US government has borrowed and spent a lot of money to stimulate the economy. A household running its income statement like the US government would be spending $1.50 for every $1.00 taken in.
Sustainable? Not exactly.
Read more in Taking Stock: Market Views from the Go-Anywhere Team.
Source: BlackRock, November 2012
Prepared by BlackRock
Delivered courtesy Joel W. Grams, CRPC®, CLTC,
Registered Representative, Financial Planner, 212 Capital Group
38 Main Street Suite 360, Westlake Ohio 44145
(440) 835-4501 Ext 17, jgrams@212capitalgroup.com
The foregoing discussion is general in nature and not intended as specific advice.
New England Financial nor its representatives are engaged in rendering tax,
accounting or legal advice. A qualified professional should be consulted regarding the effect of such considerations on the matters covered in this publication.
william
1:04 pm on Friday, January 11, 2013
According to the latest data, profits of U.S. corporations are at record levels even as the U.S. economy gasps for air. Profits have been totally divorced from the economic fortunes of the American people. Corporate profits now account for the largest share of gross domestic product since 1950 . Some interesting facts to think about.