Goldman Sachs: The fiscal outlook for the US 'is not good'

[mentalfloss]

Well at least Canada is doing well.

Thanks Trudeau!


Goldman Sachs: The fiscal outlook for the US 'is not good'

The fiscal outlook for the United States "is not good," according to Goldman Sachs, and could pose a threat to the country's economic security during the next recession.

According to forecasts from the bank's chief economist, the federal deficit will increase from $825 billion (or 4.1 percent of gross domestic product) to $1.25 trillion (5.5 percent of GDP) by 2021. And by 2028, the bank expects the number to balloon to $2.05 trillion (7 percent of GDP).

"An expanding deficit and debt level is likely to put upward pressure on interest rates, expanding the deficit further," Jan Hatzius — Goldman's chief economist — wrote Sunday. "While we do not believe that the U.S. faces a risk to its ability to borrow or repay, the rising debt level could nevertheless have three consequences long before debt sustainability becomes a major obstacle."

Legislators passed a package of corporate and individual tax cuts in December, a two-year budget deal in February and a massive spending bill in March that boosted government expenditures on both domestic and military programs.

In light of the big spending and easier tax burden, the Congressional Budget Office – Capitol Hill's nonpartisan financial scorekeeper – in April projected that debt could equal GDP within a decade if Congress extends the tax cuts, a level not seen since World War II.

https://www.cnbc.com/2018/05/21/goldman-sachs-the-fiscal-outlook-for-the-us-is-not-good.html

 

[coldstream]

The 5 big Investment Banks

JPMorgan Chase; Goldman Sachs; Bank of America Merrill Lynch; Morgan Stanley; Citi Group.. + Credit Suisse, Barclays, Deutsche Bank

are to most predatory and destructive force in the World Today. They are the leading proponents of a borderless, globalized economy.. for a deregulation of banking and investment and denationalization of money.

Their rise has been in concert with the emergence of monetarism (free trade in currency and credit). They are at forefront of imposing austerity on sovereign countries and forcing the sale of public assets to cover debts. Its a shell game. If a country can't control its currency it will inevitably fall into global indebtedness in the hands of these criminal institutions.

The heads of these banks belong in prison. The only solution is to break up these investment banks along national lines, and to completely separate investment and consumer banking. Nothing they advise should be seen out of the context of their global agenda.

 

[Jinentonix]

Yeah, thanks Turdoh. Canada’s Debt Problem Omitted From The Headlines

Here are a few key numbers behind Canada’s big first quarter of GDP growth: Household spending on goods exploded, rising 4.3%. The increase in spending is short-term, however. Consumers have taken on more debt despite stagnant wages.

Imports into Canada witnessed a 13.7% annualized jump in Q1, while exports lagged, resulting in a trade deficit. Canada is an exporting nation. There is no way around this. Blessed with an abundance of natural resources and a relatively small population, for a nation of its geographical size, Canada has depended upon exports to bolster GDP for generations. Although manufacturing has made gains in recent years, it has never recovered to its highs of the mid-2000s (pre-Great Recession).

In recent months, Canadian exports have improved; in fact, exports gained 1.8% in April to a record high $47.7 billion. The big ticket was energy, which accounted for $8.8 billion of the total.

Imports jumped to $48.1 billion – the fifth consecutive monthly increase and also a record high. Canada remains in a modest trade deficit for many standards; but, for a country with such natural resource wealth and a weak Canadian dollar, this is concerning.

https://www.pinnacledigest.com/economy/canadas-debt-skyrockets/

 

[mentalfloss]

Poor conbots just absolutely loathe it when the economy does well.

Guess they just want to live in squalor.

*shrugs*


Canada’s economy shows surprise strength with April GDP gain | Calgary Herald

 

[Hoid]

The 5 big Investment Banks

JPMorgan Chase; Goldman Sachs; Bank of America Merrill Lynch; Morgan Stanley; Citi Group.. + Credit Suisse, Barclays, Deutsche Bank

are to most predatory and destructive force in the World Today. They are the leading proponents of a borderless, globalized economy.. for a deregulation of banking and investment and denationalization of money.

Their rise has been in concert with the emergence of monetarism (free trade in currency and credit). They are at forefront of imposing austerity on sovereign countries and forcing the sale of public assets to cover debts. Its a shell game. If a country can't control its currency it will inevitably fall into global indebtedness in the hands of these criminal institutions.

The heads of these banks belong in prison. The only solution is to break up these investment banks along national lines, and to completely separate investment and consumer banking. Nothing they advise should be seen out of the context of their global agenda.

this is actual communism.

 

[AncientMuse]

No surprise, and it's to be expected when you've got a clown in office that likes to cut taxes and increase spending for pet projects like walls, space cadet forces, and massive bumps to military spending.

You can't cut back on incoming revenues while increasing outgoing expenses... and expect to not see your bottom line plummet into the abyss. Basic Math 101.

Americans will slowly start to feel the pain of Trump's spending habits in 3-4 years from now.

"Trickle down" economics is a failed magical fantasy that has never worked and has no grasp on reality.... Other than to pad the pockets of the fat pigs at the top of the pyramid as their tax burdens and regulatory control systems get reduced... while the plebeians at the bottom make up the difference.

 

[Danbones]

Riiiiight, and who is screwing the country?
:0
LOL, goldman sachs, jeeezus!

No surprise, and it's to be expected when you've got a clown in office that likes to cut taxes and increase spending for pet projects like walls, space cadet forces, and massive bumps to military spending.

You can't cut back on incoming revenues while increasing outgoing expenses... and expect to not see your bottom line plummet into the abyss. Basic Math 101.

Americans will slowly start to feel the pain of Trump's spending habits in 3-4 years from now.

"Trickle down" economics is a failed magical fantasy that has never worked and has no grasp on reality.... Other than to pad the pockets of the fat pigs at the top of the pyramid as their tax burdens and regulatory control systems get reduced... while the plebeians at the bottom make up the difference.

Got any stats to back up that MF style opinion?
NOPE?

Oh well...back to the 'ol chalk board.

 

[Twin_Moose]

No surprise, and it's to be expected when you've got a clown in office that likes to cut taxes and increase spending for pet projects like walls, space cadet forces, and massive bumps to military spending.

You can't cut back on incoming revenues while increasing outgoing expenses... and expect to not see your bottom line plummet into the abyss. Basic Math 101.

Americans will slowly start to feel the pain of Trump's spending habits in 3-4 years from now.

"Trickle down" economics is a failed magical fantasy that has never worked and has no grasp on reality.... Other than to pad the pockets of the fat pigs at the top of the pyramid as their tax burdens and regulatory control systems get reduced... while the plebeians at the bottom make up the difference.

So what economic model would you follow? What other model will keep the dream of becoming rich by working hard and inspire innovation?

The first part of your rant has been in every president's speech for decades.

 

[Hoid]

Consumer spending is slowing and inflation is rising.

The Obama Recovery is starting to run out of steam.

https://www.bloomberg.com/news/arti...?utm_source=google&utm_medium=bd&cmpId=google

 

[AncientMuse]

So what economic model would you follow? What other model will keep the dream of becoming rich by working hard and inspire innovation?

The first part of your rant has been in every president's speech for decades.

A combination of keynesian, classical, and supply/demand economic models work best for both upward and downward flows.

This ridiculous invention of "trickle down" (aka reaganomics) is a friggin joke and has never been proven to have worked... and more importantly, has never been proven to even come into fruition at any time during the past several decades since Reagan implemented it in the 80's.

All you have to do is look at the stats for corporate profit increase trends and CEO wage increases since then to see what direction "trickle down" actually goes in... it does not trickle down, it trickles up.

 

[Hoid]

The tax cut worked perfect. Rich people pay less tax, exactly as planned.

 

[Walter]

One week today we’ll get the first look at Q2 GDP.

 

[AncientMuse]

One week today we’ll get the first look at Q2 GDP.

You understand that quarterly GDP reports mean diddly squat with regards to overall economic health and longevity, right ?

 

[Danbones]

...but YOUR opinion does?

 

[AncientMuse]

...but YOUR opinion does?

Not my opinion.

Statistical and historical facts and numbers speak for themselves. It's not my fault you guys aren't familiar with the subject of macro-economics and Reagan's failed economic model.

Do your own homework if you don't believe me.

 

[Twin_Moose]

A combination of keynesian, classical, and supply/demand economic models work best for both upward and downward flows.

This ridiculous invention of "trickle down" (aka reaganomics) is a friggin joke and has never been proven to have worked... and more importantly, has never been proven to even come into fruition at any time during the past several decades since Reagan implemented it in the 80's.

All you have to do is look at the stats for corporate profit increase trends and CEO wage increases since then to see what direction "trickle down" actually goes in... it does not trickle down, it trickles up.

So you are either in favour of the Gov. investing into business to keep industry moving through natural supply and demand cycles. Sounds good but downside is borrowing money to keep business's going, and people working, also propping up some businesses that are out producing demand creating a false economy that has to burst. Good for short term but not a long term solution, worked pretty well to get us through the last depression. we are still paying for it though.


Or in basically what we have now, which is based on supply and demand that derived from Classical economics. Trickle down economics has been here since before the invention of money, take the feudal system for example, what the serf got to keep was the difference of what the lord demanded and mother nature allowed you to produce. Today's version of supply and demand are heavily influenced by the consumers demand for cheap goods by shopping around for the best deals.
This demand for cheaper goods has created the multi national corporations, Mom and Pop shops couldn't compete against large stores which couldn't compete against chain stores which forced mergers between chain stores that put pressure on Governments to open borders to get cheaper goods for you to choose from.


So I am sorry to inform you Skippy you are responsible for greedy multinational corporations that you are now demanding to pay more in taxes for you and your buddies to get a free edumacation

 

[taxslave]

Well at least Canada is doing well.

Thanks Trudeau!


Goldman Sachs: The fiscal outlook for the US 'is not good'

The fiscal outlook for the United States "is not good," according to Goldman Sachs, and could pose a threat to the country's economic security during the next recession.

According to forecasts from the bank's chief economist, the federal deficit will increase from $825 billion (or 4.1 percent of gross domestic product) to $1.25 trillion (5.5 percent of GDP) by 2021. And by 2028, the bank expects the number to balloon to $2.05 trillion (7 percent of GDP).

"An expanding deficit and debt level is likely to put upward pressure on interest rates, expanding the deficit further," Jan Hatzius — Goldman's chief economist — wrote Sunday. "While we do not believe that the U.S. faces a risk to its ability to borrow or repay, the rising debt level could nevertheless have three consequences long before debt sustainability becomes a major obstacle."

Legislators passed a package of corporate and individual tax cuts in December, a two-year budget deal in February and a massive spending bill in March that boosted government expenditures on both domestic and military programs.

In light of the big spending and easier tax burden, the Congressional Budget Office – Capitol Hill's nonpartisan financial scorekeeper – in April projected that debt could equal GDP within a decade if Congress extends the tax cuts, a level not seen since World War II.

https://www.cnbc.com/2018/05/21/goldman-sachs-the-fiscal-outlook-for-the-us-is-not-good.html

Goldman-Sachs. DIdn't they have to get bailed out by the tax payer a few years back when they seriously missread the market?

The tax cut worked perfect. Rich people pay less tax, exactly as planned.

Well of course since they are the only ones that actually pay taxes.

 

[mentalfloss]

One week today we’ll get the first look at Q2 GDP.

If GDP isn't higher than 6, then the tax cuts were a complete bust.

 

[AncientMuse]

So you are either in favour of the Gov. investing into business to keep industry moving through natural supply and demand cycles. Sounds good but downside is borrowing money to keep business's going, and people working, also propping up some businesses that are out producing demand creating a false economy that has to burst. Good for short term but not a long term solution, worked pretty well to get us through the last depression. we are still paying for it though.


Or in basically what we have now, which is based on supply and demand that derived from Classical economics. Trickle down economics has been here since before the invention of money, take the feudal system for example, what the serf got to keep was the difference of what the lord demanded and mother nature allowed you to produce. Today's version of supply and demand are heavily influenced by the consumers demand for cheap goods by shopping around for the best deals.
This demand for cheaper goods has created the multi national corporations, Mom and Pop shops couldn't compete against large stores which couldn't compete against chain stores which forced mergers between chain stores that put pressure on Governments to open borders to get cheaper goods for you to choose from.


So I am sorry to inform you Skippy you are responsible for greedy multinational corporations that you are now demanding to pay more in taxes for you and your buddies to get a free edumacation

Like I said:

A combination of keynesian, classical, and supply/demand is what works best.

You trying to pick apart each model individually serves no purpose and has no relation to what I said. We all know that any one particular model in and of itself has pros and cons.

Stagnant wages diverging further and further away from rising inflation and cost of living rates is what forces people to demand lower priced goods, out of necessity. Entities like Walmart and Dollar stores recognized the trend and jumped on the gravy train.

No clue who this Skippy person is or what an edumacation is... but as an accountant (now retired) I helped multi-national corporations, mid-sized private businesses, and small mom and pop operations try to stay afloat in an ever-changing global economic world where mergers and cartel monopolies of crony capitalism are now the dessert du jour. So yes, I guess you could say I helped the business world get their cake and eat it too.

My bad.

 

[Bar Sinister]

Isn't it interesting how the Trumpsters like Jin immediately attempt to deflect attention away from another Trump failure to someone else, in this case Trudeau. Of course this completely ignores the fact that the policies of the Canadian government have nothing to do with Trump's mismanagement of another aspect of the US economy.