We’re all relatively familiar with Gross Domestic Product, or GDP, which measures the aggregate expenditure, or output of the economy. However, we tend to hear much less about its unloved cousin, Gross Domestic Income, or GDI, which tracks the economy’s total income.
A Federal Reserve economist, Jeremy Nalewaik, recently decided to look at the US downturn [...]GDP Doesn’t do This Slump Justice originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
The Obama administration is poised to ban offshore oil drilling on the outer continental shelf until 2012 or beyond. Meanwhile, Russia is making a bold strategic leap to begin drilling for oil in the Gulf of Mexico. While the United States attempts to shift gears to alternative fuels to battle the purported evils of carbon emissions, Russia will erect oil derricks off the Cuban coast. Offshore oil production makes economic sense. It creates jobs and helps fulfill America's vast energy needs. It contributes to the gross domestic product and does not increase the trade deficit. Higher oil supply helps keep...
Major Western economies have moved “substantially” closer to losing their top-notch credit ratings, with the United States and Britain under the most pressure, Moody’s Investors Service said Monday. “Growth alone will not resolve an increasingly complicated debt equation,” Moody’s said. “Preserving debt affordability” — the ratio of interest payments to government revenue — “at levels consistent with Aaa ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion.” The administration of President Barack Obama estimates that the U.S. deficit will rise to 10.6 percent of gross domestic product in the current fiscal year,...
It’s been a busy week in Athens. First, some 60,000 Greeks marched through the streets in response to government austerity measures — spending cutbacks and tax increases. The demonstrators ended up leaving the public services in disarray, crippled without workers. Afterward, the riots started… police used tear gas and the mob threw stones and Molotov [...]European Union Considering new EU Bonds to Bail out Greece originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
The Congressional Budget Office has released its assessment of President Obama's budget, and the results aren't pretty. According the analysis, deficits in the next decade will be worse than what the White House has projected, much higher than they would be if we were to follow current law, and even higher than what CBO had forecast last year. Between 2011 and 2020, the nation will accumulate $9.8 trillion in deficits as a under the Obama budget, according to the CBO, ending the decade with $20.3 trillion in public debt, which translates into a staggering 90 percent of gross domestic product...
(Reuters) - After a growth spurt at the end of 2009, the U.S. economy will slow in the months ahead, keeping the Federal Reserve from raising borrowing costs until the final three months of the year, a Reuters poll showed. The survey of over 70 economists suggests U.S. gross domestic product will grow at a 2.6 percent annualized rate between January and March, less than half the pace of the fourth quarter of 2009, when it expanded at a 5.9 percent rate. For all of 2009, the world's biggest economy contracted by 2.4 percent, but the poll predicts it will...
Greece this past weekend saw the worst rioting since the debt crisis began. After Athens had announced new tax hikes and budget cuts to reduce a deficit of 13 percent of gross domestic product, mobs drove guards from Greece's Tomb of the Unknown Soldier and attacked police. In our own country, students, teachers and administrators at UC-Berkeley held a "Strike and Day of Action to Defend Education" to demand more money from taxpayers -- for themselves. How badly are they suffering? According to Peter Robinson of Hoover Institution, California spends $13,000 per student in the state system, compared to $6,000...
By Irwin Kellner, MarketWatch PORT WASHINGTON, N.Y. (MarketWatch) -- The fledgling economic recovery appears to be running out of gas. The fuel for this or any other recovery has to come from the consumer. Purchases of goods and services by people like you and me account for about 70% of gross domestic product, so without our help a recovery could not last too long. Guess what? This is exactly what seems to be happening. Retailers report that, for the most part, shoppers are few and far between. The recent run of economic data is most compelling. Just about all of...
The federal deficit would hit $1.5 trillion in 2010 under President Barack Obama's proposals, the Congressional Budget Office (CBO) projected Friday. The nonpartisan budget office said it projected a deficit measuring 10.3 percent of gross domestic product (GDP) this year, and a $1.3 trillion deficit in 2011 that would measure 8.9 percent of next year's GDP.
WASHINGTON (AFP) – US President Barack Obama has underestimated the government budget deficit for the next decade by 1.2 trillions dollars, estimates by Congress showed Friday. Under Obama's latest budget projections, the cumulative deficit over the 2011-2020 period would be 8.532 trillion dollars, or 4.5 percent of gross domestic product, the nation's economic output. But the Congressional Budget Office estimated Friday the deficit would snowball to 9.761 trillion dollars or 5.2 percent of GDP. The CBO expects a deficit "1.2 trillion dollars greater over the 2011-2020 period than what the administration anticipates under the president?s budget," CBO director Douglas Elmendorf...
Friday, March 19, 2010
0 Comments