Posts Tagged ‘budget deficit’

The USA is still bankrupt and the markets know it

September 3, 2011 by · Leave a Comment
Filed under: Economics, Politics 
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The markets have tumbled again this last week and this should come as no great surprise, the USA is still effectively bankrupt. They’re still borrowing huge amounts just to keep cash flowing but fundamentally the US Govt needs to stop spending and start paying. Fundamentally it’s fairly simple: government finance is, in many way, just [...]

Why the markets are heading down and how a budget deficit works

August 7, 2011 by · Leave a Comment
Filed under: Business, Economics 
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This past week the markets have been in turmoil and have fallen sharply with the FTSE down by 10% over the last week. And in my view that’s a good thing. You see, for too  long now the market has been going up (see chart below), it went from around 4500 in May 2009 to [...]