All tricks and no treats for the US today, as US Debt looks to overtake US GDP for the first time since World War 2.
US GDP currently stands at $15.013 trillion, but debt has been sharply rising, with an increase of $1.8 trillion in the past 10 months.
In addition to the GDP/Debt ratio, global financial derivatives broker MF Global this morning had their operations suspended by the New York Fed after posting record loses and having their bonds downgraded to junk, leaving their $42 billion (2010) in assets in serious jeopardy as the company prepares to file for bankruptcy.
The news is sure to rock an already embattled American economy, that in recent months has seen major financial turbulence and political one-upmanship result in the slashing of America’s credit rating; the first downgrade in the history of the States.
Unemployment currently stands at an estimated 25 million in the US, or roughly 9.1% of the US workforce, and continues to look as bleak as the UK’s own ever increasing dole queue.
Markets still remain extremely choppy at best, following a period of extreme instability instigated by political bickering over America’s debt ceiling and the subsequent credit downgrade, and further fuelled by fears of a Greek default and a possible bankruptcy domino effect of banks and countries alike.
Unrest has continued alongside investor fears, as more and more take to the streets to join the Occupy protests, a primarily anti-Capitalist movement that demands a more realistic solution to the economic crisis rather than just throwing more money at the people that got the States into such a mess to begin with.
With unemployment spiralling, growth forecasts slashed faster than a UK public sector budget, and growing unrest, America can only expect “double, double toil and trouble” in the coming months.
But this is only to be expected. America has infighting ghouls and goblins in Government, zombies in the press, and vampires in Wall Street.
Maybe the constantly repeated investor idea to buy into silver might not be too bad an idea after all.