Debt in the United States

The NY Times takes a look at the US Debt and what it looks like in the future.

The Debt Buildup

Our federal debt is almost 100% of our GDP, which has not happened since WWII and will be a significant headwind to growth for the next decade. Fiscal discipline needs to return Washington.

Chimerica

Recent articles discussing the status of China - America relations:

The Great Wallop - NY Times Op-Ed By NIALL FERGUSON and MORITZ SCHULARICK

China has now become the biggest risk to the world economy - Telegraph By Ambrose Evans-Pritchard

Developing Economic Statistics

This article from the NY Times shows how economic statistics are misrepresenting the economy.

Grappling with these blind spots, nearly all of the 80 experts at the conference, which was sponsored by the Upjohn Institute and the National Academy of Public Administration, agreed that the statistics now published tend to overstate the strength of the economy. That view was shared by those who attended from the Bureau of Economic Analysis, the Bureau of Labor Statistics and the Federal Reserve, all big players in measuring economic performance.

The article primarily discusses how work done by foreign workers inflates the productivity gains of the U.S. workforce.

States are Finally Fed Up with Banks

Look for more litigation and states asserting more power over banks. States are pondering fraud suits against banks after the Supreme Court decision last June in Cuomo v. Clearing House. Banks will experience 50 states enforcing regulation against them, like the article below identifies, look for the states hardest hit by the housing crisis to take legal action first.

States Weigh Fraud Suits Against Banks - NY TIMES

I am eager to see how this plays out, the bankers cannot be happy about this.