Ivanhoe Mines Ltd T.IVN

RE:Interest Rates

[bloomfield18]

By the way, I’m not singling out Obama for criticism. It’s not about assigning blame. Rather the intent is to comprehend underlying market dynamics. I never bought into the story that 1 to 2% GDP growth constitutes a “recovery”. Especially considering that on average 6% of that annual GDP was financed through approximately $1.16 trillion additional government debt for each year of the Obama Administration. Never mind the deficit. You can shuffle money between accounts, and make deficits fall through Accounting Magic. What didn’t fall was overall federal debt. On Jan 20, 2009 it was $10.6 trillion. When Obama left office eight years later, it was $19.9 trillion.

The math is easy. $19.9 trillion - $10.6 trillion = $9.3 trillion.
$9.3 trillion / 8 = $1.16 trillion a year.

And this link demonstrates in graphical form that debt has increased in a relatively straight line from 2008 right up to the present time. It was wasn’t frontloaded in 2009 to 2010, a favourite argument in defence of Obama’s economic policies. Once again, I’m not singling out Obama. Like Hillary Clinton said, It Takes a Village (of Establishment experts).

https://www.statista.com/statistics/187867/public-debt-of-the-united-states-since-1990/


Today the US federal debt is still increasing too fast. It’s now $21.4 trillion. Since Trump was elected, in 1.75 years the debt has increased $1.5 trillion. So, it’s rising at roughly the same rate, but with 4% plus GDP growth. They’re getting far better performance from the real economy. I believe this is a result of the cut in corporate taxes to 21% from 35%. This makes America  more competitive globally for actual physical investment. Deregulation and general non enforcement have cut through a tangle of red tape. The result is an extra 2 to 3% GDP growth. Their next step should be to slash spending, and try and kick the debt addiction. Yes, lots more screaming and yelling is on the way. Those predicting a recession are jumping the gun. It is not reflected in real economic data. If anything the opposite has occurred. Forward US economic momentum has accelerated.