Skip to content

Despite naysayers -- America is successfully addressing debt

By Catholic Online (NEWS CONSORTIUM)
4/24/2014 (3 years ago)
Catholic Online (www.catholic.org)

Successful exports of energy has helped nation catch up

"Claims that President Barack Obama is bankrupting America with a lurch towards hard-Left statism are for tabloid consumption only," Columnist Ambrose Evans-Pritchard with The Telegraph writes. In a world littered with bad economic news, the proof is becoming clear: Not only has America addressed its ongoing debt, it has made inroads on whittling down on what it owes in record time. 

What's turning the tide is the fact that the U.S. energy revolution, with oil booms reported across the Dakotas, Wyoming, Nebraska, Washington, Oregon, Utah and Texas.

What's turning the tide is the fact that the U.S. energy revolution, with oil booms reported across the Dakotas, Wyoming, Nebraska, Washington, Oregon, Utah and Texas.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (www.catholic.org)
4/24/2014 (3 years ago)

Published in Business & Economics

Keywords: Debt, energy boom, United States, stabilization


LOS ANGELES, CA (Catholic Online) - Americans, contrary to global belief, have become increasingly more responsible. Spending by the U.S. Federal government has seen the steepest decline since the34 demobilization after the Second World War.

Outlays have fallen from 24.4pc to 20.6pc of GDP in five years and spending is roughly in line with its 40-year average. All of this has been accomplished without driving the economy into recession or a "Lost Decade."

Check out our fine selection of Bibles -- by going here!

The U.S. Congressional Budget Office expects the budget deficit to drop to 2.8pc of GDP this year, and 2.6pc next year. The secret is that the U.S. economy is expanding fast enough to outgrow its debts.

What's turning the tide is the fact that the U.S. energy revolution, with oil booms reported across the Dakotas, Wyoming, Nebraska, Washington, Oregon, Utah and Texas.

It's estimated that shale gas and oil have given the U.S. economy an extra tailwind worth 1.9pc of GDP - what Francisco Blanch, from Bank of America, calls the "energy carry," with effects rippling through the chemical and plastics industries. New investments in ammonia plants are rising at an exponential rate, thanks to natural gas prices that are $4.40 in the U.S. and $15 on Asia's spot market.

The U.S. transferred more than $3 trillion to oil exporters from 2001 to 2008, but no longer. The U.S. is back to where it was in 2000 with an energy deficit well below 2pc of GDP and improving every month, while the eurozone is at -4.4pc and getting worse, and Japan is at -6.3pc.

In addition, the U.S. has added 2.5 million barrels a day of crude output over the last three years, almost as much as the next three countries combined. America covered a quarter of its oil needs in 2007. It covers well over half today and has overtaken old global rival Russia to become the world's biggest exporter of refined petroleum products, and will soon be an exporter of liquefied natural gas as well.

The U.S. has been losing part of its industry with each recession. A new study by the International Monetary Fund, however found that the pattern has been very different this time. Manufacturing has recovered quickly, led by machinery, computers and electronics. America's global share of manufacturing has stabilized at 20pc.

The other half of the story is monetary stimulus a l'outrance - quantitative easing - to offset fiscal tightening and prevent a "pro-cyclical" downward spiral, which is what occurred when the European Central Bank jumped the gun and raised rates twice in 2011 before recovery was entrenched, setting off the disastrous crisis that nearly destroyed EMU in mid-2012.

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for SEPTEMBER 2017
Parishes.
That our parishes, animated by a missionary spirit, may be places where faith is communicated and charity is seen.


Comments


More Business & Economics

Is now the time to sell? Experts say Wall Street is on a bubble, here's why Watch

Image of Stocks appear to be on a bubble according to many experts.

Is now the time to sell on Wall Street? Stocks are on a bubble, according to multiple analysis and expert opinions. Fundamental market ... continue reading


Forget Winter, Recession is Coming Watch

Image of Major indicators reveal recession is coming.

The economy is about to go into recession according to several Wall Street firms. They are warning investors to prepare for an end to the ... continue reading


Get ready for self checkout everywhere: 3.5 million retail cashiers are about to be replaced by automation Watch

Image of Retail cashiers often loathe self checkout stands. However, both cashiers and self checkout stands are facing replacement as new technologies threaten to eliminate the checkout process.

Automation is coming soon to a store near you as retailers look for ways to cut costs and improve profits. The best way to accomplish this ... continue reading


'Budgets are moral documents'

Image of

The highly relevant quote, "Budgets are moral documents," has been arguably attributed to Rev. Martin Luther King, Jr. But if he didn't ... continue reading


Central bankers warn of looming global recession Watch

Image of A recession could be lurking around the corner and central banks have been asked to take note, especially in Asia.

A group of central bankers has warned that a great recession, possibly larger than the 2007-2008 recession is looming on a global scale. ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.