Tag Archives: United States

S&P's Math: wrong, but right

By Andrew Busch | Published: August 8, 2011

After the downgrade of the United States by S&P, the US Treasury released statements criticizing the analysis and pointing out a $2 trillion error in the debt-GDP ratios. This meant that S&P erred in their 20121 projection of the nation’s debt as a share of gross domestic product to reach 93 percent versus 85 percent. Acting assistant Treasury Secretary John Bellows wrote, “(this error raised) fundamental questions about the credibility and integrity of S&P’s ratings action.” Sadly for S&P, the point is correct.

However, I encourage everyone to go to Congressional Budget Office – Home Page and do your own … …READ MORE

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The Global Debt Dilemma

By Andrew Busch | Published: February 9, 2010

Apparently, the Greek government has called in the big hitters to help them with their fiscal dilemma. Joseph Stiglitz has been advising the government and his first analysis is to state that the austerity plan will likely stifle the country’s growth. The 2001 Nobel Peace Prize winner said that without balancing measures to stimulate the economy — such as development funds and other ways to increase liquidity — the deficit reduction could slow growth according to the WSJ.

“Slower growth could in turn lead to lower tax revenues and end up increasing the budget deficit. “I would give a strong … …READ MORE

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Russia and China's Currency Plans

By Andrew Busch | Published: April 3, 2009

Over the last two weeks, both China and Russia have made headlines with their unhappiness over the current financial world order. The Chinese are worried over the future of their holdings of both the US dollar and US debt. The Russian’s are concerned about the use of the US dollar as a reserve currency and likely worried over the use of the US dollar in the pricing of their chief export oil.

In his speech to the G-20, Chinese President Hu Jintao said that the International Monetary Fund should increase its surveillance of the economic, and particularly the monetary, policies … …READ MORE

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