The issues in the U.S. economy are becoming similar to the ones in the eurozone countries. For example, in those countries, government spending simply was greater than tax revenue, hence the basic reason behind the deficit.
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Chicago, IL;Houston, TX;Los Angeles-Long Beach, CA;New York, NY;Washington, DC (PRWEB) December 02, 2012
In a recent Profit Confidential article, lead contributor and financial expert Michael Lombardi notes that, while debt-infested countries in the eurozone are struggling to decrease their budget deficits, the U.S. government is reporting an increase in its deficit. Lombardi reports that, for the fiscal year of 2012, the federal government budget deficit was $1.09 trillion, slightly below 2011’s deficit of $1.29 trillion. (Source: U.S. Department of the Treasury, October 12, 2012.) He notes that, as a percentage of gross domestic product (GDP), the U.S. government’s budget deficit for the year 2012 stands at seven percent. According to the Profit Confidential expert, these numbers are warning Americans of higher taxes and possible austerity measures in the near future.
“Increasing budget deficits is not good for any country,” states Lombardi, noting that this is going to leave America with fewer choices to get out of its massive debt hole. “The issues in the U.S. economy are becoming similar to the ones in the eurozone countries. For example, in those countries, government spending simply was greater than tax revenue, hence the basic reason behind the deficit.”
In the article “America’s Only Choices Left: Raising Taxes, Introducing Austerity Measures,” Lombardi notes that while the federal budget deficit decreased in 2012 over 2011, for the first month in the current fiscal year of 2013, which ended October 31, the deficit increased by $120 billion. He reports that this is an increase of almost 22% from the same month last year. (Source: U.S. Department of the Treasury, November 13, 2012.)
The Profit Confidential expert notes that in the U.S., 2012 marked the fourth year in a row that the government experienced an annual deficit above $1.0 trillion; Lombardi expects the budget deficit of the federal government to continue in the annual $1.0-trillion range.
Lombardi concludes by noting that the financial situation is poor in the U.S. and expenses are increasing daily, which suggests that the U.S. economy doesn’t have any chance of improving anytime soon.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.