New York, NY (PRWEB) September 08, 2012
In the article “Add This to America’s Laundry List,” Michael Lombardi, lead contributor to Profit Confidential and financial expert, reports on a recent Congressional Budget Office (CBO) analysis that shows the “Fiscal Cliff” will plunge the economy into recession within the year. Lombardi argues that the Fiscal Cliff is a bigger issue than perceived by the majority of the American population, and while the Fiscal Cliff will enable the U.S. government to finally lower its budget deficit, it is, unfortunately, bad news for the economy.
In the Profit Confidential article, Lombardi reports that the fiscal policy implemented during President Bush’s period in office, which included cuts in taxes and increased government spending, is set to expire at the end of this year.
“That means higher taxes, cuts in government spending, and a reduced budget deficit,” states Lombardi.
Lombardi believes that these cuts would see the annual U.S. budget deficit fall from seven percent of U.S. gross domestic product (GDP) to four percent of GDP. Citing the CBO analysis, he adds that the Fiscal Cliff will also cause GDP to contract by 2.9% and unemployment to rise up to 9.1%. (Source: “Fiscal Cliff' Has Many Perils,” The Wall Street Journal August 22, 2012; http://online.wsj.com/article/SB10000872396390444812704577605153270293724.html.)
According to the Profit Confidential lead contributor, if government spending is cut and taxes go up, it will lower the budget deficit, but it will also march the economy right back into recession as the budget deficit decreases.
“The evidence shows the outlook for U.S. economic growth is bleak at best,” concludes Lombardi.
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.