Companies Benefiting From Global Trend Towards Government Insolvency
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In search of a solution to ever-expanding debt-to-GDP ratios, Dr Roy van Keulen offers some food for thought, alongside a few ideas of companies likely to benefit
-How will governments improve their debt-to-GDP?
-Taxing lower and middle incomes seems politically impossible for quite some time to come
-Most solutions might simply be to tax the wealthy, reduce spending on healthcare and sell off public assets like roads
By Dr Roy van Keulen
As the US looks close to surpassing an unprecedented debt-to-GDP ratio of 150% (or US$225,000 per US taxpayer), I wanted to explore what happens when governments reach the end of their credit line and are forced to start deleveraging.
President Joe Biden is riding high on a public job approval rating his predecessor could only dream of as Americans are giving the 46
th Commander-in-Chief high marks based clearly on his handling of the COVID-19 crisis. In new polling from Ipsos, Biden enjoys a 58 percent approval rating among registered voters, including 56 percent of independents a critical voting bloc that helped deliver him the presidency. At the highest point in his tenure, former President Donald Trump
Last month, Trump’s former chief pollster Tony Fabrizio released a 27-page, post-mortem campaign report that laid most of the blame for the incumbent president’s loss on his handling of the COVID-19 pandemic. From Politico’s coverage of the report, “The autopsy says that coronavirus registered as the top issue among voters, and that Biden won those voters by a nearly 3-to-1 margin. A majority registered disapproval of Trump’s handling of the virus.”
Donald Trump didn t even try to bring the country together: He thrived on division and made it worse.
Joe Biden has pledged to restore “the most elusive of things in a democracy – unity.” He warned in his inaugural address: “Without unity, there is no peace, only bitterness and fury.” Precisely what we saw on Jan. 6 when Trump supporters attempted a coup d’etat.
Congressional Republicans are not impressed by Biden’s call for unity.
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Conservative commentator Ben Shapiro Tweeted sarcastically, “I’m sure that Democrats are looking forward to healing and reconciliation with the millions of Americans they think are racist, sexist, homophobic bigots. Or alternatively, they’re lying and using ‘unity’ to mean ‘shut the hell up.’”
Fed policies spark more concerns over market collapse
As money continues to pour into Wall Street, sending the three major markets indexes the Nasdaq, the Dow and the S&P 500 to new record highs at the end of last week, there are mounting warnings that the lights are flashing red, signalling that the speculative bubble may soon burst, with major consequences.
The warnings come from within sections of the financial elite, as well as from financial analysts and media commentators, who are fearful of the consequences of the endless pumping of money by the US Fed and other major central banks into the financial markets.