Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Economics

Harare. We Have a Problem


We’ve argued that the U.S. is in deep long-term economic trouble because of the sharp uptrend in government spending and debt, but is not at a tipping point at which bond market vigilantes and currency vigilantes would suddenly sell U.S. assets. Our view is that U.S. household assets (i.e. private sector ownership) is still large enough compared to total U.S. debt that the problem is one of dissipation and U.S. underperformance rather than imminent crisis like Europe’s periphery.

–David Malpass, Fed Data Shows Equities Lifted U.S. Assets More Than Government, Encima Global LLC, 8 March 2012.

Steve Hanke, of Johns Hopkins University, is one of a few true experts on economic meltdown. One recent focus of his has been Zimbabwe.

Greece is not Zimbabwe. The United States of America is not Zimbabwe. But, there are lessons to be learned.

The Greece two-year yield has a glide path of a moon shot. (260 percent at last sighting somewhere down range of Cape Canaveral.)

Greece survives another “imminent” day. And, America? Beware dissipation. “Harare. We have a problem.” Discuss.

Keene hosts Bloomberg Surveillance 7-10 a.m. ET on 1130 AM in the New York metro area and nationally on SiriusXM 113.

LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus