Seems the U.S economy may be in some dire straits and we may not even know about it. Stephen Roach is an economist for Yale (one of the most prestigious colleges in the country as long as you don’t ask anyone from Harvard) and he has recently made some startling points about the U.S economy and where it is headed right now.
- “Given this deficit spending, our savings rate is going to go to zero adjusted for inflation, and that’s going to push us into a realm of wider current account and trade deficits,” Stephen Roach, Yale University senior fellow, said Tuesday on CNBC’s “Squawk Alley.”
- “The way I look at the fundamentals is they’re extremely fragile, and we’re kidding ourselves every time there’s a correction to say, well the economy is sound,” Roach said. “It is not sound at all when seen through the lens of low savings.”
- “We’re an accident waiting to happen here, and just by spinning a market correction, saying the fundamentals are sound, and then going down the road of deficit spending,” he said.
While to the layman, that may not seem overly alarming, it is a problem that will only perpetuate itself unless we take this man’s advice now. And the current administration running this country are only making it that much more unmanageable:
President Donald Trump signed a $320 billion spending deal Friday, and his administration released a budget plan Monday that would result in accumulating deficits of $7.2 trillion over the coming decade.
He summed it up best with his closing statements on the matter:
“We’re an accident waiting to happen here, and just by spinning a market correction, saying the fundamentals are sound, and then going down the road of deficit spending,” he said. “That’s a worrisome way to run any economy, let alone our own.”
Amen to that.
*eats cold beans out of a can cuz I’m poor and agree with this