Taxes and beer

[DonPeffers]

 NOV 14 2019     https://www.cnbc.com/2019/11/14/powell-no-day-of-reckoning-coming-for-the-us-anytime-soon.html

Jerome Powell, Federal Reserve Chair (central banking system of USA).

 

KEY POINTS:-

 

Fed Chairman Jerome Powell does not see signs of bubbles brewing in what he called “sustainable” markets.

He also says the national debt and deficit do not pose any immediate threats for a “day of reckoning.”

Powell makes his comments during his second day of congressional testimony on Capitol Hill.

 

'Amid a roaring stock market and ever-increasing levels of corporate and government debt, Federal Reserve Chairman Jerome Powell said Thursday he does not see signs of bubbles brewing or immediate dangers being posed by trillion-dollar deficits.

 

He added that the dollar’s status as the global reserve currency is helping forestall any trouble from the nation’s growing debt load, which just surpassed $23 trillion.

 

US Corporate debt is close to $6.5 trillion, nearly double where it was leading into the financial crisis.  He did issue warnings about several dangers such as a manufacturing slowdown and trade headwinds, and he again called the path of government debt unsustainable. The national debt is expanding at a faster pace than economic growth'.

“I think by definition that makes it unsustainable,” Powell said of the debt. “Our children and grandchildren will be paying more of their tax dollars for interest on the borrowing that we’ve done.”   

 

I agree with jim l above.