Trump Avoid Debt Crisis ? “Extremely Unlikely” – Rickards

Remember to keep an eye on March 15th as mentioned in a previous post, the poison pill left by the Obama administration where “everything will grind to a halt”.

 

The Congressional Budget Office, CBO, estimates that inflation and real GDP will each grow at about 2% per year in the coming ten years. This means that nominal GDP, which is the sum of real GDP plus inflation, will grow at about 4% per year. Since debt is incurred and paid in nominal terms, nominal GDP growth is the critical measure of the sustainability of U.S. debt.

 

Trump Avoid Debt Crisis ? “Extremely Unlikely” says Rickards

The upcoming March 15 U.S. debt ceiling deadline is something that is being largely ignored by markets and most media for now. Despite it being just 9 trading days away. This will change in the coming days and is one of the many reasons why we are bullish on gold.

James Rickards writing for the Daily Reckoning today looks at the important ‘next signal to watch’ and explains that Trump and his advisors believe they can avoid a debt crisis through higher than average growth.

Coming Soon: Gulf War III?

Concerning the contretemps between Saudi Arabia and Iran, a few observations:

• David Goldman thinks Saudi Arabia’s execution of the Shite cleric Nimr al-Nimr and others is a sign of panic among Saudi leadership, and perhaps this is correct. On the other hand, the sacking of the Saudi embassy in Tehran can’t have taken place without the connivance or tacit approval of the Iranian regime (sounds familiar, doesn’t it?), who probably welcomed the provocation of Nimr al-Nimr’s execution.

Chinese Scientists Unveil New Stealth Material Breakthrough

 

Planes and warships just got a lot harder to see with microwave radar.

A group of scientists from China may have created a stealth material that could make future fighter jets very difficult to detect by some of today’s most cutting-edge anti-stealth radar.