Monday, October 19, 2009

Current Update on the Economic Crunch ... to come...

From a letter by Hayman Advisors LLC we have the following extract….Daniel Hannan a member of the European Parliament said the following….

You cannot spend your way out of a recession or borrow your way out of debt….

See the whole article here….http://www.scribd.com/doc/20660727/Hayman-October-Letter

So what exactly are we doing … well we are doing something that’s true…. better I think that the 1920’s depression when very little was done and most of it… too late..

So lets look at the US Economy today… where debt is at almost 40% of spending, some might say we are reaching a tipping point – running a war on two fronts is not helping – thought I might mention that – its very much time to get out of Iraq – stay in Afghanistan…which may tip the US economy into hyper-inflation….  cannot happen here….. I think thats called denial….

Australia is in a similar place with a budget of about AUD$350 Billion and deficit of A$50 billion growing…. perhaps they should talk to Daniel Hannan…?

Full details of the Australian Budget papers can be found here  http://www.budget.gov.au/2008-09/content/fbo/html/part_1.htm

Tags: Economic+crunch+to+come

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