Tag Archives: national debt

Debt Limit – A Guide To American Federal Debt Made Easy

Posted March 22, 2012 by admin. tags:Tags: ,


Our national debt is a very serious matter but because it is such a large number it takes it out of the realm of reality and makes it difficult to understand. This short video helps put it into perspective.

Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results. 

The First Break?

Posted March 15, 2012 by admin. tags:Tags: , ,
Chess Game

Written by Nathan White, Chief Investment Officer, Paragon Wealth Management

Is this the first move in the long awaited end to the bond bull market or just a short-term blip? Treasury yields shot up yesterday after comments by the Federal Reserve seemed to indicate that since the economy is picking up there would not be a need for another round of bond purchases.  Interest rates have been pushed to historic lows due to slow economic growth, central bank purchases, flight to safety moves (i.e., European credit fears), and general investor aversion to equities. Due to these factors the U.S. government has had an easy time financing its large budget deficits which has pushed debt levels up drastically. Eventually these government actions could lead to significant inflation and/or a fiscal crises such as Europe is experiencing which would be significant negatives for bonds.

Massive amounts of investor money has been flowing into bonds and they posted stellar performance last year. Many (including us) have been calling for the end of the 30 year bull market in bonds because with rates at near zero they simply can’t get any lower. The difficult part is trying to call when rates will start moving back up. Over the past 3 years many have placed unprofitable trades trying to time the end of the bond bull market.  The idea is right but the timing (as always) is difficult to pull-off.  Just because rates are low doesn’t mean that they will jump back up drastically.  Many factors (i.e., baby boomers retiring, continued central bank action, credible deficit reduction actions, etc.) could keep a lid on rates for a while to come.  Perhaps it will just be a slow inexorable climb. So has the tide started to shift?….stay tuned.

Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results. 

 

American Finances

Posted June 17, 2009 by admin. tags:Tags: , , ,
The National Debt Clock

Written by Nathan White, Paragon Chief Investment Officer

photo by agilitynut

There is currently a lot of talk about what the implications will be for all of the government involvement in the economy. To help put things into perspective I thought it would be good to take a look at the current condition of the country’s finances. I am not a doom and gloomer, but I think it is always helpful to know the facts in order to put things into perspective.

  • $56.4 Trillion – Current Liabilities and Unfunded Promises of the Unites States Government

This equates to $483,000 for every American household!

  • $11 Trillion – Current National Debt

         50% held by foreign countries and the other half held by the public

  • $1.7 Trillion – Projected 2009 Budget Deficit

The largest as a share of GDP since World War II

In order to service all of these liabilities the government will have to take more from the private sector which means slower economic growth than there otherwise would have been.

It does not mean that we wont grow (which is why I’m not a doom and gloomer!) but just that the growth will come at a slower pace on average.

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