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June 8, 2020 | Hong Kong Situation plus America’s Economic Numbers!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian: http://kingdomecon.wordpress.com.

Hong Kong to adopt national security law 'as soon as possible ...
About the Fiscal Challenge
Publishes the Debt Clock (www.usdebtclock.org)

The new national security law of China has created a dire economic situation for Hong Kong. I would suspect that this administrative region will now experience a serious recession and probably a depression. Hong Kong was rated 35th in GDP in 2019 (among all nations) and all this progress could now go down the drain. U.S. policies will make the situation much worse. All this will affect the U.S. over time as Hong Kong as been a popular district for technology growth.

I suspect that the situation caused by this new security law will cause a deterioration in our relationship with Hong Kong and mainland China. All this will also affect America’s growth and prosperity in time. I now sense a ‘cold war’ mentality developing with China and Hong Kong. Will Taiwan be next? This could lead to WW III if this happens. America is setting the table for dire events starting in 2021 and after IMO.

Now let’s look at the NUMBERS which Mr. Trump seems to avoid with his daily tweets and rhetoric. These NUMBERS come from the Peter G. Peterson Foundation which also publishes the DEBT CLOCK: http://www.usdebtclock.org. Personally, I view the Peterson Foundation as a creditable organization for producing our economic NUMBERS. Here is our situation as of today:

1. Federal Debt/GDP = 130.5% (up some 10% in three months)
2. Federal Deficit/GDP = 15.6% (was only 9.27% in 2010)
3. Gross Domestic Product: $19.9 trillion (down from $21.2 trillion on January 1, 2020)
4. Federal/State/Local Revenues
a) $3.2 trillion (going down)
b) $2.0 trillion (going down)
c) $1.3 trillion (going down)
5. Federal/State/Local Debt
a) $25.9 trillion (going up)
b) $1.2 trillion (going up)
c) $2.1 trillion (going up)
6. Actual total unemployment: 33.7 million (that’s 25.5% of our current workforce)
7. Federal Reserve Balance Sheet: $7.2 trillion (that’s up some $3 trillion since January 1, 2020)

Conclusion: The numbers above are not recognized by our esteemed President, Mr. Donald J. Trump. He is ignoring the fundamentals which are foundational to our continuing prosperity. His numbers are the media numbers which are mostly distorted and invalid for evaluating our real underlying problems. The Peterson Foundation has produced the above numbers and this organization has no political favoritism to our esteemed leaders within the Trump administration.

So which set of NUMBERS are more accurate for evaluating our REAL economic situation going forward? I will put my faith on the Peterson Foundation. You can read about this organization here: http://www.pgpf.org. Enjoy this day and let’s watch the markets going forward for new evidence that all is not so well as our esteemed leader tweets. I am: https://kingdomecon.wordpress.com.

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June 8th, 2020

Posted In: Kingdom Economics

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