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America Should Copy France When It Comes to Getting its Financial House in Order
Profit Confidential, the popular stock market and economic e-letter, says the U.S. should follow the actions of the French when it comes to getting the economy back on track.
According to Profit Confidential, “On November 10, 2011, Eric Rosengren, President of the Federal Reserve Bank of Boston, said that the Fed should do more to bring down the unemployment rate. Rosengren suggests the Fed buy mortgage-backed securities while the government does more to help halt economic contraction. Comparatively, in France, on November 7, 2011, the government announced plans to increase taxes and cut government spending for a total benefit of $26.0 billion in 2012 in the face of economic contraction. This is France’s second austerity measure of the year.”
Profit Confidential says that when someone like Rosengren suggests that the Fed should buy mortgage-backed securities and that the government should do more, three things come to mind: more money printing, more debt, more of the same for America. It’s been three years since the credit crisis hit. The U.S. government has yet to announce any major austerity measures, such as a significant cut in government spending, despite evidence of new economic contraction in the U.S.
Michael Lombardi, lead contributor to Profit Confidential, writes, “It’s ironic that France, which is a major socialist country, is not taking the route of Keynesian governments and increasing spending to spur its economy in times of economic contraction. The worst-kept secret is that, because of the spreading debt crisis in Europe, France has no choice but to bring its fiscal house in order before interest rates on its bonds start to rise. France national debt to GDP will be about 88% in 2011. The U.S.’s national debt to GDP will be about 100% this year.” Lombardi thought he’d never see the day that a country like France would be on a better path than we here in America are on when it comes to dealing with a national economic contraction.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates, and inflation. To see the video, visit http://www.profitconfidential.com/