By Robert Romano The past 3 years the $16.7 trillion national debt has grown at an average rate of 10.5 percent, while nominal Gross Domestic Product (GDP) has averaged just 3.85 percent. This is one of the primary reasons why the debt has soared to 103.8 percent […]

By Robert Romano — In an exclusive interview with nationally syndicated talk show host Sean Hannity , House Speaker John Boehner all but ruled out using the debt ceiling as leverage to pass the House Republican proposal to balance the budget within 10 years. “Do you want to risk the full faith and credit of the United States government […]

By Robert Romano — All the economic babble cannot hide one simple fact; if inflation hits, the Federal Reserve may be powerless to use interest rates as a device to rein it in.  The central bank has sacrificed that policy tool in order to make sure the […]

By Robert Romano — Sen. Rand Paul’s (R-KY) historic filibuster against the new Director of the Central Intelligence Agency (CIA) John Brennan has succeeded in its principal aim, which was not to defeat his nomination, but to answer a very specific question. In a Feb. 20 letter to Brennan , Paul had asked, “Do […]

By Robert Romano — When Republicans won the House of Representatives in 2010, largely thanks to the inspired efforts of grassroots conservatives and tea party activists, they made a so-called “Pledge to America” that this time would be different. That this would not be the same majority that had lost […]

By Robert Romano — Another debt limit shocker. Apparently under current federal law, if the debt ceiling — now suspended until May 19 — is reached, the U.S. Treasury gets to decide for itself whether or not it feels like defaulting. In other words, it would be […]

By Robert Romano — Somehow, despite sequestration, the sun rose today, and it will set. Schools opened as scheduled. The children were still picked up and dropped off by their buses. Hospitals, police, and firefighters all remained on call should the need arise. Planes did not fall […]

By Bill Wilson — $54.9 billion. That is how much the Federal Reserve holds in capital to back up its $3.1 trillion balance sheet — a ratio of just 1.8 percent. That’s a pretty small margin for error, especially if the central bank were to ever take any losses on its […]

By Robert Romano — In a move that likely makes grassroots conservatives and tea party members wonder why to bother voting Republican at all, the Virginia General Assembly has approved a budget with little opposition that implements a 3.5 percent wholesale gas tax,  that will rise every year with inflation, and an increase in the sales tax from 5 to […]

This is kind of funny. But really scary. On Treasury’s “debt subject to the limit page,” you can see where in time the debt ceiling was eliminated/suspended. For reference, under the most recent debt deal, the debt ceiling has been suspended until May 19. Our […]