Featured in John Mauldin’s Guru Blog on EQUITIES Magazine Website
John Mauldin’s latest post,”Muddle Through, R.I.P?”, defines a Muddle Through Economy as one of slow growth and a slack employment environment. Thus, Mauldin analyzes how likely we are to muddle through in the face of $1.5 trillion and larger deficits.
Mauldin closely examines the similarities between U.S. and Japanese debt-GDP ratio and how though Japan has been running massive government deficits today and plans to continue doing so for a long time, it is hazardous for us to acquire the same mentality as records clearly indicate Japan has not had growth for nearly two decades.
The current economic leadership wants to solve the problem of too much debt with even more debt. If we continue to run massive deficits, we run the risk of catching Japanese disease- a decade-long (or longer) period of slow growth and high unemployment, especially since our population is growing.
Unless the deficit comes under control at some point, we face the real prospect of catching Japanese Disease and suffering yet another lost decade.
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About John Mauldin:
John Mauldin is the President of Millennium Wave Advisors, LLC (MWA) which is an investment advisory firm registered with multiple states. John Mauldin is a registered representative of Millennium Wave Securities, LLC, (MWS) an NASD registered broker-dealer. MWS is also a Commodity Pool Operator (CPO) and a Commodity Trading Advisor (CTA) registered with the CFTC, as well as an Introducing Broker (IB). Millennium Wave Investments is a dba of MWA LLC and MWS LLC.
About EQUITIES Magazine:
Since 1951, EQUITIES has served both retail and institutional investors by examining industry trends, analyzing strategies and opportunities, and profiling financial leaders and emerging public companies. Its global audience increased dramatically after the launch of its European and digital versions, as well as its website, which provides free real-time market quotes and a free customizable, real-time portfolio-management interface. EQUITIES is also one of a select group of publications available on the Apple iPhone.
