1.0Verbank Advisors & Agriculturehttps://verbank.luverbankfarmshttps://verbank.lu/author/verbankfarms/rich600338<blockquote class="wp-embedded-content"><a href="https://verbank.lu/us-brazil-financial-news-2-12/">US + Brazil Financial News (2/12)</a></blockquote> <script type='text/javascript'> <!--//--><![CDATA[//><!-- /*! This file is auto-generated */ !function(c,d){"use strict";var e=!1,n=!1;if(d.querySelector)if(c.addEventListener)e=!0;if(c.wp=c.wp||{},!c.wp.receiveEmbedMessage)if(c.wp.receiveEmbedMessage=function(e){var t=e.data;if(t)if(t.secret||t.message||t.value)if(!/[^a-zA-Z0-9]/.test(t.secret)){for(var r,a,i,s=d.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),n=d.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),o=0;o<n.length;o++)n[o].style.display="none";for(o=0;o<s.length;o++)if(r=s[o],e.source===r.contentWindow){if(r.removeAttribute("style"),"height"===t.message){if(1e3<(i=parseInt(t.value,10)))i=1e3;else if(~~i<200)i=200;r.height=i}if("link"===t.message)if(a=d.createElement("a"),i=d.createElement("a"),a.href=r.getAttribute("src"),i.href=t.value,i.host===a.host)if(d.activeElement===r)c.top.location.href=t.value}}},e)c.addEventListener("message",c.wp.receiveEmbedMessage,!1),d.addEventListener("DOMContentLoaded",t,!1),c.addEventListener("load",t,!1);function t(){if(!n){n=!0;for(var e,t,r=-1!==navigator.appVersion.indexOf("MSIE 10"),a=!!navigator.userAgent.match(/Trident.*rv:11\./),i=d.querySelectorAll("iframe.wp-embedded-content"),s=0;s<i.length;s++){if(!(e=i[s]).getAttribute("data-secret"))t=Math.random().toString(36).substr(2,10),e.src+="#?secret="+t,e.setAttribute("data-secret",t);if(r||a)(t=e.cloneNode(!0)).removeAttribute("security"),e.parentNode.replaceChild(t,e)}}}}(window,document); //--><!]]> </script><iframe sandbox="allow-scripts" security="restricted" src="https://verbank.lu/us-brazil-financial-news-2-12/embed/" width="600" height="338" title="“US + Brazil Financial News (2/12)” — Verbank Advisors & Agriculture" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe>UNITED STATES   The market turmoil was the event last week. Financial conditions tightened considerably, expectations worsened, and risk aversion increased. The pain to investors was real. It is not clear, however, that the ripple effects reached the real economy. It is, anyway, too soon to tell; and, unless the shock persists, the impact will likely be small. Far more significant for its impact on growth and macroeconomic stability was the other big event last week, namely, the budget deal. In search of short-term political gains, absent a stabilizing executive, Congressional leaders threw away decades of fiscal caution, and ushered-in a return to large deficits and mounting debt burdens. The increase in spending comes on top, of course, of the fiscally irresponsible tax cuts enacted at the close of 2017. Together, they could produce deficits in the range of 5-5.5% of GDP by 2019-20. Estimates now show the deficit approaching $1.1trillion in FY2019 and continuing to grow unabated thereafter. Consider the maturing debt from the existing stock, and new debt issued to finance the new fiscal gaps. Together, these flows, plus the deficit, would produce gross funding requirements of $3.1trillion in FY2019 —14.2% of forecasted GDP. Consider further the saving capacity […]