The following article from the Australian Financial Review shows the fundamentals of the fiscal strength in the United States. What does this mean for your portfolio?
The federal budget deficit fell precipitously to $US680 billion in the 2013 fiscal year from about $US1.1 trillion the year before, the Treasury Department said. That is the smallest deficit since 2008, and marks the end of a five-year stretch when the country’s fiscal gap came in at more than a trillion dollars a year.
The report comes days before the White House is expected to release a new budget. Democrats have said that the still-tepid recovery requires government investment along with commitments to reduce deficits in the long term while also emphasising the rapidly falling budget gap.
Republicans have long said that Democrats have proven poor stewards of the economy, overseeing a period of sluggish…
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