Published By Banyan Hill Publishing | | | | Published By Banyan Hill Publishing | | | | Banyan Nation, If you’re like me, you’re ready for the words “debt ceiling” to be permanently erased from your memory. This entire experience has been hard to stomach, and I’m tired of the grandstanding and theatrics.
That said…
Might something good actually come of all this?
I’ll admit, I’m skeptical. But let’s see what the data says. A History of Deficits  (Click here to view larger image.) In fiscal years 1998, 1999 and 2000, we actually ran budget surpluses.
Remember those days? That was nice…
Then the tech bust, a recession, the Bush tax cut and two wars all conspired to push deficits — to what was then a record at just over $400 billion by 2004.
As the economy picked up and spending on the wars stabilized, the deficit shrank to “only” $160 billion by 2007 … which was still a lot of money by our less-profligate standards.
And then it all fell apart.
The 2008 meltdown happened, tax revenues collapsed, emergency spending shot higher and we ended up with a $1.4 trillion deficit. It stayed at roughly those levels through the end of the Bush presidency, and the first two years of the Obama presidency.
The last major debt ceiling fiasco was in 2011. Obama and the Republican-controlled House of Representatives agreed to a deal that did, ever so modestly, hack away at the deficits. By 2015, deficits had shrunk back to just over $400 billion.
Now remember, just 11 years earlier, a $400 billion deficit was considered appalling. But when you’re starting $1.4 trillion in the hole, it’s a major improvement.
When Republicans swept both houses of Congress and the presidency in the 2016, deficits started sliding again. By 2019, the deficit was close to a trillion dollars again. And then the pandemic happened, and the deficit ballooned to over $3 trillion.
By 2022, it had improved to “only” $1.4 trillion … about in line with the 2008 blowout low. The 2023 Outlook What conclusions can we raise from this fraught history?
Neither political party seems to be capable of balancing a checkbook when left to their own devices.
Total government dysfunction seems to be the only thing that forces something resembling fiscal sanity. The 2011 debt ceiling fiasco was embarrassing, but it did at least somewhat slow the growth of government spending.
And an improving economy, with the improving tax revenues that come with it, managed to slowly close the deficit gap.
Could we see a repeat this time around?
Well, spending cuts alone won’t balance the budget. We’ll need the economy to play ball too, as a booming economy generates more tax revenue. And in the immediate short-term, I still think a recession is likely.
But if the experience of a decade ago is any indication, it really might get better from here in 2023.
Of course, we’re not going to sit around and wait for the government to clean up its mess. We’re busy looking for investment opportunities in everything — from artificial intelligence to “old reliable” oil and gas.
So let’s see what the team has been up to this week. | | | It has a code name within the walls of Apple’s Cupertino headquarters — “Project Titan.” Supposedly one of Steve Jobs’ final projects … a new electric vehicle (EV) that would do for the automotive world what the iPhone did for personal devices. The next generation of EVs, including Project Titan, will get their power from a battery the size of your iPhone. Click HERE for the full story. | | | Weekly Recap  - Called It! Chips + AI = Best Stocks for Your Portfolio
Nvidia made headlines when its last earnings release sent the shares skyrocketing 22% on the week. This can be explained in two words: artificial intelligence. Microchips are the new “AI superpower,” as the processing power needed to fuel the rise of AI.
Virtually every major company in America is exploring ways to incorporate AI into its business model. And this chipmaker is one of the best positioned to profit from this mega trend.
- If the Banking Crisis Isn't Over…
What if the banking crisis isn't over? Are you prepared? Find out how you can invest in a special trade that can withstand a volatile market...
- Banks Are Dancing Their Way to Bigger Losses
Here in the U.S., the question of what makes a recession isn't so clear. There are six indicators, as the Federal Reserve outlines it.
While we continue to speculate if we’re headed for a recession today, the banks are having a hard time. But Adam O’Dell has found a way to prepare for market volatility — with a list of 282 American financial stocks he thinks you should sell now.
- Buy the New “Black Gold” Opportunity
You may not realize it, but oil products (petrochemicals) are used in every sector. So when you invest in oil, you invest in EVERY industry in every sector. And this #1 oil stock is the new "black gold"...
Tune In to Our Podcast!  Mike Carr will be joining me on The Banyan Edge Podcast on Monday to talk about the ticking timebomb in the commercial real estate sector.
Even if you don’t own a single nickel in commercial real estate investments, this is potentially a major deal to you because your bank likely has massive exposure to the sector.
Mike will talk through the risks with me, as well as pointing out some potential opportunities to profit. Be sure to tune in, as Mike is always full of fun facts that have a way of morphing into actionable trades!
Until then,
Charles Sizemore
Chief Editor, The Banyan Edge | | | A small device can completely change the electric vehicle market — leading to mass adoption... Coined the “Forever Battery,” it could soon last 1,000 miles on a single charge. Quadruple what’s currently available. Click here for details. | | | Get The Banyan Hill App And start experiencing that "total wealth" freedom for yourself. | | | (c) 2023 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096) Legal Notice
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