A New Bullish Era Under Biden Administration

The fiscal and economic state of play in the United States of America:
- Undoubtedly, the new president and congress are inheriting a challenging fiscal and economic landscape.
- The inauguration of the 46th president of the United States - Joe Biden on Wednesday, was the week’s highlight.
- The Biden Administration policies are favorable for precious metals’ prices.
- The 1.9 Trillion American Rescue Plan, released on January 14th, is just the beginning of proposed spending initiatives.
- The economy is yet to fully recover from the pandemic, with the U.S. unemployment rate reaching an all-time high post-WWII in 2020 and remaining high in 2021. This economic damage is forecasted to sustain for an extended period.

Unemployment Rate (%)

(Source: The fiscal and economic state of play, Peter G. Peterson Foundation, pgpf.org)

Real GDP (Trillions of Chained 2012 Dollars)

(Source: The fiscal and economic state of play, Peter G. Peterson Foundation, pgpf.org)

The responses undertaken to counter the adverse economic damage were necessary; however, the budget deficit for F.Y. 2020 was three times the year before.

12-Month rolling sum of revenues and outlays (trillions of dollars)

(Source: The fiscal and economic state of play, Peter G. Peterson Foundation, pgpf.org)
 
As a result, Joe Biden has entered the office with the highest Debt-to-GDP ratio since the 1945-53 Truman administration.
 
Debt Held by the Public (% of GDP)

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