Step One: Identify the Problem

$1.50: Amount spent by the US government for every $1 inflow

Overall world growth isn't a problem: for example emerging economies are driving growth. The trouble is in the developed markets, such as the United States, and specifically debt. In the US, debt-to-GDP ran up to 370%, and now we're dealing with the ramifications. The US government has borrowed and spent a lot of money to stimulate the economy. A household running its income statement like the US government would be spending $1.50 for every $1.00 taken in.

Sustainable? Not exactly.
Read more in Taking Stock: Market Views from the Go-Anywhere Team.

Source: BlackRock, November 2012

http://www2.blackrock.com/

Prepared by BlackRock

Delivered courtesy Joel W. Grams, CRPC^®, CLTC,

Registered Representative, Financial Planner, 212 Capital Group

38 Main Street Suite 360, Westlake Ohio 44145

(440) 835-4501 Ext 17, jgrams@212capitalgroup.com

The foregoing discussion is general in nature and not intended as specific advice.
New England Financial nor its representatives are engaged in rendering tax,
accounting or legal advice. A qualified professional should be consulted regarding the effect of such considerations on the matters covered in this publication.