Tuesday , November 5 2024
Home / The Angry Bear / Tillerson Economics and the Saudi Arm Deal

Tillerson Economics and the Saudi Arm Deal

Summary:
ProGowthLiberal concludes ‘no net increase’ on Saudi Arabian arms deal: The 9 billion in arms sales is for the next decade amounting to an additional billion in new exports on a per annum basis. So we are talking about only 0.06% of GDP in new exports but this only gets worse if we take Tillerson at his word that as the Saudis spend more on their own defense, we spend less. In other words, exports rise by billion per year and Federal purchases fall by billion per year. Good news from a deficit hawk perspective but no net increase in U.S. aggregate demand. So Trump’s “jobs, jobs, jobs” amounts to nothing but his usual political posturing.

Topics:
Dan Crawford considers the following as important:

This could be interesting, too:

Bill Haskell writes Opinion Piece “China’s One-Child Economic Disaster”

Angry Bear writes What Happens When Corporate Places Greater Emphasis on Stock Buybacks Rather than Quality?

Angry Bear writes Why electric cars of the future might be smaller, safer, and fewer

Angry Bear writes Topping up as part of an integrated neighborhood approach

ProGowthLiberal concludes ‘no net increase’ on Saudi Arabian arms deal:

The $109 billion in arms sales is for the next decade amounting to an additional $11 billion in new exports on a per annum basis. So we are talking about only 0.06% of GDP in new exports but this only gets worse if we take Tillerson at his word that as the Saudis spend more on their own defense, we spend less. In other words, exports rise by $11 billion per year and Federal purchases fall by $11 billion per year. Good news from a deficit hawk perspective but no net increase in U.S. aggregate demand. So Trump’s “jobs, jobs, jobs” amounts to nothing but his usual political posturing.

Dan Crawford
aka Rdan owns, designs, moderates, and manages Angry Bear since 2007. Dan is the fourth ‘owner’.

Leave a Reply

Your email address will not be published. Required fields are marked *