US Economy

• President Obama proposed $3.83 trillion budget ($1.56 trillion deficit), recommended increasing taxes on energy, banks, and families earning more than $250,000.
• US defense spending is about 75% of the country’s personal income taxes. Question: Guns or butter?
• Bill Gross of Pimco says “the new norm is on track”…We are deleveraging vs. leveraging and regulating vs. deregulating.

Global

• George Soros said that there’s “no attractive alternative” to the US dollar as a reserve currency.
• Russia’s economy shrank the most on record in 2009 after the price of oil slumped 77% from peak to trough.

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Angus Watt

Managing Director, Individual Investor Services