Monthly Archive:: November 2009

Using jobs to lure Taliban

[Skip to the end] At least they are starting to understand the power of employment. Too bad they haven’t figured out how to do it in local currency. Wonder how this will sell politically to unemployed voters here in the States: Afghans Offer Jobs to Taliban Rank and File if They Defect ...Read More

Bernanke quote revisited

[Skip to the end] “Under a paper-money system, a determined government can always generate higher spending and hence positive inflation.” – Ben Bernanke It also has to know which buttons to press. QE and lower interest rates are not the buttons for that job. The button is the budget deficit, and they ...Read More

Gvt Risks Credibility By Ignoring Yen

[Skip to the end] Buying $ is off balance sheet deficit spending and the easiest avenue politically. If anything I am surprised they let it go this far. Their history of their economic model has been to buy $ to support exports rather than cutting taxes to support domestic private sector demand. ...Read More

FNMA tightens lending requirements

[Skip to the end] That nagging feeling that 0 rates are deflationary keeps lingering. The following FNMA news might be even more deflationary than the Dubai news over time. I wonder if Congress was involved in this decision, as FNMA is a public/private partnership: Fannie Mae to Tighten Lending Standards: Report Oct. ...Read More


[Skip to the end] Karim writes: Data ‘mixed’, with durables and income weak, but claims strong. New capital goods orders ex-aircraft and defense -2.9%; 3rd drop in 4mths Personal income 0.2%, but wage and salary income flat and down 3.6% y/y Core PCE deflator +0.2% m/m and 1.4% y/y Initial claims down ...Read More

Krugman on ‘The Phantom Menace’

[Skip to the end] Thanks, problem areas in yellow that tend to discredit what he’s saying. He needs our help bad! The Phantom Menace By Paul Krugman Nov 22 (NYT) — A funny thing happened on the way to a new New Deal. A year ago, the only thing we had to ...Read More

Consumer Confidence

[Skip to the end] Not looking good. Looks like something bad did happen back in July. The combo of modestly rising GDP, with rising unemployment due to productivity is very unattractive politically. Deficit myths keep them doing anything substantive. Still wouldn’t surprise me if they announce something dramatic, like they are going ...Read More

Orszag attending Obama Afghan meetings

[Skip to the end] Yes, the deficit reduction polls are likely having a lot of influence on policy going into the 2010 elections and are a major obstacle to any kind of meaningful recovery. And, worst of all, it was reported that Budget Director Peter Orszag was also sitting in on these ...Read More

Galbraith on what can be done

[Skip to the end] Old Mistakes Die Hard As part of the Roosevelt Institute’s 10-part series on the Jobs Crisis, running on the New Deal 2.0 blog from Nov. 12-25, I was asked to reflect on what can be done to get Americans working again. Here’s my take. I’m tempted to say ...Read More

Existing Home Sales

[Skip to the end] Wonderful, we contrive policy to drive up unemployment and foreclose vast numbers of people out of their homes at firesale prices so others can move in with subsidized down payments to buy them. The lower prices could be a sign of bid hitting rather than offer lifting. U.S. ...Read More