Monthly Archives: July 2011

MMT to Congress: You are the scorekeepers for the US dollar, not a player!

Imagine a card game, where every entity in the economy is one of the players, and you, Congress, are the scorekeeper. The message here is the difference between being the scorekeeper and being a player. The problem is, you are … Continue reading

Posted in Deficit |

GDP and corporate earnings

As previously discussed, stocks don’t need a lot of GDP growth to do moderately well. Even with weak GDP numbers, high unemployment, a week consumer, weak housing, higher crude prices, moderating export markets, near 0 rates, QE, and a major … Continue reading

Posted in Economic Releases |

What I think I would have done…

Voting to not raise the debt ceiling to authorize the deficit spending to pay for bills already authorized by Congress, to the best of my knowledge, falls under the definition of subversive. Representatives are well aware of the non subversive … Continue reading

Posted in Deficit |

The Fed can prevent default

QE 0: The Fed offers to buy all Treasury securities and coupons at par at maturity

Posted in Fed |

The elders of Jonestown contemplating the Kool-Aid mix

The actual problem with the US economy is the federal deficit is way too small given current credit and global demand. That should be a good thing. Congress should be arguing over whether we need tax cuts and/or spending increases. … Continue reading

Posted in Deficit |

Spain Placed by Moody’s on Review for Possible Downgrade

They all quickly go to junk if the US goes cold turkey to a balanced budget > Spain Placed by Moody’s on Review for Possible Downgrade > 2011-07-29 05:20:32.543 GMT > > > By Maria Ermakova > July 29 (Bloomberg) … Continue reading

Posted in Deficit, EU |

The danger is from the spending cuts, not the potential downgrade

The headlines are all about the risks of default or a too small deficit reduction package causing a downgrade of US debt. And while markets react to those issues, they all miss the point. The consequences of a downgrade to … Continue reading

Posted in Deficit, GDP, Government Spending | Tagged |

Kelton responds to the Progressive Caucus Co-chair

Maddening! The Clinton surpluses were driven by the bubble and unsustainable private sector deficits. When the bubble burts, stocks crashed, the economy went into recession, and the surplus quickly reversed itself. It was only AFTER the government’s budget moved … Continue reading

Posted in Congress, Deficit, Government Spending | Tagged , , , |

More on Jobless Claims

From Goldman, this talk is making the rounds: More on Jobless Claims Some commentators are attributing the improvement in weekly claims to the fact that this year, the retooling of Auto plants have occurred over one week as opposed as … Continue reading

Posted in Employment |

DeMint and Erickson to Boehner : HOLD THE LINE

Says it all: Boehner-Reid Debt Plan By Sen. Jim DeMint July 26 — I have troubling news. I’m very careful about criticizing my party’s leaders, but what is happening in Washington right now cannot be ignored. House Speaker John Boehner … Continue reading

Posted in Deficit, Government Spending, Obama, Politics, Treasury, USA | Tagged , |