One of the interest income channels
Posted by WARREN MOSLER on January 30th, 2012
This entry was posted on Monday, January 30th, 2012 at 3:31 pm and is filed under Fed, Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
January 30th, 2012 at 6:23 pm
Yes, $400 bln in interest income removed since 2008.
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Save America Reply:
January 30th, 2012 at 8:14 pm
@mike norman, On a personal note Mike, as your portfolio now yields less, have you cut back on spending? Do you get the cheap dog food now for your bulldog instead of the name brand purina? ;) I talked to kid dynamite and he isn’t going to vegas as much as he used too.
http://www.businessinsider.com/whats-up-with-americas-growing-love-affair-with-the-dollar-store-2012-1
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January 30th, 2012 at 10:46 pm
Outcome? So much talent, going to waste, completely underutilized
http://www.guardian.co.uk/world/2012/jan/28/europes-lost-generation-young-eu
(thanks Russ Huntley)
It may someday be known as the Austerity Gulag (SansWitsYnitzken).
[great pen name for an economics satarist.]
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January 31st, 2012 at 3:29 am
Nice chart, Warren. I think it’s a bit more than that, however. I created a chart that I think shows a more connected relationship in the decline of personal interest income. Certainly on the chart it looks like the increase in excess reserves (driven by QE obviously) had an effect, but one thing in particular led the decline where it looks like the increase in excess reserves was in response/reactionary, which we know is the case. I’ll post it via FB.
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WARREN MOSLER Reply:
January 31st, 2012 at 7:21 am
thanks!
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macrosam Reply:
January 31st, 2012 at 10:22 am
@WARREN MOSLER,
Not sure if you saw it but it’s nothing you don’t already know, just nice to see it on a chart.
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January 31st, 2012 at 4:13 pm
Can someone please post a translation of PIOCINT for those of us who don’t speak Bloomberg? Google wasn’t terribly helpful and FRED didn’t have any data streams by that code.
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macrosam Reply:
January 31st, 2012 at 4:48 pm
@Brian,
Personal interest income component of personal income.
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February 1st, 2012 at 1:32 pm
I have a question about savings rate and inflation. Is there a layman’s explanation how the two relate to each other?
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WARREN MOSLER Reply:
February 1st, 2012 at 4:21 pm
the price level is ultimately a function of prices paid by govt when it spends
savings of dollars (globally) is equal to the govt’s deficit spending.
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