Monthly Archive:: June 2012

Small Business on Obamacare: No Reason to Hire or Invest

Business hires to service customers and expand when there’s enough aggregate demand to sustain sales at profitable prices. With or without Obamacare. Small Business on Obamacare: No Reason to Hire or Invest By Patricia Orsini June 28 (CNBC) — Small business owners, who have been waiting for the Supreme Court’s decision on ...Read More

Italian Business Confidence Unexpectedly Rises to 88.9 in June

Another glimmer of hope in a June number that deficits are sufficient for stability: Italian Business Confidence Unexpectedly Rises to 88.9 in June June 27 (Bloomberg) — Italian business confidence unexpectedly rose in June from the lowest level in almost three years. The manufacturing-sentiment index rose to 88.9, from a revised 86.6 ...Read More

Euro zone economy

After weak April and May numbers, I’ve been on the lookout for possible hints that euro zone economies may now be flattening. Austerity tends to drive down demand which also causes deficits to increase to the point where they stabilize GDP. Therefore, if the euro zone just leaves their fiscal policies alone ...Read More

Demand leakages- the 800lb economist in the room

I can’t say I’ve seen anyone in the deficit debates talking about the demand leakages? Not a mention in the mainstream press, financial news media, or any of the thousands of economic reports? That’s like discussing the right horsepower for a truck or an airplane without any consideration of the weight of ...Read More

Endorsement of Mosler’s 3-point plan

Endorsement of Mosler’s 3-point plan After hearing an explanation of Modern Monetary Theory by Warren Mosler, Occupy Dallas endorses his remedy for our nation’s current economic condition: 1-cut FICA taxes to end this regressive policy and allow greater spending. 2-disbursement of federal funds to states on per-capita basis 3-guaranteed “transitional” employment for ...Read More

Germany rebuffs Obama’s advice on euro crisis

Until they all get ‘in paradigm’ the 99% don’t have a chance. Germany rebuffs Obama’s advice on euro crisis June 25 (AP) — Germany’s finance minister is rejecting U.S. President Barack Obama’s calls on Europe to move faster in fighting its debt crisis, telling him to get the American deficit under control ...Read More

N.Y. Times letter

Letters: How to Mend Trust in the U.S. Economy June 23 (NYT) To the Editor: Re “Broken Trust Takes Time to Mend” (Economic View, June 17): Tyler Cowen argues that the “slow cure” for our economic malaise is to allow asset prices, wealth, trust, etc. to slowly rise. He states that the ...Read More

Enough of the bookkeeping, Mr Osborne

From Sam Brittan. Veteran FT writer. A permanent secretary under an earlier Labour administration once asked me what I thought were the limits to permissible Budget deficits. My answer was: “Up to the point where the gains to output and employment are offset by the inflationary effects of a fall in the ...Read More

Mike Norman Economics: General theory and special cases in Modern Monetary Theory

General theory and special cases in Modern Monetary Theory ...Read More

Early Thought follow up… A conversation with Warren Mosler– great investor, thinker, sports car manufacturer, author, blogger….

Please click on the link below to listen to a conversation with Warren Mosler. Topics include: Demand leakage (how to fix end-demand), Fed Policy (QE is counterproductive) and overall market/econ outlook for US, Europe and China. Please click here for the audio ...Read More