Monthly Archive:: September 2012

Draft for Oct. 26 Rome Presentation

See here for Rome presentation. Comments welcome! (Mario Draghi may be on the panel with me) ...Read More

oil trader skirting sanctions

World’s Largest Oil Trader Skirting Iran Sanctions Sept 26 (Reuters) ...Read More

Columbia today, home Wed

Will be doing this Tuesday September 25: MODERN MONEY AND PUBLIC PURPOSE ...Read More

The Concord Coalition Honors Rep. Schwartz’s Leadership on Fiscal Issues

On Sep 22, 2012 8:31 AM, “Art Patten” wrote: Dear Congresswoman, As always, we appreciate your hard work and everything you do for your constituents. But I can’t bring myself to congratulate you on the award from the Concord Coalition, an organization that unwittingly works to undermine public purpose. Like so many ...Read More

U.K. Deficit to Exceed Greece’s Next Year, Sunday Times Says

Yet no funding crisis… U.K. Deficit to Exceed Greece’s Next Year, Sunday Times Says Sept 23 (Bloomberg) — U.K. deficit will be £126b ($204b), or 7.8% of GDP, in 2013-14, Times says, citing Morgan Stanley analysis. Greece’s deficit to be 6.3%, Italy’s 1.7%, Spain’s 5.8%: ...Read More

QE follow up

It’s been about a week, and the initial reactions are already wearing off and markets settling in. The lasting effects are those of the income lost to the economy as the Fed earns the interest on the securities it buys instead of the economy. This reduces the federal deficit and is a ...Read More

Mafin 2012 Genova, Italy presentation

Very good! One suggestion, in caps: In reality, BECAUSE AN OVERDRAFT AT A CENTRAL BANK *IS* A LOAN FROM THAT CENTRAL BANK, central banks have no option other than supplying the amount of reserves banks require to settle payments through standard operations, bilateral lending, or intra-day overdrafts. Yet, it can unilaterally set ...Read More

JPM Household wealth report

The unemployment line is the evidence the federal deficit is too small given conditions. This at least partially explains why the full employment deficit is much larger this time around: From JP Morgan: Executive Summary Households lost $16 trillion worth of wealth during the crisis from late 2007 to early 2009, but ...Read More

Crude price update

It’s about what price the Saudis want. No telling what they are thinking, but the demand for their output remains high at about 10 million bpd. Note that WTI supply tightened, indicating the Seaway pipeline is working down the oversupply in Cushing. And refiners are coming back online after the storm shutdowns: ...Read More

ECB’s Weidmann Says Unlimited Money Creation Risks Inflation

Only with fixed fx, where ‘money creation’ is better described as ‘deficit spending’. Shame shame shame. ECB’s Weidmann Says Unlimited Money Creation Risks Inflation By Jeff Black and Jana Randow September 18 (Bloomberg) — Bundesbank President Jens Weidmann said central banks that promise to create unlimited amounts of money risk fueling inflation ...Read More