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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Archive for January 22nd, 2013

CSRCs Guo Says Intervention in Stock Market Necessary: Xinhua

Posted by WARREN MOSLER on 22nd January 2013

Not that a stock market is ‘necessary’. And not to forget that a 30% corporate income tax, as in the US, is at least as good as owning 30% of all taxable enterprises. If govt, want’s a larger share of corporate profits, it can just hike the tax rather than buy the stock.

If govt cares about stock prices, the question has to be why. If it’s because lower stock prices cause people to spend and consume less out of fear, you’d think cutting taxes on people working for a living would be more attractive than the govt buying stocks? If it’s due to an attack on a fixed fx currency, like HK, I’d rather float the currency than buy stocks.

CSRCs Guo Says Intervention in Stock Market Necessary

January 22 (Bloomberg) — China Securities Regulatory Commission Chairman Guo Shuqing said at the national securities
and futures supervision meeting that its necessary to intervene in Chinas stock market at key moments, the official Xinhua
News Agency reports.

* Chinas stock market is not mature, Guo was cited as saying

Posted in China, Equities, Government Spending | No Comments »

BOJ Adopts Abes 2% Target in Commitment to Ending Deflation

Posted by WARREN MOSLER on 22nd January 2013

This of course fundamentally does nothing of consequence for aggregate demand or the level of the currency. The extra deficit spending due to start in April is what will help a bit.

BOJ Adopts Abes 2% Target in Commitment to Ending Deflation

By Toru Fujioka and Masahiro Hidaka

January 22 (Bloomberg) — The Bank of Japan set a 2 percent inflation target and shifted to Federal Reserve-style open-ended asset purchases in its strongest commitment yet to ending two decades of deflation.

Posted in Government Spending, Inflation, Japan | No Comments »

World Unemployment to Hit Record High in 2013

Posted by WARREN MOSLER on 22nd January 2013

World Unemployment to Hit Record High in 2013: ILO

By Katy Barnato

January 22 (CNBC) — World unemployment could top record levels this year and continue rising until 2017, the International Labour Organization (ILO) said on Tuesday in its annual employment report.

2009 currently stands as the worst recorded year for world unemployment, with 198 million people across the globe without work.

In its 2013 Global Employment Trends report, the ILO forecasts unemployment numbers will rise by 5.1 million in 2013 to reach 202 million, topping 2009′s record.

The report also predicts unemployment will rise further in 2014 to reach 205 million.

Posted in Employment | No Comments »