Defecit Archive

LA Port Traffic, Greek Banks, Recession Without Financial Crisis

Another weak export report. No mention of the drop in oil prices reduced foreign incomes. LA area Port Traffic: Weakness in June by Bill McBride on 7/20/2015 09:57:00 AM Note: There were some large swings in LA area port traffic earlier this year due to labor issues that were settled on February ...Read More

fiscal drag from california

Update: The California Budget Surplus ...Read More

Hoover statement from the comment section

Just because he got filthy rich inventing the vacuum cleaner doesn’t mean he knew macro. Yes, they were on the gold standard, but the forces at work took us off it about a year and a half later. Statement by President Herbert Hoover on March 8, 1932. “Nothing is more important than ...Read More

social security solvency

>    >   (email exchange) >    >   Joe wrote: >    >   The argument Stephanie used in the youtube clip is summarized by her here. >    >   Here’s the quote: “Funding Social Security is always and everywhere a political choice. The strongest evidence of this comes directly from the 2009 Annual Report of the Trustees. In that report, ...Read More

Link to Galbraith’s latest- well worth reading!

link: Galbraith’s latest! ...Read More

Roubini again

[Skip to the end] Just in case you thought he knew how the monetary system works. The nonsense about the penalty for deficit spending being anything but possible inflation makes him part of the problem: “There are risks associated with exit strategies from the massive monetary and fiscal easing,” Roubini wrote. “Policy ...Read More

US Consumption and Tax Policy

[Skip to the end] Some interesting bits. Supports my contention that we are seeing real wealth flowing upward and will continue to do so. Note the distribution of consumption, which has been moving north as well. Proposed tax policy won’t change any of this- higher incomes will more than offset increased marginal ...Read More

Debt problem and policy response

[Skip to the end] The ‘problem’ is lack of income to service the debt, not the debt per se. Take a look at the personal income chart, particularly the interest income component. Restoring the ability to pay restores the quality of the debt. With the deficit terrorists in charge it’s going to ...Read More