Category Archives: Deficit

my comments on comments on the CBO report

Posted on January 30, 2015 @ 1:24 pm (Friday) by WARREN MOSLER

STAFF ANALYSIS OF THE CONGRESSIONAL BUDGET OFFICE’S BUDGET AND ECONOMIC OUTLOOK, 2015–2025 “Political differences shouldn’t prevent us from taking bold, decisive action to address America’s dire financial outlook. Yes, there is an acute shortage of available desired savings as indicated … Continue reading →

Posted in Deficit, GDP, Government Spending |

macro update

Posted on December 17, 2014 @ 9:50 am (Wednesday) by WARREN MOSLER

Let’s look at the Saudi price cuts in the context of the accounting identity that states that for everyone who spent less than his income, another must must have spent more than her income or that much output would not … Continue reading →

Posted in Comodities, Deficit, GDP |

Housing starts, Japan discussion, China, US pmi, store sales

Posted on December 17, 2014 @ 9:24 am (Wednesday) by WARREN MOSLER

Looks bad to me. Remember, for GDP to grow at last year’s rate, all the pieces on average have to contribute that much. And, as previously discussed, hard to see how starts and sales can grow with cash buyers and … Continue reading →

Posted in Bonds, CBs, China, Deficit, GDP, Housing, Japan, Trade |

Article on tax receipts, labor markets

Posted on December 9, 2014 @ 10:52 am (Tuesday) by WARREN MOSLER

Good quick read and charts on tax receipts, ‘labor markets’ etc. A Matter, It Seems, Of Faith By Jeffrey P. Snider

Posted in Deficit, Employment |

personal income and consumption charts and comments, and a word on oil

Posted on November 28, 2014 @ 8:17 pm (Friday) by WARREN MOSLER

This is after tax personal income not adjusted for inflation. Note that there was anticipation of an acceleration from the first quarter, but now it looks like the growth has slowed and rolled over: Here you can see how it … Continue reading →

Posted in Comodities, Deficit, Oil |

State and local govt charts

Posted on November 12, 2014 @ 8:42 am (Wednesday) by WARREN MOSLER

The bulk of the boost is coming from state and municipal governments. After tightening their budgets for three years following the end of the recession, they began stepping up spending in 2013 and continued to do so this year Except … Continue reading →

Posted in Deficit, Government Spending |

There is no right time for the Fed to raise rates!

Posted on October 13, 2014 @ 10:09 am (Monday) by WARREN MOSLER

There is no right time for the Fed to raise rates! Introduction I reject the belief that economy is strong and operating anywhere near full employment. I also reject the belief that a zero-rate policy is inflationary, supports aggregate demand, … Continue reading →

Posted in Deficit, Fed, Government Spending, Interest Rates, Proposal |

Who’s ‘we’?

Posted on September 30, 2014 @ 12:57 pm (Tuesday) by WARREN MOSLER

And they still are? The idea that the deficit is too small remains a non starter for the mainstream. In the face of all evidence to the contrary, including over 2 decades of it in Japan, they continue to believe … Continue reading →

Posted in Banking, Deficit, Government Spending |

Case-Shiller housing price index

Posted on September 30, 2014 @ 12:54 pm (Tuesday) by WARREN MOSLER

Looks to me like this business cycle is over? This is a lack of demand story. The FICA hike in Jan 2013, followed by the sequesters in April, and the aggressive automatic fiscal stabilizers doing their thing to reduce govt … Continue reading →

Posted in Deficit, Government Spending, Housing |

The first L shaped US ‘recovery’

Posted on September 22, 2014 @ 9:48 pm (Monday) by WARREN MOSLER

Some 5 years ago when the talk was about whether the US recovery was going to be V shaped or U shaped, I suggested that it would be more L shaped, as a 0 rate policy requires a larger deficit, … Continue reading →

Posted in Banking, Deficit, Government Spending, Housing |