Category Archives: Government Spending

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

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 |

Macro update

First this, supporting what I’ve been writing about all along: Here’s Proof That Congress Has Been Dragging Down The Economy For Years By Shane Ferro Oct 8 (Business Insider) — In honor of the new fiscal year, the Brookings Institution … Continue reading

Posted in Fed, Germany, Government Spending, UK, USA |

The 10th Plague

Several years ago I began using the analogy of the 10th plague of the Old Testament, the idea being that the EU wouldn’t move away from austerity until it brought down Germany itself. It’s looking like that day is getting … Continue reading

Posted in Germany, Government Spending |

Who’s ‘we’?

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

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’

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 |

Construction, gasoline prices, manufacturing, state and local contribution to gdp, restaurant performance index, saudi output, sun spots

Headlines sound a lot better than the charts look. Absolute levels and growth rates continue to fall short of prior cycles: Construction Spending Highlights Construction outlays saw a broad-based gain in July. Construction spending rebounded 1.8 percent after a 0.9 … Continue reading

Posted in Deficit, GDP, Government Spending, Housing |

Charts and data from the last few days

Down for the cold winter then back up some, and a very weak first half of the year, and Q3 fading from Q2: GDP Highlights The second estimate for second quarter GDP growth came in a little stronger than expected, … Continue reading

Posted in GDP, Government Spending, Housing |

Real Fiscal Responsibility Today Radio and TV Show pilots

The Real Fiscal Responsibility Talk Show Pilot Project This project is for everyone tired of hearing economic commentary from those who got everything wrong. For decades the the doctrine of “Fiscal Responsibility” interpreted as long-term deficit reduction and Government austerity … Continue reading

Posted in Deficit, GDP, Government Spending | Tagged |

taking away the punch bowl

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Posted in Deficit, Government Spending |