Deficit Archive

Crude Oil Update

Still seems to me that the idea that WTI appreciates to Brent as the Strategic Petroleum Reserve release winds down over the next few weeks is playing out as previously discussed. The WTI discount depends on a serious glut condition persisting, and the wind down of the approx 3.8 million barrels a ...Read More

MERKEL: ECB INVOLVEMENT IN EFSF LEVERAGE RULED OUT

Looks like Merkel is speaking purely for political effect, which may be all she’s capable of, unfortunately. Fact is, from the beginning, without the ECB ultimately writing the check, it’s all been in ponzi. And like all ponzi’s, it seems to work on the way up, and disintegrates on the way down. ...Read More

WSJ- Boehner pulls out of debt talks….

As previously discussed, the President is no longer involved, and if Congress does get a bill to his desk he’ll sign it. Grand Bargain Talks Collapse By Carol E Lee and Janet Hook July 22 (WSJ) — A high-stakes effort by President Barack Obama and House Speaker John Boehner to hatch a ...Read More

Bernanke: No Plans to Add New Stimulus Measures Now

More evidence of the suspected understanding with China- they resumed buying US Tsy secs in return for no more QE: The U.S. economy “has been doing worse than expected” and Beijing needs to “seriously assess” possible risks to its vast holdings of American debt, said Yu Bin, an economist in the Cabinet’s ...Read More

CBO Congressional Report- U.S. Could Face European-Style Debt Crisis

How about the accounts sticking to accounting. Just in case you thought there was any hope: But most ominously, the CBO report warns of a “sudden fiscal crisis” in which investors would lose faith in the U.S. government’s ability to manage its fiscal affairs. In such a fiscal panic, investors might abandon ...Read More

response to deficit dove letter

The right level of deficit spending, long term or otherwise, is the one that coincides with full employment. Any nation with a non convertible currency and floating exchange rate policy is necessarily not in any case operationally revenue constrained. A statement from Professors Paul Davidson, James Galbraith and Lord Skidelsky. We three ...Read More

Claims/DGO

Still feels like modest GDP growth, positive but not enough to make much of a dent in unemployment, until the ‘hand off’ to growth from credit expansion from some other sector, which could be a while. Risks remain external. China has been a strong first half weak second half story for a ...Read More

Fox News Business

Warren will be on Fox Business tomorrow morning at 9:30. Video to follow. ...Read More

NYFed

Good find! I recommended this years ago when Karim first introduced me to his Treasury contacts. It moved forward and was passed around for discussion, but the dealers quashed it. An unlimited lending program could replace much of the generic libor swap market. Wish they would revisit it. Why Is the U.S. ...Read More

Professor Bill Mitchell on inflation

Zimbabwe for hyperventilators 101 A very good read. Today’s hyper inflation fears due to ‘money printing’ are pure fear mongering. My comment to Bill in support of his article: Russia in 1998 is an example of how much the flat earth economists are wrong in what determines the value of a currency ...Read More