Deficit Archive

Dallas speech

I guess he thinks the coming fiscal spending will close the output gap… Cash Crunch Will Force Governments to Do Less By Gerald F. Seib April 9 (WSJ) In a speech in Dallas, Mr. Bernanke bluntly noted that two giant fiscal waves were headed for the federal government, one atop the other. ...Read More

Greek Banks Plead for More Aid in Debt Crisis

It’s all falling into place with the austerity measures taking their toll on the financial equity that supports the credit structure in a euro wide banking system that does not have credible deposit insurance. Greek banks plead for more aid in debt crisis By George Georgiopoulos and Harry Papachristou Apr. 7 (Reuters) ...Read More

Tom Hickey on MMT

Tom Hickey Reply: April 3rd, 2010 at 12:38 am MDM, the key here is the MMT concept of vertical and horizontal in relation to money creation. This is sometimes called exogenous (outside) and endogenous (inside). When the government “spends,” the Treasury disburses the funds by crediting bank accounts. Settlement involves transferring reserves ...Read More

EU Daily

The institutional structure puts the Eurozone in a very awkward position. The higher deficits desired by the economy to restore non govt net financial assets at the same cause a deterioration in the credit worthiness of the member nations running the deficits, which seems to limit the process as these to two ...Read More

Rasmussen polls

65% Now Hold Populist, or Mainstream, Views 55% Favor Repeal of Health Care Bill I find his polls as good as any. He shows 54% favor repeal of the new health care law, with 70% of seniors against the Medicare cuts. The lack of understanding of the monetary system is taking an ...Read More

Text of Greek Deal

As before, this is in fact another statement that indicates no checks are to be written. The purpose is probably the hope that it be read as a statement of support which will facilitate continued funding of Greek debt. It is a clear statement that no funding is available until Greece fails ...Read More

In paradigm Health Care criticism from the left

This Is Not The Way To Do Healthcare Reform: Democrats Propose Windfall For Insurance Industry By L. Randall Wray It is beginning to look like Congress is going to vote to pass health care legislation on Sunday. According to the NYTimes, Democrats are practically celebrating already. here It is interesting, however, that ...Read More

Health care

Looks like bad macro- various taxes kick in right away while increased expenses start a few years later. It’s completely backwards for this point in the business cycle. Health-Care Bill Would Increase Taxes On Wages, Investments March 19 (Bloomberg) — High-income families would be hit with a tax increase on wages and ...Read More

Deficits vs Unemployment

[Skip to the end] With proactive deficit spending as in 2003 unemployment peaks before the deficit peaks. [top] ...Read More

Deficit large enough to turn the economy?

[Skip to the end] Given our counter cyclical tax structure, a weak economy causes the deficit to rise until it adds sufficient income and net financial assets to turn things around. It then goes the other way, with the strong economy driving up revenues faster than even the government can spend, until ...Read More