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, or weakens the currency, or that higher rates slow the economy and reduce inflation. Additionally, […]

Time to say goodbye? Schauble Calls on Italy to Pursue Structural Reform

Schäuble Calls on Italy to Pursue Structural Reform By Andrea Thomas July 16 (WSJ) — German Finance Minister Wolfgang Schäuble called on Italy to pursue its ambitious structural reform efforts if it wants to boost its economic-growth prospects. “Especially since growth forecasts for Italy have been reduced recently, it’s important to reform and cut the […]

Deficit maths redux- Faulty logic in 2014 GDP forecasts?

Pretty much all forecasters expect improvement in 2014 largely from what they call a reduction in fiscal drag. Their logic goes something like this (with the actual numbers varying a bit with different analysts): Without the deficit reduction in 2013 that subtracted 2% from growth, growth would have been 4%. Therefore, when the fiscal drag […]

Endorsement of Mosler’s 3-point plan

Endorsement of Mosler’s 3-point plan After hearing an explanation of Modern Monetary Theory by Warren Mosler, Occupy Dallas endorses his remedy for our nation’s current economic condition: 1-cut FICA taxes to end this regressive policy and allow greater spending. 2-disbursement of federal funds to states on per-capita basis 3-guaranteed “transitional” employment for anyone seeking a […]

How to fix the euro banking system

The banks need, and I propose, ECB deposit insurance for all euro zone banks. Currently the member governments insure their own member bank deposits and do the regulation and supervision. So to get from here to there politically they need to turn over banking supervision to the ECB. Let me suggest that’s a change pretty […]

Video from Venice presentation

Venice video link here. Also, Trichet Friday, the German elections, and G8 reports seem to be setting the tone for the euro zone to do something about the solvency issue. This is very good for equities and the rest of the credit stack. At the same time it does not seem likely that any growth […]


Comes back to the idea that resolving solvency issues in the euro zone doesn’t fix the economy. And with negative growth the solvency math doesn’t work for any of the euro members. And what’s with the ECB threatening to back away on liquidity support for the banking system? So looks to me like the Greek […]

Proposal update, including the JG

My proposals remain: 1. A full FICA suspension: The suspension of FICA paid by employees restores spending which supports output and employment. The suspension of FICA paid by business helps keep costs down which in a competitive environment lowers prices for consumers. 2. $150 billion one time distribution by the federal govt to the states […]

MMT proposals for the 99%

1. A full FICA suspension to end that highly regressive, punishing tax and restore sales, output, and jobs. 2. $150 billion in federal revenue sharing for the state goverments on a per capita basis to sustain essential services. 3. An $8/hr federally funded transition job for anyone willing and able to work to facilitate the […]