Does anybody understand debt? Some - but not many. Today's post is less of my normal extended prose and more of an outline. I've been invited to speak at some writing classes here at the college and this is intended to serve as my speaking notes. Background: What have you heard? Krugman in New York … Continue reading Does Anybody Understand Debt?
Just a quickie to bring your attention to this, yesterday's close on the U.S. Government bond market as reported by Google Finance. Note the 10 year bond - less than 2%. Bond Maturity Yield (effective interest rate) change in points(percent) 3 Month 0.01% 0.00 (0.00%) 6 Month 0.04% +0.01 (33.33%) 2 Year 0.19% +0.01 (5.56%) … Continue reading US Government Bond Market & Interest Rate Watch – No Signs of Worry Over Deficits, Inflation, or Default
Rebecca Wilder at AngryBearBlog.com explains why the current deficit hysteria that has gripped Washington is misplaced (and offers some great graphs of historical spending patterns). A little terminology for some readers. "cyclically endogenous" means the cause of the spending/revenue is not from some budget decision of this year's Congress or President, but rather that the … Continue reading A Look at Government Spending Trends. Not What the Deficit-Fearers Claim. It’s Really A Jobs Deficit.
Earlier this week the absurd and totally unnecessary debate in Washington over raising the national debt-ceiling came to an agreement, both houses of Congress passed it, and the President signed it. Earlier this week I gave this metaphor for the deal, wondering why we need enemies with "friends" like our representatives in Washington. Now that … Continue reading We Have A Debt-Ceiling Deal. The Economy Loses.
Tuesday evening the House of Representatives voted on whether to raise the so-called "debt ceiling". It was pure charade. No, it's worse. It's kabuki theater of the absurd. First off, the House Republican leadership knows it's only for show. The reality is that Congress will vote to raise the limit later this summer. They have … Continue reading Debt Ceiling: Kabuki Theater of the Absurd
From Ezra Klein via Mark Thoma of Economists View: Ezra Klein on Social Security: 1) Over the next 75 years, Social Security’s shortfall is equal to about 0.7 percent of GDP. Source (PDF). 2) For the average 65-year-old retiring in 2010, Social Security replaced about 40 percent of working-age earnings. That “replacement rate” is scheduled … Continue reading Social Security Facts
My Mother was a big advocate of patience. She was the anti-crisis. In response to any panicked concerns I had about the some "crisis" that was coming, we always counseled "we'll cross that bridge when we get to it". And sure enough, there was usually either no problem eventuallly crossing the bridge or there was … Continue reading What Budget Crisis? Let’s Do Nothing Now
Yesterday I made a post about how federal tax revenues have not increased as a result of the Bush tax cuts from 2001. Actually much of the post is based upon an analysis of official data that David Cay Johnston did. In the comments though, William Sullivan asks: I realize that economic growth, as measured … Continue reading Tax Cuts, Tax Revenues, and Growth: Reconciling Theory with Evidence
David Cay Johnston reported this a few weeks ago and I almost missed it. It's particularly relevant, though, what with official Washington talking about how to cut spending, restrain the deficit, etc. (at least attacking the English language with euphemisms about war in Libya). Let's recap what Washington, especially Republicans, have been saying (from Johnston's … Continue reading News Flash: Federal Taxes Have Plummeted
On Friday Paul Krugman posted the first of what has become 2-3 posts on his blog wherein he claims that MMT is "just wrong". As I noted Friday here, I commented on his blog to point out how his post was deceptive and misrepresented MMT. I was not alone. Well over 100 people have taken … Continue reading Krugman Is Still Wrong About MMT – and with it still wrong on deficit