There are good reasons to assume that Trump’s tax cuts aren’t likely to increase economic growth by all that much. But they are likely to blow up the budget deficit and run into a more active Fed. The combination of loose fiscal policy and tightening monetary policy will lead to higher rates and capital inflows, […]
Entries Tagged as 'Public sector deficits and debts'
March 30th, 2017 · Comments Off on Blowing Up The Deficit
January 26th, 2017 · Comments Off on Who Is Actually Inconsistent About Deficit Spending? Not Paul Krugman
Some argue that Paul Krugman has flip-flopped on deficit spending. Closer inspection reveals that there isn’t much in this, his supposed love for deficit spending has always been conditional on the state of the economy. One could appreciate Krugman’s underlying economic model, as this has been the best in making sense of the post-financial crisis […]
May 31st, 2015 · Comments Off on ‘The U.S. Is Broke’ | Seeking Alpha
From time to time, we hear deeply serious economists expound that the US is broke. Invariably, this involves discounting future entitlement obligations to present day dollars, which usually deliver intimidatingly large sums scaring the uninitiated. The curious thing is, if the US is broke, somebody should tell US bond market investors, as rates should rise […]
April 27th, 2015 · Comments Off on A Tale Of Two Debts: Japan Vs. Greece | Seeking Alpha
In the financial world, often Japan running long-term public deficits is viewed as highly irresponsible while balancing the books is seen as responsible. In reality, this really all depends on the particular circumstances. We compare two extreme cases, Greece and Japan, and show that under certain circumstances, running large deficits is actually less irresponsible as […]
February 7th, 2014 · Comments Off on Is The U.S. Bankrupt?
Despite favorable demographics, a relatively small tax base and a small welfare state compared to other advanced nations, many people are alarmed at the level of public sector deficits and debts. These worries have led to the implementation of considerable spending cuts already, spending cuts, which the IMF! have classified as “excessively rapid and ill-designed.” […]
October 14th, 2013 · Comments Off on Ron Paul Proposed A Fed Masterstroke That Can End The Debt Ceiling Crisis At Once! – Seeking Alpha
While the fight on the debt ceiling continues with the White House unwilling to give in to what they see as extortion which could set a bad precedent for future negotiations and the Republicans unwilling to walk away with this without at least some concessions, is there any way out of this? via Ron Paul […]
April 19th, 2013 · Comments Off on Debunking debts and deficits
the UK debt the rose after the First World War, from 129pc to 158pc by the end of the 1920s, because the government pursued an extreme austerity and deflation strategy to restore Britain to the Gold Standard at pre-war parity. It was self-defeating on its own terms. via Debunking debts and deficits.
April 5th, 2013 · Comments Off on Economics and Politics by Paul Krugman – NYTimes.com
Because US assets are higher-yielding although riskier than US liabilities, we still earn more from our investments than we pay on our liabilities. In the aggregate, America is a bit like a hedge fund that borrows to make risky investments; that’s arguably not a good thing, but it’s not a story of living beyond our […]
April 5th, 2013 · Comments Off on Antonio Fatas and Ilian Mihov on the Global Economy: Gross Mistake
it is not correct to argue that every time we see debt increasing it means that someone is living beyond his or her means. The reason is that we need to consider assets and not just liabilities. This argument becomes even more relevant when you go from an individual to a country as what is […]