Share
The following is a post by Marshall Auerback, who also writes at New Deal 2.0.
We’ve persistently taken the view that there is no economic doctrine, no magic number, which would imply a firm external constraint as far as public spending goes, when dealing with a sovereign government issuing debt in its own floating rate, non-convertible [...]

If you enjoy our post, feel free to subscribes to our rss feeds

Share
Edward wrote a piece about Japan’s government net asset value falling below zero. He thought it would make sense if I gave you an alternative view using Richard Koo’s latest thinking about the Japanese experience, especially given the parallels to the U.S. regarding balance sheet recessions.
Before I get to Koo, I should add that, for [...]

If you enjoy our post, feel free to subscribes to our rss feeds

Share
Marshall Auerback here with a post which I originally co-wrote at New Deal 2.0 with Randall Wray.
In recent weeks, there has been much discussion about what to do about Greece. These questions become all the more relevant as the country attempts to float a multibillion-euro bond issue later this week. The Financial Times has called [...]

If you enjoy our post, feel free to subscribes to our rss feeds

Share
Marshall Auerback here with a post which I originally published at New Deal 2.0.
What is a fiscal crisis? When does deficit spending become “unsustainable”? Today, we can see net public spending rising (sharply as a percentage of GDP in some cases) as private spending has plummeted. Still, unemployment has skyrocketed. So whatever government spending has [...]

If you enjoy our post, feel free to subscribes to our rss feeds

Share
Marshall Auerback warns that unchecked speculation and fraud are threatening the European Monetary Union.
Marshall Auerback here with a post which I originally published at New Deal 2.0
Surprise, surprise: Wall Street tactics akin to the ones that fostered subprime mortgages in America have worsened the financial crisis shaking Greece, Spain, Portugal, and undermined the euro by [...]

If you enjoy our post, feel free to subscribes to our rss feeds

Share
Marshall Auerback here with a post which I originally published at New Deal 2.0.
Last Friday, Mr. Obama and the GOP staged the equivalent of a British Parliamentary Question Period in front of the TV cameras. It showed the quick-thinking, articulate President at his best. Unfortunately, the subsequent Saturday morning national radio address showed him at [...]

If you enjoy our post, feel free to subscribes to our rss feeds

Share
Marshall Auerback here with a post which I originally published at New Deal 2.0.
Every instinct the President has honed, every voice he hears in Washington, every inclination of our political culture urges incrementalism, urges deliberation, and an abundance of caution, particularly in regard to our “unsustainable government spending.” And for all of his apparent [...]

If you enjoy our post, feel free to subscribes to our rss feeds

Share
I think Bernanke probably will still get through. Congress need sixty votes to remove a filibuster hold. Thereafter, they only need fifty votes to get Bernanke through. I suspect Obama will go to senators like Barbara Boxer and say:
Look, vote to remove the hold. Then you can vote against Bernanke for your constituents because [...]

If you enjoy our post, feel free to subscribes to our rss feeds

Share
I picked up this Robert Reich quote from Politico’s Open Mic section, which echoes the sentiments expressed by a Massachusetts voter in my recent post “President Obama, are you listening?”:
A third political party is emerging in America. Call it the I’m-Mad-As-Hell party.
It’s a mistake to see the Mad-As-Hell party as just a right-wing phenomenon [...]

If you enjoy our post, feel free to subscribes to our rss feeds

Share
Earlier in the week, I wrote a post-mortem on the Massachusetts Senate race won by Scott Brown. I saw the results as a signal that Americans are worn out by fraud and corruption. I found one comment from a registered Democrat particularly instructive regarding the mood of the electorate and am publishing the heart of [...]

If you enjoy our post, feel free to subscribes to our rss feeds