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Here are my most recent posts

Full text: Moody’s downgrades Spain’s government bond ratings to A1, negative outlook

Full text: Moody’s downgrades Spain’s government bond ratings to A1, negative outlook

Spain continues to be vulnerable to market stress and event risk. The already moderate growth prospects for Spain have been scaled back further. Lower economic growth in turn will make the achievement of the ambitious fiscal targets even more challenging for Spain.

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Paul Davidson: The State of Economics (wonkish)

Paul Davidson: The State of Economics (wonkish)

Paul Davidson argues that a theory is the way humans describe real world observations on the basis of a model that starts with a few axioms. An axiom is an assumption accepted as a universal truth that does not need to be proved. From this axiomatic foundation, the theorist uses the laws of logic to deduce conclusions that explains what we observe in the world of experience. All theories are generally accepted in some tentative fashion. Theories are not ever conclusively established and can be replaced when events are observed that are deviations from the current existing theory. Thus, the financial crisis of 2007-2009 should have been sufficient empirical evidence to indicate that the axiomatic basis of the mainstream theory needs to be replaced.

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Full text: Moody’s downgrades Italy’s government bond ratings to A2 with a negative outlook

Full text: Moody’s downgrades Italy’s government bond ratings to A2 with a negative outlook

Moody’s Investors Service has today downgraded Italy’s government bond ratings to A2 with a negative outlook from Aa2, while affirming its short-term ratings at Prime-1. The rating action concludes the review for downgrade initiated by Moody’s on 17 June, 2011.

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BEA Adjusts Second Quarter GDP Growth Rate Upward

BEA Adjusts Second Quarter GDP Growth Rate Upward

The public has been seeing their (per-capita) “slice of the pie” contract now for six months, and no amount of well spun “sluggish growth” can alter their view of a shrinking reality.

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Mosler: Why Greece should not be allowed to default

Mosler: Why Greece should not be allowed to default

Warren Mosler argues that it is the realization that the ECB is the issuer of the currency, and is therefore not revenue constrained, that leads to the conclusion that not allowing Greece to default best serves public purpose.

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Why is the Fed lending dollars unsecured to the ECB… again

Why is the Fed lending dollars unsecured to the ECB… again

It remains my position that Congress should not allow the Fed to lend unsecured to foreign central banks without specific Congressional approval. But the Fed does currently have that authority and they are again using it to keep $ LIBOR from rising. And that lending must be in unlimited quantities to insure $ LIBOR is capped at the Fed’s target rate.

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Additional US dollar liquidity-providing operations over year-end

Additional US dollar liquidity-providing operations over year-end

A statement by the Bank of England on market liquidity to be provided in co-ordination with other major international central banks.

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The damaged ECB legitimacy

The damaged ECB legitimacy

The European Central Bank was once known for its focus on price stability. Since the global economic crisis, however, its role has extended to saving banks and sovereign countries. This column argues that such a move has badly harmed the institution’s legitimacy – something that will damage both its policy effectiveness and confidence in the governing bodies of the EU as a whole.

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Mosler: The Speech that President Obama Should Make

Mosler: The Speech that President Obama Should Make

Warren Mosler has three proposals specifically designed to get sales up to make sure business has a good paying job for anyone willing and able to work. He arguess that’s good for businesses and all the people who work for them and says these proposals are bipartisan. His view is that they are supported by Americans ranging from Tea Party supporters to the Progressive left, and everyone in between

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UBS: Euro break-up – the consequences

UBS: Euro break-up – the consequences

The following is excerpted from today’s UBS research note by Stephane Deo, Paul Donovan and Larry Hatheway on the consequences of a euro break-up. The full note is embedded below.

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Bernanke: The Near- and Longer-Term Prospects for the U.S. Economy

Bernanke: The Near- and Longer-Term Prospects for the U.S. Economy

Ben Bernanke’s Speech to the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming

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Manufacturing data suggest contraction

Manufacturing data suggest contraction

The Richmond Fed manufacturing index fell to -10 in August from -1 in July, joining other manufacturing index sugessting contraction in the sector.

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