This is an entry from DelanceyPlace.com, a literary blog that excerpts interesting books, quite often on economics and economic history. This comes from the book, America’s First Great Depression: Economic Crisis and Political Disorder after the Panic of 1837, by Alasdair Roberts by Cornell University Press. This is a bit of [...]
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Here is data from the Mercatus Center’s Veronique de Rugy on U.S. public debt. Not an encouraging scenario. Drawing on data from the Congressional Budget Office’s long-term alternative budget scenario and historical estimates, [Veronique de Rugy] calculates fifty years of changes in debt held by the public and economic growth. Each bar in the chart represents the rate of [...] This just in from Standard & Poor’s: LONDON Feb. 27, 2012–Standard & Poor’s Ratings Services said today that it has lowered its ‘CC’ long-term and ‘C’ short-term sovereign credit ratings on the Hellenic Republic (Greece) to ‘SD’ (selective default). Our recovery rating of ’4′ on Greece’s foreign-currency issue ratings is unchanged. Our country transfer and [...] No government has ever commanded the resources at the disposal of our ungodly Leviathan, which consumes about 25% of the product of the world’s richest country. It is driven by a voracious alliance of government’s own employees, and those who receive benefits from the state. At least 90 million Americans either [...] Even Japan? Japanese government-bond prices tumbled, as foreign banks reduced assets across the board, leaving fewer buyers of Japanese debt in the market. “What has happened is that foreign banks, aggressive buyers of JGBs, are under pressure to reduce their assets. That has put more pressure on domestic banks to bid for JGBs,” said Christian [...] By now everyone knows that S&P downgraded the debt of the USA from their top rating, AAA, to their second-highest grade, AA+. Most of the commentary has been of the pin-the-blame-on-the-donkey variety. For all most people know, this is the collapse of the currency and the financial system and their biggest concern is that Obama [...] The European Central Bank is taking emergency steps to prop up eurozone banks by opening the money machine to member banks and by resuming the monetization of sovereign debt of weak economies. Bond vigilantes are targeting Spain and Italy, rightly so, as the condition of their banks and sovereign fiscal problems are dragging down their [...] This is the 2011 Henry Hazlitt Memorial Lecture, given by David Stockman on March 12 at the Mises Institute’s Austrian Scholar’s Conference. It is an important white paper dealing with the myth of the bailouts and the policies that have led to the monetary and fiscal frankenstein we have today. Stockman recounts the [...] The TIC (Treasury International Capital) transaction report came out today. It is something I follow mildly, because I don’t think holders of U.S. dollars have much of a choice other than to buy U.S. debt or U.S. goods with their dollars. But here is the report: Net buying of long-term equities, notes and bonds totaled [...] You shouldn’t be surprised by S&P’s negative rating of US sovereign debt. It is the inevitable result of years of bad fiscal policy on behalf of our government. If this doesn’t kick your alarm bells into “on”, I don’t know what else will. We have been commenting for years on the government’s fiscal profligacy and [...] |
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