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This is from the Mercatus Center, adapted from an article by Charles Blahous in his e21 piece “How Did Federal Surpluses Become Huge Deficits?. According to Virginia de Rugy of Mercatus: According to the CBO, three areas have influenced the swing from projected surpluses to actual deficits over the 2002–2011 period: (1) increased [...] The IMF cut its forecast for EU area economic growth for 2012 saying that their collective economies will decline by 0.5%. The IMF said the most immediate policy challenge is to restore confidence and put an end to the crisis in the euro area by supporting growth, while sustaining fiscal adjustment, containing deleveraging, and providing [...] COMMENTARY Now that the supercommittee has failed to reach a budget compromise we hear about how things don’t work in D.C. any more. There is a nostalgic longing for the good old days when collegial legislators could get together and act for the benefit of the nation. What a crock. Another way to look at [...] EMU heading for recession EMU GDP expanded by 0.2% (1.4% YoY) in Q3. Germany (0.5%) and France (0.4%) showed decent growth, while Spain stagnated and the Netherlands (-0.3%) and Portugal (-0.4%) contracted. Not only sentiment indicators but indicators such as the PMI and industrial and consumer confidence are falling rapidly. The same holds true for [...] Warren Buffet said yesterday he and his fellow millionaires and billionaires should be taxed more: Mr Buffett, who often gives Mr Obama advice, on Monday said the mega-rich had been “coddled long enough by a billionaire-friendly Congress”. He urged the committee to raise tax rates for American households earning more than $1m a year and to immediately [...] While politician are congratulating themselves today (Senate Majority Leader Harry Reid: ”Our country was literally on the brink of disaster.”), the markets weren’t fooled by their hyperbole and the Dow declined 2.19% (265 points) and the S&P dropped 2.56%. Republicans are celebrating that “business has changed in Washington” because of their efforts. The Tea Party Caucus was divided [...] Sunday night a compromise was reached on the budget which will extend and pretend until 2013. There are cuts here, but they aren’t real. At least that what Ron Paul says tonight: In spite of the rhetoric being thrown around, the real debate is over how much government spending will increase. No plan under serious [...] |
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