If we do not do something about our national finances, then we will reach a point at which the debt ceiling is no longer a matter of congressional action but a matter of what the credit markets are willing to bear.”
Read More“Subsidized credit is the coward’s way of spending money on friends and cronies, because spending-by-lending allows you to list these subsidies as “assets” on your books rather than characterizing them as spending.”
Read MoreWhen the vaccine is implemented and the pandemic is behind us, there will a powerhouse of pent up demand that will propel a booming recovery. Tax revenues will grow accordingly even without a tax rate increase, but there is a downside.
Read MoreIt seems that this can go on indefinitely because we cannot envision the central banks losing control of interest rates, but absence of evidence is not evidence of absence. Believers in Modern Monetary Theory mistake this trend for a true principle. Central banks will remain active in controlling interest rates because the debt is so large that any spike in interest rates would be disastrous. We are stimulating a zombie economy reliant on low interest rates provided by a central government even more dependent on low interest rates.
Read More“The long run budget problem has essentially nothing to do with the Trump tax cut. It has been brewing under Bush, Obama, and Trump. It fundamentally comes from growth in entitlements an order of magnitude larger. “
Read MoreTreasury Secretary Steve Mnuchin has expressed approval for a weaker dollar. Trump is promising higher tariffs. These moves threaten to undo the benefits of his work on tax cuts and regulations.
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