Tag Archives

Archive of posts published in the tag: Debt

An Addiction to Low Interest Rates

It 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.

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The Longest Bull

The tariffs and the growing debt are threats, but bull markets do not require perfection. They just require sound fundamentals and a dearth of alternative investments.  

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Stifling Inflation and Productivity

From The Reasons Behind the Obama Non-Recovery by Robert Barro in The Wall Street Journal The main U.S. policy used to counter the Great Recession was increased government transfer payments. Federal social benefits to persons as a ratio to GDP…

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Future Consumption Denied

From John Mauldin in his blog, Mauldin Economics, Where is the Growth? Yes, shrinking workforces, private-sector debt overhangs, and technological innovation are making it difficult to achieve “financially stable growth with full employment” (quoting Summers); but governments and central banks are…

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Killing the Wealth Machine

Fareed Zakaria’s first idea towards  “Defusing the Debt Crisis”  in the March 8 Newsweek was to institute a value added tax.  While I supported his other two ideas (see previous two posts), I am at best uncertain on a value…

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End the Market Distorting Subsidies

In the March 8th Newsweek columnist Fareed Zakaria proposes three solutions to the debt crisis in “Defusing the Debt Bomb.” His second proposal was to “end the massive , distorting subsidies for homeownership, healthcare, and agriculture.”  I agree with him.…

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