Guest post by Lee Presser.
America’s fiscal year is October 1 to September 30. With two month left in FY16, the U.S. Treasury has already paid creditors $380,925,428,211.67 in interest costs. (That’s $381 Billion) https://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
The average interest rate was just over 2%. https://www.treasurydirect.gov/govt/rates/pd/avg/2016/2016_07.htm
It is expected that the last two month’s of this fiscal year, interest costs will increase another $45 to $66 Billion. The total FY16 interest cost may be between $426 and $447 Billion.
Read more →I was up early this morning sifting through the market stories.
* Asia: crash * Middle East: crash * Europe: crash * USA: set to open There’s good news in all this loss. First, stocks were overpriced. At some point, they will bottom out and it will be time to start buying. Second, the Golden Age of the Central Banker seems to be over. And that is very good news.
Read more →Eurozone’s economy is basically in recession.
Walmart lowered expectations. Again.
The world is teetering on the edge of World War.
The US is launching Iraq War 3.0: Mission Accomplished Accomplished.
Germany’s economy is flat, and Italy and France are getting worse.
Risk is high.
Corporate debt is staggering.
The Fed’s balance sheet is a sea of monetized debt.
The central banks have nothing left to fix another crash.
And the stock markets are rocketing to record highs because of all this news.
Read more →Are they going to peg all the banks? Why, they could buy ground and build a new Mississippi cheaper. They are pegging Bulletin Tow-head now. It won’t do any good. If the river has got a mortgage on that island, it will foreclose, sure, pegs or no pegs. – Mark Twain quoting Uncle Mumford,Life on the Mississippi
When I last checked the Internets last night, markets were booming in Asia, and US futures were soaring.
Read more →In a column intended to attract readers, not to promote hard economics, Rotman University economist Richard Florida declares that home ownership is terrible for the US Economy.
The problem is, like many economists,** Florida’s understanding of home ownership is 180 degrees ass-backwards**. Florida thinks that home ownership is supposed to cause economic growth.
Instead of leading to economic development, higher rates of homeownership today are associated with lower levels of it.
Read more →The world’s economy–including BRICs–is collapsing. The problem is debt, and the youth will set us free. Even if that’s a very painful liberation.
Read more →What the hell’s going on at NYT? First, they do a piece on Andrew Breitbart. Then they warn the world that Taxmageddon will crush the world in 2013, beginning with the USA.
Here’s how Business Insider summarized the David Leohardt article:
Basically, with no changes to current law, taxes will rise for everyone, and after tax, inflation-adjusted income for the average American will drop to 1998 levels.
Read more: https://www.
Read more →Maureen Dowd’s having trouble slathering make-up on her favorite pigs these days. Her President—the man for whom she surrendered all pretense of intelligence, wisdom, and self-control—is flailing.
And Maureen Dowd is going all wobbly. Wobbly on Obama. Wobbly on America. Wobbly on life. Here’s an exceprt:
On the razor’s edge of another recession; blocked at every turn by Republicans determined to slice him up at any cost; starting an unexpectedly daunting re-election bid; and puzzling over how to make a prime-time speech about infrastructure and payroll taxes soar, maybe President Obama is wishing that he had thrown the game.
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