Deficit Spending

Illinois Comptroller: "The State Can No Longer Function"

"The state can no longer function without a responsible and complete budget... We are effectively hemorrhaging money... I have been very vocal regarding these issues and the budgetary impasse since assuming office six months ago; however we are now reaching a new phase of crisis."

The Keynesian Cult Has Failed: "Emergency" Stimulus Is Now Permanent

What do we call a status quo in which "emergency measures" have become permanent props? A failure. The "emergency" responses to the Global Financial Meltdown of 2008-09 are, eight years on, permanent fixtures. Everyone knows what would happen if the deficit spending, money-printing, zero interest rates, shadow banking, asset purchases by central banks and all the rest of the Keynesian Cult's program stopped: the status quo falls apart.

Venezuela: Forty Years Of Economic Decline, Part 1

While Chávez and his successor Nicolás Maduro deserve the brunt of the blame for Venezuela’s current economic calamity, the underlying flaws of Venezuela’s political economy point to much more systemic problems.

Why We Should Be Concerned About Low Oil Prices

Most people assume that oil prices, and for that matter other energy prices, will rise as we reach limits. This isn’t really the way the system works; oil prices can be expected to fall too low, as we reach limits. Thus, we should not be surprised if the OPEC/Russia agreement to limit oil extraction falls apart, and oil prices fall further. This is the way the “end” is reached, not through high prices.

Are Tax Cuts The Economic Growth 'Cure-All'?

"Will 'Trumponomics' change the course of the U.S. economy? I certainly hope so. Unfortunately, there is no evidence that such has ever been the case. As investors, we must understand the difference between a 'narrative-driven' advance and one driven by strengthening fundamentals. The first is short-term and leads to bad outcomes. The other isn’t, and doesn’t."

Trump Abandons Economic Reforms To Embrace War Spending

It is now increasingly clear that the Trump administration is going to be at least four years of endless war, budget-busting spending, massive deficits, and more big government in general. His demonstrated preference is not for addressing the issues that won him the Rust Belt states. He's a war president now, and has better things to do.

Canada Flagged For Recession By BIS

As if Canadians needed more proof that the country’s real estate is in a bubble, and that this misallocation has spread to other sectors of the economy, the BIS latest quarterly report confirms what any critical observer can see: binging on debt is rarely a good idea.

The Questionable State & Abusive Use Of Economics – Part 1

"...the tragedy is that, on the contrary, we are already suffering the long-run consequences of the policies of the remote or recent past. Today is already the tomorrow which the bad economist yesterday urged us to ignore."