Monday, May 7, 2012

Marshall Auerback — An OPEC ‘Tax Cut’ on the way?


High petro prices act like a tax in withdrawing spending power from the global economy. Marshal speculates on an impending fall in price due to excessive speculation and supply overhang.

Read it at MacroBits
An OPEC ‘Tax Cut’ on the way?
by Marshall Auerback
(h/t Kevin Fathi via email)

3 comments:

GLH said...

Tom Hickey:
I read the article and left a comment. My problem is that Mr. Auerback seems to be fairly constructive on the economy wereas other MMTers don't seem to be. I would like to know what you think about the seeming difference in opinion. Can you reconcile this for me?
By the way, I suspect that Mr. Auerback is correct in his assement of the oil situation. What do you think?

Tom Hickey said...

I think that Marshall is right about oil. Huge speculative supply.

Warren thinks that barring a shock or shift in fiscal, the US economy continues to muddle along. I agree, but I am a bit less sanguine.

For example, I think that there is still a lot of drag left in housing, for example, and the political situation is very uncertain, with the public failing to understand the import of the deficit and debt. You can get an idea from the posts I put up where I think trends are heading.

Randy has been writing that the conditions are being set up for another crisis, which will be much worse than this one.

GLH said...

Tom Hickey:
Thanks. I tend to agree with you.