The Federal deficit is running at the highest level since Feb 29, indicating that Apr-May tax receipts are now being recycled back into the economy in the form of higher spending.
With austerity off the table in Europe, talk of "fiscal consolidation" on the rise and deficit spending ramping up in the U.S. once again, the market selloff is likely over for now.
4 comments:
interesting Mike.
Do they breakout what the spending is on by chance? That would be interesting to note I'd think.
Interest paid on Treasury securities jumped up, Social Security payments, lower tax receipts, etc.
“With austerity off the table in Europe…”. That’s just talk. It’s recently become fashionable to talk about growth, and not mention austerity in Europe. But the $64k question is this. When there are disparities in competitiveness in a currency union, and the most competitive country (Germany) won’t countenance significantly higher inflation, that condemns the rest to deflation.
There’ll be trouble in Europe for some time yet.
Mike,
isn't "fiscal consolidation" just a euphemism for the same old thing: putting the squeeze on workers and small business while extending protection to the large and politically connected firms?
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