The deficit is up 25% over last year. Just reported.
I already knew this and anyone who subscribes to my MMT Trader report knew this because I see the deficit on a daily basis from my analysis of the Daily Treasury Statement.
So, this is no surprise to me. In fact, I have been forecasting this and alerting you, dear readers, about this trend from time to time.
My question, however, is to Mosler and the people who parrot him on the deficit. He (and the others) have been wrong for three years forecasting a recession based on the shrinking deficit whereas I have been consistently and correctly pointing out that it's all about flows.
I follow fiscal flows, each. No one else does that. Flows have been very, very, strong.
So the question is, will Mosler now get bullish? His whole entire premise has evaporated. He's been dead wrong. Will there be any consistency to his view? I doubt it.