Summary
Republican president and Republican Congress. Bring on the stimulus (denied Obama)! "Reagan proved that deficits don't matter.…" — Dick Cheney (2004)
- The US budget deficit is $100 billion in October 2018; this is a net expansion of income and savings in the private sector and explains the rebound in markets.
- The good news is that dollars are being added to the economy by the Federal government, allowing the private sector to post a $100 billion surplus.
- Private credit growth has rebounded this month and made a $17B contribution to aggregate demand and fiscal flows.
Fed reaction response: Raise interest rates (without realizing that the addded interest payments are also stimulative and higher interest is a price rise).
3 comments:
The Longbon fake news
Comment on Alan Longbon on ‘Good News: The U.S. Government Runs A $100B Deficit In October 2018, The Private Sector Runs A $100B Surplus’
Alan Longbon jubilates: “The US budget deficit is $100 billion in October 2018; this is a net expansion of income and savings in the private sector and explains the rebound in markets. The good news is that dollars are being added to the economy by the Federal government, allowing the private sector to post a $100 billion surplus. Private credit growth has rebounded this month and made a $17B contribution to aggregate demand and fiscal flows.”
There is the household-, business-, government- and foreign trade-sector. The “private sector” is a MMT swindle.#1, #2, #3, #4
The general macroeconomic Profit Law reads Qm=Yd+(I−S)+(G−T)+(X−M). Let’s simplify to Qm=−S+(G−T). Then Alan Longbon’s message reads correctly: The US budget deficit, i.e. G−T, is $100 billion in October 2018. Private credit growth has rebounded this month and made a $17B, i.e. dissaving −S=$17B.#5
Ergo, monetary profit Qm increased by 117B. Much to celebrate for the Oligarchy. Special thanks to Mr. Trump for the exploding budget deficit.#6
Good news for WeTheOligarchy is bad new for the WeThePeople.
Egmont Kakarot-Handtke
#1 MMT: Money-making for the one-percenters
https://axecorg.blogspot.com/2017/09/mmt-money-making-for-one-percenters.html
#2 Down with idiocy!
https://axecorg.blogspot.com/2017/12/down-with-idiocy.html
#3 The Kelton-Fraud
https://axecorg.blogspot.com/2018/07/the-kelton-fraud.html
#4 How MMT makes everybody happy
https://axecorg.blogspot.com/2018/11/how-mmt-makes-everybody-happy.html
#5 Secret Champagne for the MMT gods
https://axecorg.blogspot.com/2018/08/secret-champagne-for-mmt-gods.html
#6 Keynes, Lerner, MMT, Trump and exploding profit
https://axecorg.blogspot.com/2017/12/keynes-lerner-mmt-trump-and-exploding.html
Egmont is almost as amusing as Franko, who a while back claimed that the deficit would go down. Franko posts twits, Egmont posts his own site.
If you're going to read either one of these clowns you might just as well listen to Larry Kudrow and Jim Kramer.
"Good news for WeTheOligarchy is bad new for the WeThePeople."
Who the hell is "WeThePeople'?
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