Monday, March 9, 2020

Trump "virus!" policy


Payroll tax cut and Universal Basic Income fiscal transfer for lost wages/salary....

Hopefully the payroll tax cut will reduce the current rate of tax deposits and the UBI fiscal transfer will increase withdrawals and we can get some increased UST issuance to exceed the current nutter Fed suicidal policy of buying all the  80b per month of USTs being issued so banks have "more money to lend out!"... 

Nobody can get a UST and bonds are going asymtotic... maybe the Trump policies can result in an increase in the rate of UST issuance and the bond market will settle down..

Then over on the risk side, Fed causing GFC2-lite here this month as the Fed's non-risk Reserve Asset increase is forcing Depositories to temporarily reduce the price of risk assets in order to maintain target leverage ratios ...  Fed plans on continuing this policy until April 15th... that would be 5... MORE... WEEKS... of this shit...

Maybe help is on the way from Trump soon....







8 comments:

Marian Ruccius said...

Clearly it is NOT a UBI (although Matt Franko has cunningly chosen to portray it as one), but a targeted and time-limited income supplement, which is why it is likely a good idea and a good way to support aggregate demand.

Matt Franko said...

Ok Liberal Art grammar police...

Matt Franko said...

There made the adjustment ... happy??? ok now what???? back to "out of money!"????

Matt Franko said...

"Matt Franko has cunningly chosen to portray it as one"

Oh yes! the dreaded "neo-liberal conspiracy!" in action! LOL!!!!!

Marian that is no. 2 here below from you guys:

1. Myth as in "Matt's myth of the UBI!"
2. secret neo-liberal conspiracy! as in "Matt Franko has cunningly chosen to portray it as one"

That's yours here... good job A++++++ ... then

3. evolved from the apes by random chance as in "Matt reached into a box of scrabble game and pulled out the first three letters U-B-I !"
4. superstition as in "Matt believes in the folklore of the UBI he learned from the Sasquatch!"
5. fantasy as in "Matt is having a fantasy of a UBI!"
6. ?

I forget what you guys 6 was again????

Marian Ruccius said...

Matt: you're funny. I write a supportive post with a slight disagreement, and you provide me with this fountain of funny responses.

Maybe my comment was nitpicking, but I think that correct words sometimes matter. I commented on a post by Stephanie Kelton some years ago (and I admire her greatly) to point out that it is important not just to get the sectoral balances correct, but also the grammar one uses. She didn't like that either -- on the basis that American slang was a helpful mode of communication (I said that she should strive for an internationally intelligible discourse).

As for your description of me as a liberal-arts type, you are half right. You have been consistently criticizing liberal arts types for antilogies and non sequitors in how they construct their economic metaphors. Which is fair. But I think you should also recognize that all representation, including the use of numbers, is not the same thing as the object itself. So really, it seems to me that you are just pissed off at the poor quality of some people's analogies.

I welcome the changes you have made, and leave you with this quotation from Buddhist Seung San:



American dog say, 'Woof, woof.' Korean dog say, 'Mung, mung.' Polish dog say, 'How, how.' So which dog barking is correct? That is human beings' barking, not 'dog' barking. If dog and you become one hundred percent one, then you know sound of barking. This is Zen teaching. Boom! Become one.

Seung Sahn

Marian Ruccius said...

By the way, I said "cunning" by way of respect for your acumen, not as a criticism.

Peter Pan said...

Size matters.

Marian Ruccius said...

Bob: that's true, and in fairness to Matt, he is correct when he point out the innumeracy implicit in some of the metaphors used by liberal arts types. But I think he is in error to believe that they do not know that size matters! It is about spin, that's all. And who is to judge what spin is fair and what is not? Not that I necessarily agree with those he criticizes, but they are not always wrong either.