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Net spending is down $242 bln y-o-y. Supposedly, Warren only looks at deficit spending, which is net spending. And it's also the reason why economic growth has slowed by more than half compared to 2023.
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Only spending about 100 billion more than last year at this point it’s about 1.4% increase year over year which is less than “inflation“
Net spending is down $242 bln y-o-y. Supposedly, Warren only looks at deficit spending, which is net spending. And it's also the reason why economic growth has slowed by more than half compared to 2023.
The deficit is savings… people/firms are saving a bit less USDs this year as % of gov net withdrawals from TGA … it’s a free country…
Risk Assets Prosper When Treasury Debt Issuance Growth Is Slower Relative To Fed Monetization Growth, And Vice Versa
https://seekingalpha.com/instablog/910351-robert-p-balan/6038326-risk-assets-prosper-when-treasury-debt-issuance-growth-is-slower-relative-to-fed-monetization
Rate of change not nominal is the key according to Balan.
Completely disagree…
If Fed is buying more USTs than Tsy is issuing then reserve assets are being added to Depositories suppressing system Leverage Ratio… it’s bearish…
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