An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Tuesday, July 9, 2024
Warren Mosler Says US Is Spending Too Much — Bloomberg
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.
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“
ReplyDeleteNet 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.
ReplyDeleteThe 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…
ReplyDeleteRisk Assets Prosper When Treasury Debt Issuance Growth Is Slower Relative To Fed Monetization Growth, And Vice Versa
ReplyDeletehttps://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…
ReplyDeleteIf Fed is buying more USTs than Tsy is issuing then reserve assets are being added to Depositories suppressing system Leverage Ratio… it’s bearish…