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The recent depreciation of the pound is the latest in a long line of traumatic incidents for successive UK governments. British politicians were repeatedly confronted with the terrible threat of currency depreciation during the postwar era of 'fixed but changeable' exchange rates.
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The existing monetary and fiscal policies are self-destructive.
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The credit cycle drives the business, or trade, cycle. It should be obvious that changes in the quantity of money, mostly in the form of bank credit, have an effect on business conditions. Indeed, that is why central banks implement a monetary policy. By increasing the quantity of money in circulation and by encouraging the banks …
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Maybe “budget” wasn’t really the word they were looking for. How else to explain the face of bipartisan agreement to a two year “budget” deal that lifts the debt limit and increases federal spending by $300 billion. If that’s their idea of “budgeting”, let’s just be grateful they didn’t call the agreement “Splurge 2018”. This …
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California’s 2020–21 $202 billion state budget spends about three times as much per state resident, adjusted for inflation, compared to California’s 1990–91 budget. And this is after $20 billion of COVID-19 related budget cuts. But as you look around the state, you will not see this much higher spending at work. You will instead observe …
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The current U.S. budget deficit could soon exceed a record $4 trillion. The massive borrowing is being driven both by prior budget profligacy and a hurried effort by the Donald Trump administration to pump liquidity into a quarantined America. The shutdown has left the country on the cusp of a self-inflicted economic collapse not seen …
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In an effort to “fight” the consequences of the politically orchestrated “lockdown,” the Fed pumps vast amounts of money into the economy. It injects base money into the banking system. It also monetizes outstanding debt and finances the US administration’s deficit spending policy by issuing new money. This not only increases “excess reserves” in the …
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Today’s initial unemployment insurance claim figures show a massive 9.9 million people have enrolled onto the program in just two weeks (6 percent of the civilian labor force). Faced with obvious mounting economic pain, politicians will be under pressure to go further in delivering economic support. Worryingly, they appear to be losing sight of the …
The recent depreciation of the pound is the latest in a long line of traumatic incidents for successive UK governments. British politicians were repeatedly confronted with the terrible threat of currency depreciation during the postwar era of 'fixed but changeable' exchange rates.
