Why US GDP is all income made in the US
A country's GDP is all gross domestic income made in the country. Those with some economics training may already know why this is so, but I would presume that most people are not aware of this. If...
View ArticleSectoral Financial Balance Definitions & Data
Private Financial Balance (aka Private Net Savings): Here is a good definition from economist Scott Fullwiler. "Private sector financial balance or Private sector net savings is the...
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Why the Federal Government should never run a budget surplus
The Federal government should never run a budget surplus, unless there is an offsetting trade surplus. And given that the US runs a large current account deficit (mostly a trade deficit), a budget...
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Why US government debt is not debt
First of all, treasuries are not your debt. If you own US treasuries they are in your asset column. You get interest if you own treasuries, you don't pay it, that much should be obvious. They are...
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Why US government debt is not debt Part 2
Few day ago I posted on why US government debt is not debt? I wanted to add a couple of things. At no point along the chain from your purchase of a Chinese good to China's purchase of treasuries does...
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Is US government debt a burden on our grand children
You hear this a lot these days from deficit hawks. Our current government deficit spending, will result in a higher future tax burden. So better cut back on the debt now, for the sake of our...
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Why the Federal government should never run a budget surplus?
In an earlier post I covered why the US Federal government should never run a budget surplus, unless there is an offsetting trade surplus. And given that the US runs a large trade deficit, a budget...
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No, the dollar did NOT really lose 95% of its value since 1913
There is a chart making the rounds lately, that claims the dollar lost 96.2% of it value since 1900. One of Ron Paul's fav talking points. Though technically true in a very narrow sense, if you look...
View ArticleThe Myth of the Inflation Tax
Last time we looked at inflation as a "tax' from the incomes perspective. We established that the devaluation of the dollar (i.e: price inflation) over the last century is completely irrelevant, as...
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