by reader Matthew McCosker I can credit two sources that have shaped my thinking on both economics, politics (I am quite apolitical these days), and finance. One is the Angry Bear blog, and the second is Warren Mosler.On the bus this morning, I was glued to a post at Warren Mosler’s blog, where he responds […]

Reader Matthew McOsker writes: What Bush II and Clinton Got Wrong On The Economy First, we start off with sectorial balances. Trade deficits must be offset by government and/or private deficits. For example, if we had a $50 billion trade deficit, then that needs to be offset with a $50 billion government deficit. Otherwise, the […]

Reader Matthew McOsker writes more on the deficit: History Lesson – Deficits as a % of GDP, Tax Rates DISCLAIMER: This is not a defense of Bush II. Just the facts on the deficit, and a further discussion of sectoral balances and some tax rate info. Let’s look at some history, because the belief is […]

Guest post:  From reader McWop who has been a constant for a number of years, aka Matthew McOsker, writes on: How money enters the economy through deficit spending. A simple model for discussion. When the government deficit spends here are the mechanics: a) Government buys goods from some private entity, let’s say $1,000 worth. The […]