I was having a discussion with a conservative friend recently, and challenged him to write up a budget for a decent life for a responsible, hard-working American: Living in Shoreline, a relatively inexpensive area north of Seattle. Divorced, two kids. Not very smart or capable, but has worked hard their whole adult life. He has […]

Would you believe one fourth full ? No how about one tenth full ? How about not as dry as the Sahara desert ? Recently I asked the question. Keynes dismissed the PIH (well before it re-emerged) as follows when discussing consumption in Chapter 8 of The General Theory … (6) Changes in expectations of […]

Time for a bit of comic relief. (video below the fold)  Julianna reporting on Net Neutrality.  Remember when President Obama said the days of lobbyists setting the agenda was over? I’m posting this here because this is about “markets”.  It is about competition.  It is about freedom.    The free market competition of…wait for it…IDEAS.  It […]

Here, here!  

Paul Krugman is my hero.  I credit him–him alone, really–with ending, finally, the Peterson Foundation’s capture of almost all of the mainstream news media as their PR outfit.  Just as I credit Occupy Wall Street, also alone, with finally ending the decades-long political prohibition of class warfare by any group but the hedge fund/CEO crowd. […]

Barry Ritholtz is talking about the Bull market coming to an end. It is no surprise to me. My equations of effective demand may finally be cracking the code of the business cycle. But I want to say that knowing where the business cycle ends is the ultimate transparency in capitalism. Barry, as usual, makes […]

John Quiggin provides an excellent discussion of macroeconomics. It is much too good to summarize. Just click the link and read. Paul Krugman is also (as usual) brilliant. In particular, I fear he understands the sociology of the profession. I have some comments on Quiggin.

– “Missouri Republicans have drafted a bill that would allow parents to pull their children from science classes that are teaching the theory of evolution. According to the National Center for Science Education (NCSE), Missouri’s House Bill 1472 would effectively “eviscerate” the teaching of biology in the state.” Stupid is as stupid does. “Missouri GOP: […]

If inflation starts to rise or the economy overheat, how can the Federal Reserve raise their Fed rate? One might think it would be impossible with $4 trillion in reserves, but the Fed does have a way. They can simply raise the floor under the Fed rate. What is the floor? The interest on reserves. […]