Speaking of missile defense (as I was last week), the saga continues: WASHINGTON – A test of the national missile defense system failed Monday when an interceptor missile did not launch from its island base in the Pacific Ocean, the military said. It was the second failure in months for the experimental program. Certainly all […]
Nouriel Roubini and Brad Setser have a new paper out that speculates about the timing and probable causes of the end of the “Bretton Woods II” exchange rate system that is supporting the current pattern of international financial flows. The paper is rather pessimistic about the system’s sustainability (for good reason), and definitely worth a […]
Imagine a miracle occurs and this Congress cuts government purchases by $110 billion and does not further erode net taxes. This would shave 17.8% off the General Fund deficit ($618 billion for the fiscal year ending 10/31/2004). Would it also reduce the $618 billion trade deficit by $100 billion? Not according to the simulation of […]
As an objection to the phrase “guaranteed benefits”, Cato’s February 11th Daily Debunker cites the 1960 Supreme Court decision in Flemming v. Nestor. They fail to note two things: (a) what the Social Security Administration wrote about this case; and (b) the facts in this case. From SSA: The fact that workers contribute to the […]
It seems there is bipartisan frustration with the new estimate of how expensive this Rx bill will be, so our pseudo-conservative President may veto any proposed changes.
The Economist writes about the increasing share of national income that is being earned in the form of corporate profits: Last year, America’s after-tax profits rose to their highest as a proportion of GDP for 75 years; the shares of profit in the euro area and Japan are also close to their highest for at […]
In his New York Times oped, Dr. Varian clearly distinguishes between the solvency issue facing the Trust Fund and the risk-return choices individuals might rationally make with their retirement portfolios. Alas, Donald Luskin mischaracterizes what Dr. Varian said in order to launch another pointless personal attack as Luskin shows how little he knows about financial […]
Jesse Taylor has been reading some of the latest from the free lunch supply-siders so we don’t have to. Shorter Jesse: last year’s increase in real GDP and tax revenues only partially makes up for the losses in the earlier part of Bush’s first term. But I want to pick up on this from Alan […]
The Bush administration acheived one of its goals today: North Korea on Thursday declared itself a de facto nuclear power, claiming in its strongest terms to date that it had “manufactured nuclear weapons” to defend itself from the United States and saying it would withdraw indefinitely from international disarmament talks. A self-proclaimed nuclear North Korea […]
Cesar Conda’s guest oped makes a point that I can almost agree with: Personal-Account Myths: They’re not the speculative vehicles Democrats want you to think they are… Like the TSP, personal retirement accounts would be invested in a conservative mix of broadly diversified bond and stock funds. Let’s be clear – a shift from a […]