Japan Remains Reptilian It’s a great metaphor, and we can thank a Morgan Stanley economist Osamu Tanaka for adding such poetry to the dismal science: [W]e do not think any full-fledged rebound in personal consumption [in Japan] can be expected, because corporations continue to restrain personnel spending and households’ need to restore depleted savings both […]

US Money Supply Numerous people have commented in recent weeks about the drop in the US money supply over the past few months. The graph below illustrates the concern. “Narrow” money supply (M1) grew more slowly in the end of 2003, but not unusually so. However, the growth in M2 (which includes cash, checking accounts, […]

On the Lighter Side … This is very funny. (Via Cynical-C.) And speaking of funny, read this letter from Rep. John Dingell (D-MI) to Council of Economic Advisors Chairman Mankiw. And no, it’s not a parody, it’s a transcription of the actual letter. Click and see Dingell explain his nomination of the Hon. Mayor McCheese […]

The Triple-X Amendment Democrats need to highlight the idiocy of Bush’s proposed bigotry amendment. I think the best way to do that is to fight to attach bans on turpitude in all its forms: adultery, divorce, fornication, hand-jobs, sodomy, you name it. If it’s not missionary with your opposite-gendered spouse, then by God, the XXVIIIth […]

Andy, Meet Light. See the Light Andrew Sullivan waxes eloquently on Bush’s blatant pander to ignorance, fear, and prejudice: The president launched a war today against the civil rights of gay citizens and their families. And just as importantly, he launched a war to defile the most sacred document in the land. … Not since […]

Jobs in Ohio The number of lost jobs in Ohio (265,000 jobs) is about 90,000 more than Bush’s margin of victory in 2000 (176,000 votes). I’d say that makes Ohio very likely to swing Democratic in 2004. And as GOP strategist Scott Reed recently pointed out, “No Republican has ever been elected president without carrying […]

More Context on the Size of the US Government While I’m at it, here’s another picture providing some more context. Apparently, the US and France also disagree quite a bit about the appropriate size of the government. Rush Limbaugh can add that to the list of reasons why France is evil. This evidence comes not […]

A Picture Worth 1,000 Words Sure, many of you have already seen this picture, or something very much like it. But since I was preparing it for a class anyway, I had it handy and thought you might enjoy seeing it one more time. Plus, long-run context is almost always helpful. Do any features in […]

Roach on Sustainability Stephen Roach of Morgan Stanley is still worried about the sustainability of the recovery: This global rebound is unlike any experienced in the past — it has been unusually dependent on policy stimulus. Can this nascent recovery in the world economy wean itself from these life-support measures and make the all-important transition […]

Is the Current Account Deficit Bad? A commenter over the weekend posed this important question, so I thought I’d take a stab at answering it. The Current Account (CA) deficit represents the total borrowing that a country is doing from other countries. As with individuals, if a country as a whole is consuming more than […]