Relevant and even prescient commentary on news, politics and the economy.

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Watch What I Do…..

…depreciation for leaseholds, restaurants, aircraft, and syndication property; S corporation expansion; AMT breaks; more cross-crediting of foreign tax credits; more tax expenditures for the Big Oil, Big Timber and Big…

Do not confuse American companies with American jobs.

…for production in the United States. Foreign governments, along with large U.S. multinationals concerned about possible foreign retaliation, charge this favors American-based companies. That’s not quite true. Foreign companies are…

OldVet’s Question

I’ve always suspected longtime reader OldVet of consorting with foreigners. Sadly, my worst fears were confirmed just now, when he sent me this e-mail: _____________________________________________________________________ This morning I got the…

Current Account Deficit Sustainability

…of GDP, and net income payments to foreign owners of capital of 4% of GDP. A net foreign asset position of -100% of U.S. GDP is conceivable: Britain, after all,…

The 2005 Current Account Paradox

…world to hold dollar-denominated assets has been made significantly easier by the fact that some foreign central banks have been purchasing huge quantities of dollar assets, as Brad Setser points…