Tag Archives: Fiscal and monetary policy

The Keynesian Dead End: A Watershed Moment

Untitled

John Maynard Keynes had an idea that seemed good at the time (the 1930s): Governments can stimulate an economy with what he called “loan-expenditures” — that is, debt-financed spending. This past week, the UK is paying down its World War I debt, as if we needed a reminder. Debt doesn’t go away; it just accumulates, requiring additional taxes to pay the forever-interest meter and miring its own economy as well as their trading partners. Continue reading

Posted in The Spellman Report | Tagged , , , , , , , , | Leave a comment

Milton Friedman and the Monetarist Reflex: Can the Fed create inflation?

milton

These are complicated times, especially when it comes to inflation. An excess of debt, both private and public, has retarded the spending stream, resulting in sluggish economic growth. Given the Fed’s legislated commitment to prevent financial implosion and unemployment, rounds … Continue reading

Posted in The Spellman Report | Tagged , , , , , , , , , , , , , , , , , , | Leave a comment

The Bond Market Rocket and Fiscal Unsustainability Are On a Collision Path

rocket

Recently, the bond market has been in rocket mode. It has achieved liftoff and slipped the surly bonds of earth. And some believe it will keep going.  The price of the U.S. Treasury 10-year bond recently reached an all-time high, … Continue reading

Posted in The Spellman Report | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment