Heterodox
MMT gets a mention. Increasingly, the mentions are not negative, just a statement of the MMT position. That's called educating the public.Looking at the US economy, things are going quite well based on money creation, both through government injection and private credit extension. This is a reason that the Fed is raising rates as part of its reaction function to balance the trend, in addition to its commitment to normalizing after the effects of addressing the global financial crisis...
Read More »Alan Longbon — Good News: U.S. Government Posts A $214 Billion Deficit For August 2018, The U.S. Private Sector Posts A $214 Billion Surplus
Summary The US budget deficit is $214 billion in August 2018; this is a net add of income to the private sector and a bumper month. The good news is that dollars are being added to the economy by the Federal government, allowing the private sector to post a $214 billion surplus. Further, net inflows are expected for the rest of the year from the Federal government and private credit growth. Private credit growth is a big surprise, growing strongly despite Fed rate rises. Seeking...
Read More »FRED Blog — Did the U.S. government just achieve a surplus? : A closer look at our national accounts
Almost all governments run deficits, so it’s a big deal when a government achieves a surplus. This graph includes data for all levels of U.S. government (local, state, and federal) on the net result of their lending and borrowing: A net deficit appears below the zero line, and a net surplus appears above the zero line. Notice the sudden jump in the fourth quarter of 2017 that reaches just above zero? This is a seasonally adjusted data series, by the way, so this jump has nothing to do with...
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