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China, China, China

China is clearly the cause of Monday’s market chaos. Clearly.

Paul Krugman:

So a stock crash in China triggered a big decline around the world, while I was trying to have a personal life (and succeeding, actually). Leaving aside whether this really made sense, why should events in China matter for the rest of us?

Well, you and I might think that it’s because China is a pretty big economy — a huge buyer of commodities and a significant importer of manufactured inputs too. So when China slumps, you can and should expect knock-on effects elsewhere.

But trust the Republican field to declare that it’s all Obama’s fault. Scott Walker wants Obama to cancel a state dinner with Xi; Donald Trump says that it’s because Obama has let China “dictate the agenda” (no, I have no idea what he thinks he means). And Chris Christie says that it’s because Obama has gotten us deep into China’s debt.

Actually, let’s play a bit with that last one, OK? You could, conceivably, tell a story in which America becomes dependent on Chinese loans; then, when China gets in trouble, it demands repayment, pushing us into crisis too. But any story along those lines has a corollary: we should be seeing a spike in US interest rates as our credit line gets pulled. What you actually see is falling rates:

Oh, why am I even bothering?

But remember: all the experts said that the GOP had an unusually strong field, a very deep bench, a lot of talent running for president.

By |2015-08-25T16:07:42-04:00August 25th, 2015|Economy|Comments Off on China, China, China

Martin Luther King – Riots

“But it is not enough for me to stand before you tonight and condemn riots. It would be morally irresponsible for me to do that without, at the same time, condemning the contingent, intolerable conditions that exist in our society. These conditions are the things that cause individuals to feel that they have no other alternative than to engage in violent rebellions to get attention. And I must say tonight that a riot is the language of the unheard. And what is it America has failed to hear? It has failed to hear that the plight of the negro poor has worsened over the last twelve or fifteen years. It has failed to hear that the promises of freedom and justice have not been met. And it has failed to hear that large segments of white society are more concerned about tranquility and the status quo than about justice and humanity.”

― Martin Luther King Jr.
March 14, 1968

By |2015-04-29T06:39:52-04:00April 29th, 2015|Civil Rights, Domestic Issues, Race|Comments Off on Martin Luther King – Riots

CBO budget outlook is not a cause of celebration

From NYT.com

 

The NYT:

The federal budget deficit will shrink this year to its lowest level since 2001, but the fiscal outlook for the next 10 years is as bleak as ever, the Congressional Budget Office said Thursday.

The budget office estimated the deficit for the 2006 fiscal year, which ends on Sept. 30, at $260 billion. That would be $58 billion less than last year, $112 billion less than the agency estimated in March and even lower than the White House’s most recent forecast.

The improvement is almost entirely a result of an unexpectedly big jump in tax revenue, particularly in corporate tax receipts and what appear to be higher payments by the nation’s wealthiest households.

————–

Center for Budget and Policy Priorities has mo

By |2006-08-18T19:10:53-04:00August 18th, 2006|Budget, Economy|Comments Off on CBO budget outlook is not a cause of celebration
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