Tag Archive | debt

Clarifying NGDP Targeting

I would like to clarify for all non-economists out there what NGDP Targeting is really about. This article from ZeroHedge claims that NGDP Targeting is synonymous with issuing new debt and inflating old debt away. In fact, issuing debt has nothing to do with it. NGDP Targeting would establish a reliable rate of nominal economic […]

Debt Crisis Update

It’s time for an update on the sovereign debt front. Contrary to what politicians want you to believe, analyzing and understanding the sovereign debt crisis is not that difficult. The WWW is a wonderful source of economic data. Everybody with a computer and internet connection can go to Eurostat.org and download all the data you […]

I Told You So

Here’s what I said one year ago: What is so great about the “Bazooka”? It does nothing to reduce the amount of debt that is going to be in circulation. It doesn’t guarantee debt that is already in circulation. It doesn’t guarantee debt that will be sold to private investors. The real weapon is the […]

Here It Comes

High inflation in Japan is becoming more probably as of late, as discussions emerge about the Bank of Japan monetizing government debt (Bloomberg article). I wrote about third, and last, phase of the Japanese “Debt Miracle” before (see here).

破産を遷延する - Japanese Bankruptcy

The Japanese title translates to “delaying bankruptcy”. Japan is know for its huge amount of government debt. Everyone seems to be baffled by the fact that the Japanese government is still alive, even though its debt share surpasses 200% of GDP by now.

My Debt Ratings vol.2

It’s time to renew my debt ratings again. I changed China’s status from A to B because signs have appeared that my fears of future banking problems may become true. Further, I added Brazil and Japan. The latter was somehow hard to categorize. I decided that Japan’s debt problems are huge but not unsolvable yet. […]

Stop Spending, Stop Spending, STOP SPENDING!

Really, stop spending. Here’s why, from Captain Capitalism.