Economy News

from AIER

Established 1999

New England, USA

Subscribe   Donate

Theodore Cangero

View full profile on AIER.org

  • •

    The Federal Government Comes Up Against the Debt Ceiling

    In 1917 a debt limit was established for WWI Liberty Bonds. The Treasury was allowed to issue Liberty Bonds up to a limit without asking for Congressional approval. This streamlined wartime financing. In 1939, an overall debt limit was established. According to the Bipartisan Policy Center, since the debt limit was established it has been…

  • The Federal Reserve and Government Debt

    •

    The Federal Reserve and Government Debt

    In the past, governments have used seigniorage to finance the purchase goods and services. Seigniorage refers to the government printing money to purchase goods and services. Seigniorage is an inflation tax. When a government prints money, inflation occurs when the money circulates in the economy. The government gets to spend the money first, purchasing goods…

  • •

    Foreigners are Reducing their Holdings of U.S. Treasury Securities

    Federal government debt as a share of GDP is near an all-time high. In the third quarter of 2016, federal debt was 104.8 percent of GDP. In the first quarter of 2016, it reached a record 105.4 percent of GDP. Continuing federal deficits have required the U.S. Treasury to issue debt to cover government spending.…

  • The Federal Debt is Near an All-time High

    •

    The Federal Debt is Near an All-time High

    Throughout its history, AIER has pointed out the dangers of excessive amounts of both private and public debt.

  • A Bitcoin Exchange-Traded Fund

    •

    A Bitcoin Exchange-Traded Fund

    Many individuals would like exposure to bitcoin but do not want to complicate their finances with a bitcoin wallet

  • •

    Government involvement in credit markets: The FHA reverses plans to cut insurance premiums.

    The Federal Housing Administration (FHA) backs millions of mortgages for consumers who would otherwise struggle to obtain credit from private lenders. FHA lending standards are more lenient than private lenders such as banks and credit unions. Consumers with low credit scores and little in savings often seek FHA loans. Traditionally a private lender requires a…

  • •

    Cause and Control of the Business Cycle Today

    The Great Recession was the worst economic downturn since the Great Depression. Like the Depression, the Great Recession was precipitated by a combination of excessive credit creation and misguided government policy. Excessive credit, or purchasing media, makes people feel wealthier than they really are, triggering unsustainable consumption. For decades, AIER has pointed to excessive credit…

  • Why Auto Sales Are Up

    •

    Why Auto Sales Are Up

    Increased sales of both cars and light trucks have been supported by improvements in both the labor market and financing conditions.

  • What Sales and Inventories Tell Us About the Economy

    •

    What Sales and Inventories Tell Us About the Economy

    In any given month, if sales outpace inventories, then firms are seeing strong demand. If inventories rise by more than sales, then demand is likely weak.  The fact that sales outpaced inventories in October helped push our index of leading indicators further into positive territory. Our Leaders Index stands at 58, up from 54 in September,…

  • A Broader Measure of Unemployment Declines

    •

    A Broader Measure of Unemployment Declines

    Even though the U-6 unemployment rate has fallen significantly, it remains high by historical standards.

  • •

    The Federal Government Comes Up Against the Debt Ceiling

    In 1917 a debt limit was established for WWI Liberty Bonds. The Treasury was allowed to issue Liberty Bonds up to a limit without asking for Congressional approval. This streamlined wartime financing. In 1939, an overall debt limit was established. According to the Bipartisan Policy Center, since the debt limit was established it has been…

  • The Federal Reserve and Government Debt

    •

    The Federal Reserve and Government Debt

    In the past, governments have used seigniorage to finance the purchase goods and services. Seigniorage refers to the government printing money to purchase goods and services. Seigniorage is an inflation tax. When a government prints money, inflation occurs when the money circulates in the economy. The government gets to spend the money first, purchasing goods…

  • •

    Foreigners are Reducing their Holdings of U.S. Treasury Securities

    Federal government debt as a share of GDP is near an all-time high. In the third quarter of 2016, federal debt was 104.8 percent of GDP. In the first quarter of 2016, it reached a record 105.4 percent of GDP. Continuing federal deficits have required the U.S. Treasury to issue debt to cover government spending.…

  • The Federal Debt is Near an All-time High

    •

    The Federal Debt is Near an All-time High

    Throughout its history, AIER has pointed out the dangers of excessive amounts of both private and public debt.

  • A Bitcoin Exchange-Traded Fund

    •

    A Bitcoin Exchange-Traded Fund

    Many individuals would like exposure to bitcoin but do not want to complicate their finances with a bitcoin wallet

  • •

    Government involvement in credit markets: The FHA reverses plans to cut insurance premiums.

    The Federal Housing Administration (FHA) backs millions of mortgages for consumers who would otherwise struggle to obtain credit from private lenders. FHA lending standards are more lenient than private lenders such as banks and credit unions. Consumers with low credit scores and little in savings often seek FHA loans. Traditionally a private lender requires a…

  • •

    Cause and Control of the Business Cycle Today

    The Great Recession was the worst economic downturn since the Great Depression. Like the Depression, the Great Recession was precipitated by a combination of excessive credit creation and misguided government policy. Excessive credit, or purchasing media, makes people feel wealthier than they really are, triggering unsustainable consumption. For decades, AIER has pointed to excessive credit…

  • Why Auto Sales Are Up

    •

    Why Auto Sales Are Up

    Increased sales of both cars and light trucks have been supported by improvements in both the labor market and financing conditions.

  • What Sales and Inventories Tell Us About the Economy

    •

    What Sales and Inventories Tell Us About the Economy

    In any given month, if sales outpace inventories, then firms are seeing strong demand. If inventories rise by more than sales, then demand is likely weak.  The fact that sales outpaced inventories in October helped push our index of leading indicators further into positive territory. Our Leaders Index stands at 58, up from 54 in September,…

  • A Broader Measure of Unemployment Declines

    •

    A Broader Measure of Unemployment Declines

    Even though the U-6 unemployment rate has fallen significantly, it remains high by historical standards.