It appears as though 'trickle down' stimulus is not having its desired effect according to today's Fed Beige Book.
Fed's Beige Book Fails To Stimulate More Lending - Forbes
Jobs Report on Friday.
“Depart from me, you accursed. For I was hungry and you gave me no food, thirsty and you gave me no drink, a stranger and you did not welcome me, naked and you did not clothe me, sick and in prison and you did not comfort me.' They answer, 'Lord, when was it that we saw you hungry or thirsty or a stranger or naked or sick or in prison, and did not care for you?' He answered, 'Truly I tell you, as you did not do it to one of the least of these, you did not do it for me.’”
Matthew 25:40-46
"The historical behavior of interest rates and growth rates in U.S. data suggests that the government can, with a high probability, run temporary budget deficits and then roll over the resulting government debt forever.
'The Gamblers'
The purpose of this paper is to document this finding and to examine its implications. Using a standard overlapping-generations model of capital accumulation, we show that whenever a perpetual rollover of debt succeeds, policy can make every generation better off.
This conclusion does not imply that deficits are good policy, for an attempt to roll over debt forever might fail. But the adverse effects of deficits, rather than being inevitable, occur with only a small probability."
Ball, Elmendorf, Mankiw, The Deficit Gamble
"Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.
When you won, you divided the profits amongst you, and when you lost, you charged it to the bank...You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out."
Andrew Jackson, Andrew Jackson and the Bank of the United States (1928) by Stan V. Henkels
seign·ior·age
/ˈsānyərij/
Noun
- Profit made by a government by issuing currency
- A thing claimed by a sovereign or feudal superior as a prerogative.
CARACAS (Reuters) - Venezuelan President Hugo Chavez has died after a two-year battle with cancer, ending the socialist leader's 14-year rule of the South American country, Vice President Nicolas Maduro said in a televised speech on Tuesday.
The flamboyant 58-year-old leader had undergone four operations in Cuba for a cancer that was first detected in his pelvic region in mid-2011. His last surgery was on December 11 and he had not been seen in public since.
"It's a moment of deep pain," Maduro, accompanied by senior ministers, said, his voice choking.
Chavez easily won a new six-year term at an election in October and his death will devastate millions of supporters who adored his charismatic style, anti-U.S. rhetoric and oil-financed policies that brought subsidized food and free health clinics to long-neglected slums.
Detractors, however, saw his one-man style, gleeful nationalizations and often harsh treatment of opponents as traits of an egotistical dictator whose misplaced statist economics wasted a historic bonanza of oil revenues.
Chavez's death opens the way for a new election that will test whether his socialist "revolution" can live on without his dominant personality at the helm...