Macroeconomics: Budget Balance
Bubble Saving (6/17/2010)
The US has been spending more than it earns and has to borrow from abroad to fund its real investment.
The US has been spending more than it earns and has to borrow from abroad to fund its real investment.
Debt Trap - flash (6/18/2010)
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Deficit and Debt - youtube (11/2/2011)
Chronic budget deficits could lead to a ballooning debt/GDP ratio.
Chronic budget deficits could lead to a ballooning debt/GDP ratio.
Eat Your Cake Now - cartoon transcript (6/22/2012)
Who doesn't like to eat their cake and have it at the same time?
Who doesn't like to eat their cake and have it at the same time?
Eat Your Cake Now - youtube cartoon (11/2/2011)
Who doesn't like to eat their cake and have it at the same time?
Who doesn't like to eat their cake and have it at the same time?
Flows and Stocks (6/17/2010)
The excess of inflows over outflows adds to the stock if flows are not instantly perishable.
The excess of inflows over outflows adds to the stock if flows are not instantly perishable.
Ponzi Schemes (1/22/2010)
Medicare and Social Security are Ponzi schemes whose long-term financial viability depends on an ever larger body of later contributors paying off a much smaller body of earlier contributors.
Medicare and Social Security are Ponzi schemes whose long-term financial viability depends on an ever larger body of later contributors paying off a much smaller body of earlier contributors.
Shaky Union (5/12/2010)
Even though members of the European Union have no control over their domestic monetary policies, their undisciplined domestic fiscal policies can still wreak great havoc for the financial health of the Union.
Even though members of the European Union have no control over their domestic monetary policies, their undisciplined domestic fiscal policies can still wreak great havoc for the financial health of the Union.
