tag:blogger.com,1999:blog-2098432983500045934.post3893300713719876380..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: Private Debt 2012 (6): Evaluating the Public DebtThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2098432983500045934.post-11923406079402470932012-02-11T15:26:28.353-05:002012-02-11T15:26:28.353-05:00Maybe it would be a way to compare governments, ho...<i>Maybe it would be a way to compare governments, however.</i><br /><br />Now, that would be a project!<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-73946632701334399032012-02-11T15:25:18.305-05:002012-02-11T15:25:18.305-05:00I think we have to find arguments that don't a...<i>I think we have to find arguments that don't alienate people. </i><br /><br />Yeah. I have to remind myself of this all the time - at least about WAYS of arguing. (And still need to be reminded by other people, alas.)<br /><br />But, if an argument, itself, alienates somebody, then the onus is on that person, not the argument, nor the arguer. In other words, don't try to craft arguments in a was that is intended to reach the unreachable.<br /><br />I like to start with facts and data, and try to drill to reasonable conclusions (where, of course, it is possible to go wrong.)<br /><br />But the unreachable are just as likely to deny the data as the drilling.<br /><br />It's classic.<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-74549671947096648012012-02-10T19:11:16.169-05:002012-02-10T19:11:16.169-05:00NOOT:
"It should also be noted that the gover...NOOT:<br /><b>"It should also be noted that the government has the ability to create money"</b><br /><br />That is certainly true. And it is key to understanding why we must separate government from everybody else for "sectoral balances" and similar analysis. But...<br /><br />I think the people who most need to be convinced of things that you and I agree on, are the same people who would immediately reject everything you say, as soon as you get to "the government has the ability to create money".<br /><br />I think we have to find arguments that don't alienate people. (Not that I'm any good at it...)The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-63726212767262084772012-02-10T19:02:35.577-05:002012-02-10T19:02:35.577-05:00Jazz, this link is good I think.
http://www.wikin...Jazz, this link is good I think.<br /><br />http://www.wikinvest.com/metric/Interest_Coverage_Ratio<br /><br />Perhaps the interest coverage ratio is not relevant to government because it looks at <i>what's left</i> of your income after all the bills are paid <i>except</i> interest and taxes.<br /><br />I guess, forget taxes. If we look at what's left of the federal government's income after all the bills are paid except interest, there's probably nothing left.<br /><br />Maybe it would be a way to compare governments, however.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-77405574710540614872012-02-10T17:37:11.959-05:002012-02-10T17:37:11.959-05:00I like that 4VQ graph best, the first one you link...I like that 4VQ graph best, the first one you link. Oh, you can also see in that graph a decline in the red line from 1995-2000 (and beyond) when the budget came into balance ...for a nonce.<br /><br /><b>I wonder if there is enough meat here to develop an Angry Bear post.</b><br /><br />I never heard of this way of calculating the ratio before. That makes it interesting, unless it means it's junk and nobody uses it!<br /><br />I thought it was worth a look: no loose ends and all that. But I did introduce my conclusion with the phrase "For what it's worth".<br /><br />If you can find just a little more source material on the interest coverage ratio, I'd say Go For It!The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-34966388394117671942012-02-10T10:34:20.444-05:002012-02-10T10:34:20.444-05:00Here are the two together. I divided by 100, inst...Here are the two together. I divided by 100, instead of a thousand to scale the curves together.<br /><br />http://research.stlouisfed.org/fred2/graph/?g=4VQ<br /><br />Looks like the sweep up in interest outlays, happens during the Carter administration - probably due to high interest rates, but the break point in revenues clearly belongs to Reagan. <br /><br />I wonder if there is enough meat here to develop an Angry Bear post. If so, what do you think the thrust of it should be? Deficits certainly play a part as well. It's complicated.<br /><br />Here's interest rates and deficits.<br /><br />http://research.stlouisfed.org/fred2/series/INTGSBUSM193N<br /><br />http://research.stlouisfed.org/fred2/series/FYFSD<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-24533705673935760732012-02-09T23:13:19.081-05:002012-02-09T23:13:19.081-05:00Interesting piece of work, Art.
I need to sleep o...Interesting piece of work, Art.<br /><br />I need to sleep on it, I think.<br /><br />I'd also like to see how the numerator and denominator are changing over time.<br /><br />nanute has a good point, as well. A company can go bankrupt. A government with a central bank can't.<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-46715888452041482612012-02-09T04:57:49.962-05:002012-02-09T04:57:49.962-05:00Nicely done, Art. It should also be noted that the...Nicely done, Art. It should also be noted that the government has the ability to create money; private citizens can't.(legally.) With interest rates this low, it seems that there is plenty of room for borrowing by the government to pay down private debt. I'm afraid that if a certain vocal minority holds sway, we'll go the way of austerity and just compound the problem. As Jazz like to say: WASFnanutehttps://www.blogger.com/profile/04526158764171117978noreply@blogger.com