Posts Tagged ‘Federal Reserve Board’

Are Low Interest Rates Masking Future Deficits?

Thanks to artificially low interest rates, the United States has been able to finance deficits exceeding $1 trillion every year from 2009 through 2012 at very low cost. Throughout the period, the ratio of interest to the GDP has remained almost stable and is not expected to start rising until 2015. Some argue that this […]

Uncle Sam’s Trillion-Dollar Portfolio Partly Offsets the Public Debt

When policy folks talk about America’s federal borrowing, their go-to measures are the public debt, currently $12 trillion, and its ratio to gross domestic product, which is approaching 75 percent. Those figures represent the debt that Treasury has sold into public capital markets, pays interest on, and will one day roll over or repay. These […]

Uncle Sam’s Growing Investment Portfolio

The federal government has been borrowing rapidly to finance recent budget deficits. But that’s not the only reason it’s gone deeper into debt. Uncle Sam also borrows to issue loans, build up cash, and make other financial investments. Those financial activities have accounted for an important part of government borrowing in recent years. Since October […]

Is the Trillion-Dollar Platinum Coin Clever or Insane?

Policy wonks are debating whether a trillion-dollar platinum coin would be a clever or insane way for President Obama to play hardball with Republicans in the upcoming debt limit battle. Here’s what you should know about this crazy-sounding idea: 1.     A legal loophole gives the Treasury Secretary apparently unlimited authority to mint platinum coins. Treasury […]

Obama: ISO Economists

In 2008, Barack Obama brought an all-star squad of centrist and center-left economists to the White House. Now, as he confronts a critical turning point in the economy and his own political career, he can barely field a team. Much as I hate to admit it, politicians need economists, especially in campaign season. Their most […]