Daily Archives: February 20, 2019


Does America Need Global Savings to Finance Its Fiscal and Trade Deficits?

American Affairs Journal has the L. Randall Wray article Does America Need Global Savings to Finance Its Fiscal and Trade Deficits?

Interesting article by L. Randall Wray. Lot’s of insights. Here is one.

To summarize, bond sales by either the central bank or the Treasury serve the functional purposes of removing reserves from the banks and offering a higher-interest-earning alternative to the central bank’s support rate. If, however, the central bank wants to push interest earnings down toward the support rate, it can engage in open market purchases—taking the bonds out of the system (à la “quantitative easing”).

In his usual style, the beginnings of his article start with a long description and justification for the conventional wisdom, and the latter half tells you why that is all wrong. You have to get a feel for where the switch happens.


Trump: End socialism & Maduro’s reign in Venezuela

YouTube has the video Trump: End socialism & Maduro’s reign in Venezuela.

As US politicians are putting rhetoric against Venezuelan President Nicolas Maduro into high gear, US President Donald Trump gave a speech in Miami calling for Maduro to step down and for an end to socialism in Latin America. RT America’s Manila Chan interviews political analyst Jim Kavanagh to discuss why he considers the Trump administration’s attacks on Maduro as nothing more than “overt imperialism.”


When Bernie Sanders decries the economic situation in Venezuela as if it were created by Socialism, remember this interview. Bernie Sanders cannot possibly be ignorant of this history. You have to wonder what Bernie Sanders is up to. What will he do for us, or to us, if he becomes President. Does Bernie want to lose the war of words with Trump this early in his campaign for 2020?