Sunday Brunch Breakfast Links

Maybe we need Monty Hall in Washington DC. Boehner and Reid get closer to a debt deal.

Seeing more of this from the left. Ignore the Constitution by using the 14th Amendment. I don’t think either party really wants to go there. If they can’t reach a deal, they will fall back with the McConnell plan proposed over a week ago.

More on the anemic GDP numbers. They are “unexpectedly” low. A key number to look at over the next couple of months will be consumer confidence. A big drop in confidence will signal another recession. Already, we are hearing anecdotal stories about empty car dealers and empty stores.

The end of Obamanomics-which is really the end of Keynesianism. Going to take a few elections and a lot of education to straighten it out. (Both parties by the way)

3 Things You Need to Know about Trade deficits. (it’s not what you think)

Some unrest in China.

The effects of massive debt. One effect, you lose personal freedom.

I back Andrew Breitbart on this issue as well.

Will CME Group ($CME) move? Who knows. Illinois politicians should not take their statements as an idle threat to get bargaining leverage.

  • Anon

    You should reread and consider what is being said in point 2 of the “3 Things You Need to Know about Trade deficits” article.  Other nation’s desire to import goods to the US gives them a surplus of US dollars.  At that point their primary choice is to either hold the dollars or exchange them for treasuries and earn some interest.  This is what creates the demand for our “debt” if you want to call it that.  People want to save in dollars.  As long as we are productive and other countries want to trade with US there will always be demand for our debt.  

    The article “Effects of massive debt” is completely of base.  He compares the government balance sheet to that of a household.  There is no comparison to be made because households actually have to earn or borrow dollars in order to spend.  The US government is not revenue constrained so his analogy is totally flawed.