The Traders Crucible

Hi, this is an experiment post for links. I like looking at other peoples links, thought I would try them out here! Of course, this may get migrated to MMR at some point…

Let me know what you think.

• Taylor Rule Founder Warns US Debt Could “Explode” | ZeroHedge : Wow. My goal is MMR takes John Taylor into retirement in three years.
• Do Manufacturers Need Special Treatment? – Economic View – NYTimes.com : More wow. This is a person who doesn’t see the trade deficit is a demand leakage.
• Global Economic Intersection: More must read from GEI
• Another Experiment? – Tim Duy’s Fed Watch : Nobody really knows what will happen when Greece does it’s thing. Ed Harrison is watching closely, I read him to help sort through that morass.
• Greece Wrestles With Needed Spending Cuts – Bloomberg : Why is the private sector part of this negotiation? Hmm..
• Greek private-sector workers reject more pay cuts – The Denver Post
• Fiscal policy will matter | Challenge | Find Articles: This article is full of gold. I am calling this Godley’s Theorem:  ”It is thirty years since Carl Christ, of Johns Hopkins University, had the brilliant insight that should an economy ever reach stationary equilibrium, all stock variables as well as all flow variables would be constant; and that if all stock variables, including government debt, were constant, government receipts would have to equal government payments. It would then follow that if the economy were moving toward stock-flow equilibrium and if taxes were levied as a proportion of income, the GDP of a (closed) economy would always be tracking, perhaps with a long lag, government outlays divided by the average tax rate – the very same concept that we call fiscal stance. Therefore, a necessary condition for the expansion of the economy, at least in the long term, is that the fiscal stance should rise: Government expenditure must rise relative to the average tax rate. If the tax rate were held constant, government expenditure would have to rise absolutely for output to grow; if government expenditure were held constant, the tax rate would have to fall.
• Flying Robotic Swarm of Nano Quadrotors Gets Millions of Views, New Company | Singularity Hub: Beyond Terrifying.
• FT Alphaville » How Germany is paying for the Eurozone crisis anyway: Didn’t I say this about a thousand times in 2010-2011? Germany pays no matter what.
• (Saving…) The silliest set of arguments that have ever been created by serious intellectuals | The Economic Populist : This is for you, Clonal! You’ve probably already seen it…but download the PDF to see just how bad it was for non-financial companies for the last 37 years.