Exit Left, Pursued by a Puma
"The Treasury Department reported Thursday that the federal government ran up a record October deficit of $284.1 billion, double the red ink of the same month a year ago, as revenues declined while spending to deal with the impact of the coronavirus soared."The October deficit was double the $134.5 billion deficit logged in October 2019. It smashed the previous October record of a $176 billion deficit set in 2009, when the government was spending heavily to lift the country out of a deep recession caused by the 2008 financial crisis."
"Senate Minority Leader Charles Schumer (D-N.Y.) and Speaker Nancy Pelosi (D-Calif.) on Thursday morning said the Health and Economic Recovery Omnibus Emergency Solutions (Heroes) Act passed by House Democrats in May should be the "starting point" for negotiations with Senate Republicans and the White House on a new round of coronavirus relief legislation."
"...interest rates at the lower bound despite very large budget deficits indicate that the world's macroeconomic challenge is the effective absorption and deployment of private saving in a world of depleted private investment opportunity."Whether or not you accept the concept of secular stagnation, super low real interest rates indicate an incipient excess supply of saving. This is the ultimate cause of excess leverage, asset bubbles, sluggish growth, and insufficient inflation."