Röd öppning Red Opening 6 November 2023

Svenskt Näringsliv, organisationen, gör helt om och dömer ut överskottsmålet. 

Krisen i början av 1990-talet blev startskottet för en ny epok i den svenska finanspolitiken.

Sedan dess har finansministrarna – oavsett färg – hållit hårt i plånboken. Göran Persson (S) myntade uttrycket ”den som är satt i skuld är icke fri”. Anders Borg (M) införde sin krona för krona-princip och Magdalena Andersson (S) sparade i ladorna.

Jan-Olof Jacke, vd för Svenskt Näringsliv, anser att det är dags att vrida om den ekonomiska politiken i en ny riktning.

”Det finns inte något som helst värde längre i att fortsätta att pressa ned statsskulden mot noll. 

Läs mer här


Svenskt Näringsliv skrev dessa anmärkningsvärda ord:

"Vi anser att aktiv stabiliseringspolitik inte skall bedrivas."

Sedan bytte man fot. Utan att göra en pudel.

Englund: Svenskt Näringsliv gör helt om, dock utan att göra en pudel (englundmacro.blogspot.com)



Stocks and bonds both staged rallies last week, 

getting a boost when the Treasury increased the size of longer-term debt auctions by a smaller amount than many had expected.

Sam Goldfarb WSJ Nov. 5, 2023 

https://www.wsj.com/finance/investing/markets-got-an-unexpected-boost-from-washington-will-it-mark-a-turning-point-ad12f950






US huge borrowing plans have helped fuel a historic rout of Treasury bond prices,

 pushing their yields to the highest level since the global financial crisis and

raising questions over whether there are enough buyers for all this debt.

As Fed holdings of long-term debt securities already exceed $7tn and it has stopped buying bonds to let existing bonds run off, a big source of demand for them has disappeared.

FT 6 November 2023

https://www.ft.com/content/7dada684-a6cd-413b-9adb-477b34a7a9f6


Ten-year Treasury yields posted their third-biggest daily drop since March

James Mackintosh WSJ 3 November 2023

https://www.wsj.com/economy/central-banking/in-the-long-run-investing-is-all-about-the-economy-7030af33











Collide with the global bond vigilantes

With national contests from the US to India, incumbents seeking another term will be tempted as always to ramp up public spending before the vote. 

That puts them on course to collide with the global bond vigilantes

Battles are most likely in nations where leaders are under the heaviest pressure to increase spending, because their own popularity is so low. 

from India and Bangladesh to South Africa and the US

Ruchir Sharma FT 6 November 2023





Amazon drought sparks fears of climate tipping points

One of the world’s largest rivers and a major tributary of the Amazon, the yawning Rio Negro is a pillar of the rainforest ecosystem that is crucial to the stability of the global climate. But vast sections of the waterway are currently dry.

FT 6 November 2023


2020



Niall Ferguson and Krugman on Inflation Victory

I am not sure Oct. 12, 2023, was the day I’d have chosen to declare victory. Just five days after Hamas and Palestinian Islamic Jihad launched their barbaric rampage from Gaza, 

the Nobel Prize-winning economist Paul Krugman tweeted, “The war on inflation is over. We won, at very little cost.”


There aren’t many papers about how to invest in the event of a world war. Mine is one of the few. 


Takeaway No. 1 is that big wars are inflationary. 
You don’t want to own bonds, especially not those issued by the losing side.

Niall Ferguson Bloomberg 6 november 2023 



We seem close to returning to Fed’s inflation target without paying much of a price at all. 

The conventional wisdom — that we needed a recession to bring inflation under control — was wrong. 

Paul Krugman New York Times 17 October 2023






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