{"id":54154,"date":"2020-07-13T08:28:37","date_gmt":"2020-07-13T13:28:37","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54154"},"modified":"2020-07-13T08:28:52","modified_gmt":"2020-07-13T13:28:52","slug":"rabobank-we-live-in-a-pretty-crazy-world-right-now","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54154","title":{"rendered":"Rabobank: &#8220;We Live In A Pretty Crazy World Right Now&#8221;"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"Rabobank: &quot;We Live In A Pretty Crazy World Right Now&quot;\">Rabobank: &#8220;We Live In A Pretty Crazy World Right Now&#8221;<\/a><\/h3>\n\n\n\n<p><strong>Crazy World<\/strong><\/p>\n\n\n\n<p>I think we can all agree that we live in a pretty crazy world right now: and that\u2019s an appropriate title for the Daily today too, for reasons that will be explained shortly.<\/p>\n\n\n\n<p>It\u2019s a world where we are seeing staggering increases in public-sector deficits. We have already seen WW2 level spending in the UK, for just one example: and yet&nbsp;<strong>the British Chancellor is now planning to introduce 10 deregulated \u201cfree ports\u201d across the country where UK taxes and tariffs will not apply at all<\/strong>. It\u2019s obviously the inverse tactic of spending more money on left-behind places. Yet will somewhere like Luton hypothetically become the next mini-Hong Kong just because there are no regulations and no taxes to be paid there? We shall see: and those deficits will swell even further. Laffer would approve of course: and using the logic his fans always push for, by cutting taxation to zero, presumably tax revenue will now be infinity.<\/p>\n\n\n\n<p>Equally, it\u2019s a world where despite&nbsp;<strong>one in three Americans worrying about making rent<\/strong>, there appears reticence from the White House to push for a new major fiscal package. Is this all political timing, and huge stimulus looms in weeks? Or do the it-will-all-be-fine arguments from economic advisors like Stephen Moore and Larry Kudlow reflect the official line?<\/p>\n\n\n\n<p>It\u2019s a world where&nbsp;<strong>despite all this state largesse, or absence of state largesse, bond yields continue to move lower anyway<\/strong>: the US 5-year touching 0.25% last week (though at the giddy heights of 0.29% at time of writing) as it does not throw in the kitchen sink; the UK 5-year gilt is at -0.07% even though they ARE throwing in that \u2018no-taxes-here\u2019 sink.<\/p>\n\n\n\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rabobank: &#8220;We Live In A Pretty Crazy World Right Now&#8221; Crazy World I think we can all agree that we live in a pretty crazy world right now: and that\u2019s an appropriate title for the Daily today too, for reasons that will be explained shortly. It\u2019s a world where we are seeing staggering increases in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,12584,24135,24136,855],"class_list":["post-54154","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-government-spending","tag-michael-every","tag-rabobank","tag-viral-pandemic"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54154"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54154\/revisions"}],"predecessor-version":[{"id":54156,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54154\/revisions\/54156"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}