Free Markets, Free People

Economic Statistics for 18 Sep 12

The following US economic statistics were announced today:

The U.S. current account deficit improved sharply to -$117.4 billion in the second quarter from a revised -$133.6 billion in the first quarter.

Net foreign demand for long-term U.S. securities rose from $9.3 billion in June to $676.0 billion in July.

The NAHB housing market index in September rose another 3 points to 40, for the fifth straight rise to the best level since early 2007.

Retail Sales: Redbook reports year-over-year retail sales growth of 2.4%, weaker than last week, but still moderately strong. ICSC-Goldman reports a -2.5% sales decrease from last week, and only a 2.1% increase over last year.

Dale Franks
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3 Responses to Economic Statistics for 18 Sep 12

  • Democrats Will Let Tax Cuts Expire

    Senator Patty Murray of Washington, a member of the Democratic leadership, said on Monday that her party is prepared to allow all of the Bush-era tax cuts to expire and for automatic spending cuts to kick in unless Republicans give up their opposition to tax increases on the wealthy.
    Ms. Murray’s tough line, in a speech at the Brookings Institution, signaled a stiffening of Democratic resolve a week after President Obama reiterated his demand for a one-year extension in the Bush-era tax cuts only for people earning less than $250,000. The Murray speech kicked off intense counterattacks from Republicans who charged that Democrats are steering the nation back into economic recession.
    “In their near-fanatical crusade to inflict even more pain on American businesses, Democrats are now openly admitting that they plan to wait until this debate reaches full throttle and Americans are panicked about the outcome to do anything, because they think it will make it likelier they’ll get their way,” said Senator Mitch McConnell of Kentucky, the Republican leader. “And if they don’t, then so be it. They’re ready to accept the economic and fiscal consequences.”

    If Obama wins, I think they will abort this, but if Romney wins, this will happen if the Democrats have any say.

  • According to Congress’ Joint Committee on Taxation
    end Bush cuts for > $1 million generates $366 billion over 10 years
    end Bush cuts for > $250k generates $829 billion over 10 years
    end Bush cuts for everybody generates $3.6 trillion over 10 years
    With the FY2012 deficit north of $1.1 trillion or north of $11 trillion over 10 years
    So, if we let the bush cuts expire and make the increase then an additional 200% larger (total raise by 3X), we might be able to balance the budget (until the Law of Unintended Consequences kicks in and all sports are off-shore).