Monday, March 17, 2014

Global Plotting: Treasury Secretary Lew Does Brazil

Treasury Secretary Jack Lew is in São Paulo, Brazil today for meetings with senior government officials. While there, Secretary Lew will discuss "steps that economies in the region can take to promote strong, sustainable, and balanced growth". He will also meet with business leaders to discuss the state of the regional and global economies.

In the afternoon, the Secretary will participate in roundtable discussions on the state of the economy with business leaders.

Later, Secretary Lew will meet with Brazilian Central Bank Governor Alexandre Tombini.

In the evening, the Secretary will meet with Brazilian Finance Minister Guido Mantega. Secretary Lew and Finance Minister Mantega will deliver statements to the media at the conclusion of the meeting.


  1. yeah, join us in debt annihilation...................

    March 17, 2014

    Restoring the "Virtuous Cycle" of Economic Growth

    Over the same 14-year period, real U.S. GDP has grown by just 1.8% annually, while real gross private investment has crawled at just 1% annually. The primary growth area of the economy has been total public debt, which has surged at 8% annually, driving the outstanding amount of total public debt to 99% of GDP.
    The sheer dollar amounts are constantly used to argue that this “cash on the sidelines” is on the verge of being “deployed” by moving it "into" equities, capital goods, and so forth. But remember, the liquidity created by the Fed in recent years is a “hot potato” – someone in the economy must hold it at every point in time. It is created by the Fed as a replacement for mortgage securities and Treasury debt, and must be held by someone in lieu of other stores of value. In aggregate, the cash balances are held by corporations in an amount that doesn’t even cover their own new debt issuance in recent years. Moreover, there is zero relationship between such cash balances and subsequent capital expenditure. What you are looking at is simply a mountain of IOUs based on past economic activity. The thing that matters for future activity is whether there are productive and desired opportunities to bring new goods and services into existence.

  2. Did anyone cover Lew's statements to the Brazilian media last night?!!!