Personal Economics 101

S ome people think America's main fiscal problem is the gap between the two lines. In other words, they worry about deficits and debt. But the real problem is government spending. And that's true whether the spending burden is financed by taxes, borrowing, or printing money. Full story here .

Technically, because GDP was negative for two quarters, it's a recession. However, there are caveats to current economic conditions, which mean if it is a recession, it's very mild. And there's still that pesky 2yr/5yr bond rate inversion (2.9/2.72). It's inflation that is the beast, which will undo everything.   T he GDP Price Index came in at an 8.7% increase, well above expectations of an 8.0% gain and compared to the unrevised 8.2% rise seen in Q1. By Kelly Evans The Exchange , CNBC Why was real GDP negative in the first half of this year? Because inflation ate up all the gains. The bombshell report this morning showed that real GDP shrank again in the second quarter, by 0.9% annualized, after a 1.6% drop in Q1. But wait, how can real GDP be shrinking while the labor market at the same time added 2.7 million jobs, and the unemployment rate fell from 4% to 3.6%? Because inflation ate up all the real economic gains. Nominal GDP--actual dollars before any adjustment fo...

In the race for Texas governor, Beto O'Rouke keeps claiming that he'll fully fund education. But it's already over-funded, and without the legislature, he can't do anything. Empty promises. Currently, more than $60 billion is spent on Texas education (not including universities).