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Tuesday, January 20, 2015

General Economics

News                                                                                                                             
Wall Street Journal | Views of Economy Brighten, WSJ/NBC Poll Finds
An upswing in the U.S. economy has contributed to a surge in economic optimism but provided no similar improvement in the standing of the nation’s political leaders, a new Wall Street Journal/NBC News poll shows.
Wall Street Journal | China Economic Growth Is Slowest in Decades
China’s economic growth slowed to 7.4% in 2014, downshifting to a level not seen in a quarter century and firmly marking the end of a high-growth heyday that buoyed global demand for everything from iron ore to designer handbags.
Wall Street Journal | President, Republicans Aim to Forge Trade Deals
Improved economic and political winds look set to give President Barack Obama a new opening to complete at least one sweeping trade deal, despite reservations within his own party.
Market Watch | MF cuts global economic-growth outlook
Sliding oil prices will give global growth a brief jolt, but the benefits won’t be strong enough to keep the world economy out of a deepening long-term rut, the International Monetary Fund said.

Econ Comments & Analysis                                                                                            
Wall Street Journal | The Window Is Closing on a Trans-Atlantic Trade Deal
Urgency and trade negotiations are seldom mentioned in the same breath, but the window of opportunity to sign the Transatlantic Trade and Investment Partnership is closing fast. In less than a year, the chance to agree on a comprehensive and ambitious free-trade agreement between the European Union and the U.S. may be gone, and the U.K., Europe and America will be the poorer for it.
Forbes | Four Charts To Keep In Mind Before The State Of The Union
On Tuesday, President Obama will give his State of the Union address. He is widely expected to introduce new policies, such as free community college and higher taxes, and to celebrate recent improvements in the economy.

Blogs                                                                                                                             
Wall Street Journal | The State of the Economy, in Eight Charts
When President Barack Obama delivers his annual State of the Union speech on Tuesday, the economy will be as strong and bright as it has been in years.

Monetary

News                                                                                                                             
Market Watch | Fed officials are on track for 2015 rate hike
Federal Reserve officials are on track to start raising short-term interest rates later this year, even though long-term rates are going in the other direction amid new investor worries about weak global growth, falling oil prices and slowing consumer price inflation.

Econ Comments & Analysis                                                                                            
Wall Street Journal | Fed Officials on Track to Raise Short-Term Rates Later in the Year
Federal Reserve officials are staying on track to start raising short-term interest rates later this year, even though long-term rates are going in the other direction amid new investor worries about weak global growth, falling oil prices and slowing consumer price inflation.

Taxes

Econ Comments & Analysis                                                                                            
Wall Street Journal | Tax Reform Should Go Right Down Main Street
In his State of the Union address Tuesday night, President Obama will add steep increases in capital-gains and death taxes to his wish list of reforms designed to help the “middle class.” In reality, however, such steps would hurt the middle class by increasing the already heavy tax burden of many employers.
Market Watch | Obama’s tax plan is like ‘Piketty with an American accent’
The tax plan to be laid out at the State of the Union sounds like it may have been authored by a notable French economist.
Forbes | A Glimmer Of SOTU Compromise? Expanding The Earned Income Tax Credit
Republicans will grimace as President Obama unveils his massive tax hikes in tomorrow’s State of the Union address, however, one policy will receive bi-partisan applause: expanding the Earned Income Tax Credit (EITC).
Forbes | Obama's Bank Tax Is A Great Idea It Just Needs A Little Change
Obviously it didn’t take long for the banking industry to start complaining about the new tax that President Obama has suggested upon the liabilities of the largest banks.

Budget

Econ Comments & Analysis                                                                                            
Real Clear Markets | To Reduce Our Federal Debt Risk, Let's Issue Equity
The problem with the federal debt is not only its size but when it needs to be refinanced. A shade less than 70% of the $16 trillion of outstanding federal debt matures in 5 years or less. A 2% rise in rates would, very quickly, almost double Treasury's interest costs.
Daily Signal | We’ve Been Calculating Budget Scores for Legislation Like Obamacare All Wrong
There is hubris in every government project. The unspoken idea behind bills as comprehensive as the Affordable Care Act and Dodd-Frank is that legislators can understand how a system works, tinker with it and improve it.

Blogs                                                                                                                             
Wall Street Journal | Obama May Highlight Shrinking Budget Deficits, But They Mask Mounting Debt
The markedly improved outlook, likely to get a nod in the president’s State of the Union address Tuesday night, has helped shift the budget debate in Washington away from grand fiscal plans and debt ceiling showdowns to discussions about process and other priorities. But overall debt continues to grow, and the federal government still faces an array of long-term challenges, including rising costs related to an aging population.