Federal Reserve flow of funds table F105 shows that the cost of state and local government to citizens has been steadily escalating over the last five years. Taxes and other receipts of state and local government increased 2.7% in 2002, 5.5% in 2003, 6.2% in 2004, and 6.7% in 2005. Most state and local government are not […]

The U.S. Congress, with bipartisan support, is considering legislation that could reduce the flow of funds into the U.S. bond market, cut financing for the War on Terror and support for the real estate market, increase long-term interest rates, and slow economic growth. The purpose of this proposed legislation is to eliminate the trade deficit […]

Despite the high costs of the War on Terror, heavy consumer borrowing, and a recovery in the economy, new bond issues have been falling since 2003, as the graph shows. The four main segments of the bond market are Treasury securities (Table F209), agency securities (Table 210), municipals (Table F211), and corporate and foreign bonds […]