“Negative interest rate” is a phrase seemingly designed to confuse all but the experts. Instead of paying interest on commercial banks’ “excess” reserves held by the central bank, the central bank taxes these deposits. The idea is to impel the banks to reduce their unspent balances and increase their lending or investments. In the case of the European Central Bank, there is a technical reason: to increase the supply of high-class bonds for President Mario Draghi’s ongoing program of quantitative easing. Continue reading
Now the 2013 Report Card grades are in, and America’s cumulative GPA for infrastructure rose slightly to a D+. The grades in 2013 ranged from a high of B- for solid waste to a low of D- for inland waterways and levees. Solid waste, drinking water, wastewater, roads, and bridges all saw incremental improvements, and rail jumped from a C- to a C+. No categories saw a decline in grade this year. …
Dave Johnson, Another Bridge Falls — Fixing Infrastructure Fixes Jobs And Deficits, Campaign for America’s Future, May 24, 2013.
In Seattle another aging bridge has fallen. The American Society of Civil Engineers report America’s 2013 Infrastructure Report Card gives us a D+ and says we are $3.6 trillion behind in infrastructure maintenance. And this is just to catch up, not get ahead.