Friday, April 29, 2016

Everett Rosenfeld — Icahn: Republicans don’t understand economics and it’s killing the country

The Republican Party that I used to be more sympathetic with — I'm right in the middle now, although as you know I'm for Trump — but what I would say is Congress is in this massive gridlock," he said, explaining that the Republican-controlled body is "obsessed with this deficit to a point that I think it's almost pathological."

The result of this gridlock and a lack of fiscal stimulus has been that the Federal Reserve has been forced to keep interest rates low, and that has created "tremendous bubbles" and "the wealth gap."

Additionally, worrying about a deficit when there is no significant inflation and the dollar remains the global reserve currency is not a smart way to govern, Icahn said, adding that "a country is not a company."…
CNBC
Icahn: Republicans don’t understand economics and it’s killing the country
Everett Rosenfeld

11 comments:

Matt Franko said...

"Republican-controlled body is "obsessed with this deficit to a point that I think it's almost pathological."

Ha they are not the only ones...

Ignacio said...

Well Icahn, welcome to the club of being ignored and called insane ("the govt is not a household or a corporation you say!?").

Expect Zero Hedge having an article soon on how you are a filthy Keynesian yadda yadda yadda.

Roger Erickson said...

"Managers" in both parties DO understand, and flat out don't care.

https://plus.google.com/104140272098689841413/posts/PVxsrJmuvV5

Tom Hickey said...

Expect Zero Hedge having an article soon on how you are a filthy Keynesian yadda yadda yada.

The tell. Icahn finds himself agreeing with Krugman on this. He has just walked the plank as far as conservatives go.

Roger Erickson said...

Icahn breaks one bubble, and expands his horizons into Krugman's bubble.

SOOOO impressive. :(

Michael Norman said...

Wow. Powerful statement by Icahn.

Schofield said...

What's so hard to understand. Life works on the basis of a signalling process to enable adaption to change. Money is an extension of that signalling process and if it doesn't circulate fast enough along with equitable distribution an economy will under-perform for a majority of its citizens. So the issue is simple enough for the politicians set dogma and vested interests aside and identify how an optimum amount of money can be generated for the economy.

Tom Hickey said...

Right. Munnie is essentially information and whoever controls munnie controls the signaling process.

This is why banks want to be in the driver's seat in money creation and keep the government out, except as the provider of liquidity and recapitalization when things go south for the banks, which is one of the bugs of capitalism.

Roger Erickson said...

Downside is that aggregate outcomes are the sum of narrow perspectives.

The net perspective can sum to less than, equal to or more than the sum of the parts & perspectives.

The intelligence of a public aggregate is held in it's body of discourse, not in what the isolated components know, scream or fuss about.

Matt Franko said...

Well Roger sometimes there are specialists who administer the different areas...

Medicine, aviation, CPAs, architects, etc...

Roger Erickson said...

Yes, Matt,
But ONLY if the aggregate delegates responsibility to them, and then actually LETS them do their job.

Even then every process is sooner or later too important to be left to the presumed process owner, just as war is too important to be left to the generals.

Public discourse has to keep up with change in context, or all data soon becomes out of paradigm to the latest context.