tag:blogger.com,1999:blog-2761684730989137546.post528840685099210587..comments2024-03-29T09:32:34.853-04:00Comments on Mike Norman Economics: Stimulus Spending Is "Hurting the Economy," Says Brian Wesburymike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-75538365519841834652010-09-03T18:48:30.148-04:002010-09-03T18:48:30.148-04:00Nice Franko.Nice Franko.Mike Sandiferhttps://www.blogger.com/profile/04266779805691997171noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-42725458716832745992010-09-01T14:00:11.785-04:002010-09-01T14:00:11.785-04:00From Scott Fullwiler's paper put out this week...From Scott Fullwiler's paper put out this week:<br /><br />"according to both the tactical and accounting logics, taxes credited to the Treasury’s account and the settlement of Treasury bond auctions can only occur via bank reserve accounts, while the original source of banks’ balances in their reserve accounts can only be previous government deficits (which are net credits reserve accounts) or loans from the Fed (repos, loans, purchases of private securities, or overdrafts—note that an outright purchase of a Treasury security by the Fed to add reserve balances requires a previous government deficit). Therefore, it very much is the operational reality that for taxes to be paid or bonds to be settled, there has to have been previous government spending or loans from the Fed to the non-government sector"<br /><br />The End! (Except for MORONS!)Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-18483881342314989562010-09-01T11:54:12.497-04:002010-09-01T11:54:12.497-04:00Krugman eviscerates him on his record.
Wrong
Of ...Krugman eviscerates him on his record.<br /><br /><a href="http://krugman.blogs.nytimes.com/2010/08/31/wrong/" rel="nofollow">Wrong</a><br /><br />Of course, as you point out, MIke, he has no idea of how the monetary system works. He thinks that the US government has to tax to fund itself or borrow to finance itself, when it has a monopoly on currency issuance. What does he think "fiat" means anyway? Pathetic.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-87803258863509472202010-09-01T08:58:13.019-04:002010-09-01T08:58:13.019-04:00I saw this interview and I found it to be pathetic...I saw this interview and I found it to be pathetic. I used to like Brian Wesbury, but now I think he has just become a joke. I don't know what he's practicing, but it ain't economics, I can tell you that. To say that a dollar in stimulus results in a negative effect is absolutely ludicrous. Even if we accept his premise, that the government must borrow first before it spends, the the act of spending via borrowing just shifts demand from one sector of the economy to another. It's a form of income redistribution and CANNOT result in a result less than the dollar that was borrowed. However, readers of this blog know that the government spends by simply marking up bank account balances, so that adds to the financial wealth of the non-governnment. Only in that way does the public have the money to pay taxes and meet their desired savings targets. Wesbury is just a joke.mike normanhttps://www.blogger.com/profile/03296006882513340747noreply@blogger.com