An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Tuesday, November 25, 2008
Christina Romer: Obama's choice for Chair of the Council of Economic Advisors
In case you were wondering. Talking points below taken from Brad DeLong website:
Talking Points on the Designation of Christina D. Romer as the Candidate to Be Nominated to the Senate for the Post of Chair of the Council of Economic Advisers
World-class expert on the Great Depression: if you want to avoid any of the mistakes made during the Great Depression, she is the one to hire.
World-class expert on monetary and fiscal policy: encyclopedic knowledge of their history--since we need a CEA chair who knows more about stabilization policy than about tax or labor or industrial organization policy.
Very good at explaining economics: great similarities between teaching Econ 1 and teaching the White House staff about economics.
Very good at making people believe that relatively complicated ideas about economics are simple facts of nature.
Bush moved the CEA staff out of the Eisenhower Executive Office Building:
A very bad thing because the CEA staff can no longer look over the shoulders of the White House staff and offer advice.
CDR should demand, as a condition of appointment, that at least her two deputies have offices in the White House complex.
A center-left moderate:
But these are not moderate times. To be moderate now is to be radical. To be radical is to be moderate.
If everything is Clintonian again, then will the new administration try to be as good, here were the vectors :
ReplyDelete1. lower spending ( not much )
2. low priced commodities
3. easy to get jobs
4. interest rates not at Japanese last ditch hail mary levels
5. strong dollar
6. cheap air fare to international locations
The recent oil bubble was a reaction by the oil elite to get back at Clintonomics which drove the price of oil very low as well as gas thereby creating a very hungry oil power play to follow
The recent speculative prices were only speculative on the tip of the iceberg ... The unseen rest of this iceberg was pure collusion which no one seems to be even trying to uncover.
We are see the unraveling of a colluded oil market.
OR - can look at cheap gas by Clinton as a subsidy of somekind
if the true pricing of gas was not known.
Nobody knows the true price of gas and oil because it is subsidized around the world or taxed beyond recognition like in the EU
If demand is restored due to Obama policies/stimulus, etc then oil prices will go right back up again. We have done nothing to address speculation and investment-driven demand.
ReplyDeleteOpec will also cut output to eliminate the glut and they will be very reluctant to raise output down the road. Oil prices next time around may surpass the prior peak of $147.
ReplyDeleteshort term : renewables will be soft but cheap to buy actual hardware
ReplyDeletelong term : renewables will be hot if oil prices go up again
sounds like Clintonian will not be able to be revisited ( i.e. low energy & commodity prices )