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Sunday, January 27, 2013

James K. Galbraith — Is This the End for the Deficit Drones?

Public opinion is turning on those who seek to cut our social safety net.
AlterNet
Galbraith: Is This the End for the Deficit Drones?
James K. Galbraith | Lloyd M. Bentsen Jr. Chair in Government/Business Relations and Professor of Government, University of Texas at Austin

10 comments:

  1. Chronism , Malfeasence and Corruption will bring the US finanical system down:
    Result of the above actions if continue to be unchecked will be risk is perverted from its original true form.

    " FORCED RISK TAKING: (mispriced risk)
    * Speculate and gamble versus investment.
    * Spend versus Save, savers are penalized
    * Leverage and gearing due to small returns and easy low cost credit

    MONEY:
    * Federal Reserve Note (no longer a store of value)
    * Lower living standards due to reduced real disposable income

    Open Loop System:
    * No corrective action or pain
    Deferral of Problem

    Bernanke should be arrested for not upholding the constitution, he swore to uphold. He has lowered the standard of living and the welfare of the american people at the sametime enriched a few elite people on the inside with his meddling and price fixing. Political inside chronism with Santorum and George Bush. IBM, EXXON,GM,John Deere, GE, Dupont Verizon, and most of the big corporate monopolies receive 600.00 dollars per year, per retiree to shift these retirees on to the prescription drug medicaire program.Corporates have dumped off the obligations of retiree benefits medical prescription drug costs, on to the American Tax Payer. GM gets a tax free check for 8 billion a year due to this bill. This was done with George Bush and Rick Santorum's need for lobbyists money to get re elected. DE gets over 300 million tax free check from government every year. This happened with George Bush second election bid's need for money. Santorum and this bill is breaking the country. So guess what's next with the corporate monopolies and Rep. Ryan? Step one unload retiree obligations of the employees who built their wealth on to the taxpayers, NOW STEP TWO: Attempt at an austerity cut to the same programs. Iceland would never stand for this bullshit. Thier people are aware that banks are not to be considered as a holy church, but as another business sector with the same antitrust problems as all other sectors.
    I will be watching for more of the same happy horse shit like the permanent tax breaks given to hedge funds and the tax breaks given to workers were made temporary. THROW THE BUMS OUT!!

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  2. "Federal Reserve Note (no longer a store of value)"

    ?? How the hell can a dynamic liquidity unit in a dynamic economy be expected to be a store of value?

    Someone gotten their static and dynamic value definitions seriously mixed up.

    Earth to Bob, "fiat" liquidity was never intended to be a stable store of value;
    liquidity is not stability;
    static is not dynamic;
    Where did our schools go wrong?

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  3. confidence confidence confidence, IF no one believes in the store of value of something that is corrupt it will fail, guaranteed. GOLD CONTINUES TO BE BOUGHT UP BY KAZHISTAN AND RUSSIA, PAY ATTENTION TO THE ACTION OF THE OTHER PLAYERS HERE, they are not buyin the sales pitch by Bernanke, and TIMMAH has done his hand work well.

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  4. Pension funds (if there are any left) base their financial investments of the interest rate of the 30 yr and 10 yr bonds, and guess what, thanks to Bernanke there is no return to match the inflation in food and fuel etc, that the hedonics aholes say doesnt exist. The players in this system of the central bank and member banks have fantasy wishes that they can keep getting away with the ponzi scheme. My pension fund has to take excessive risks to keep Bernanke and his merry band of thieves in the bonus business each year. I wish I was the attorney general boy would I stir up the pot.

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  5. I got a comment from an acquaintance recently with the reference to money as a store of value, and proclaiming doom because we are no longer on the gold standard. I don't see how a system where individuals are saving gold provides a better outcome for a society as a whole. I guess these Austrian types envision a world where people outside the system (aliens) have an insatiable demand for gold. It seems that this might have been the case in days of old, but I don't think that holds in this day and age...

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  6. I don't agree with Galbraith. While people may not agree with cutting or eliminating entitlements, the question of debt and deficits continues to rank high among the electorate. More importantly, people have been "fed up" before. The voted for "change" in 2008 and 2012 and what did they get? More of the same. Finally, Obama wants to be remembered as the president who "reformed" entitlements. He will see that this happens.

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  7. My child's school lunch costs $2.50 a day. Should the school project that due to increased costs, one day lunch will cost $4.00. To achieve "sustainability" I will now send my child in with only $1.00. Problem solved, right?

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  8. right Mike, if we dont confront this pervasive fiscal ignorance first we cant make the strongest arguments to support SS and Medicare...

    It comes down to whether we have a plurality that believes that govt has absolute fiscal authority or not...

    to the extent that the populace believes debt and deficits are a problem, they do not believe that govt has absolute fiscal authority and then debt hysteria can even trump SS/Medicare....

    this all comes from unbridled libertarianism...

    rsp,

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  9. Detroit Dan, Those people don't understand sectoral balances and if they do, they don't care about either unemployment or debt-deflationary recession or depression as long as they have their "store of value" they can use to buy up assets at pennies on the dollar. Leeches.

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  10. "they don't care about either unemployment or debt-deflationary recession or depression as long as they have their "store of value" they can use to buy up assets at pennies on the dollar. "

    They'll have to spend a lot of it to protect those assets and themselves…they're outnumbered 1000 to 1.

    Our military can conquer any country including it's own without a lot of effort…peaceful occupation is another matter altogether.

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