tag:blogger.com,1999:blog-53246864840716464.post3973049092821905240..comments2024-02-29T00:46:38.800-08:00Comments on Washingtons Blog: What Both Sides Are Missing In The Debt Ceiling DebateUnknownnoreply@blogger.comBlogger9125tag:blogger.com,1999:blog-53246864840716464.post-40967644898358488982011-07-16T07:44:44.335-07:002011-07-16T07:44:44.335-07:00You're right, we do need to deal with fraud, e...You're right, we do need to deal with fraud, end rampant inequality, and engage in really serious banking reform. I'm wondering if the authors have any comments on peak oil, resource shortages, and debt? See discussions on "Our Finite World" blog, CASSE, the Oil Drum, and other places. <br /><br />Environmental limits to growth are driving the financial crisis. Limits to growth (of which peak oil is currently the primary symptom) means that the growth economy will end. Actually, the growth economy is ending, right now. The real reason we need the reforms you are suggesting (which are all excellent) is because we need buy-in from the entire country that we need to move to a much smaller, steady-state economy.Keith Akershttps://www.blogger.com/profile/03488611629291882615noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-67102018554159209232011-07-15T12:57:13.217-07:002011-07-15T12:57:13.217-07:00A truly fantastically well written and highly info...A truly fantastically well written and highly informative article. Spot on, as per usual.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-67334211856403383322011-07-15T12:07:35.809-07:002011-07-15T12:07:35.809-07:00The US is not bankrupt. Anyone who states this has...The US is not bankrupt. Anyone who states this has zero clue about our economy and even less of a clue about monetary policy. The US has monopoly power over its currency in a floating exchange rate system, thus bankruptcy is a falacy. The only way we go bankrupt is through hyperinflation and that is simply not in the cards as the country is running a balance sheet recession. This is why there is no inflation in Japan after 20 plus years of easy monetary policy. Congress is a joke. The reason we have a deficit is because of Congress. For them to not raise the deficit ceiling is bottomline asinine. They ok'd the spending now they dont want to authorize additonal outlays? It was Congress that authorized two wars, two tax cuts, medicare part b, endless bailouts. Absurd is the only word to describe these nitwits in DC.JayTraderhttps://www.blogger.com/profile/03083309941675377474noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-68204081562004998592011-07-15T10:11:33.324-07:002011-07-15T10:11:33.324-07:00Kucinich and Gravel are also sound! It actually is...Kucinich and Gravel are also sound! It actually is just common sense!Fungus the Photo!https://www.blogger.com/profile/14879977479841544025noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-26254099553213611332011-07-15T10:10:24.077-07:002011-07-15T10:10:24.077-07:00The USA is overextended in so many ways, but if th...The USA is overextended in so many ways, but if they take the Ron Paul path, they will find safe harbour. <br /><br />Stop being a kleptocracy, disband the mil/ind complex, and watch the jobs appear! FIRE economy will shrink,naturally as credit disappears. Abolish the limited liability of corporations! There are now adequate levels of capital available, where needed. This will address the agency problem, OPM, other people's money!<br /><br />America needs infrastructure not wars!Fungus the Photo!https://www.blogger.com/profile/14879977479841544025noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-21242843091197261492011-07-15T08:40:39.694-07:002011-07-15T08:40:39.694-07:00" Our government creates money out of thin ai..." Our government creates money out of thin air with a computer. We don't fund our government with taxes nor "borrowing" from China or anyone else nor will these non-existent "bond vigilantes" create a crisis."<br /><br />Well, yes and no. This poster makes many great points, but this point is true (they do print money from this air) but also not true, as they issue debt in the form of treasuries and that printing from thin air, if not completely mopped up, ends in dilution (too much $$$ supply) which, if it works, ends with inflation if we're lucky, or hyper inflation if we're not, both of which are a form of slower/faster default. The hope of politicians and bankers is that the result is gradual and unseen or unnoticed devaluation of currency, loss of real wealth and lowering of living standards. The fear of logical, responsible people is the thrust of this article. It isn't necessary to pick one bit or another to see the overall truth, that one way or another debt has to be paid or it ends in a form of default. The job of the citizen investor-trader is to preserve wealth in either eventuality.Clear Cuthttps://www.blogger.com/profile/13180413021417992613noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-83318233744868347962011-07-15T07:33:35.542-07:002011-07-15T07:33:35.542-07:00Deficit spending doesn't matter, IF you are sp...Deficit spending doesn't matter, IF you are spending on things that are constructive for the economy.easyplankinhttps://www.blogger.com/profile/15341768486833105435noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-14920742351451285762011-07-14T19:37:55.450-07:002011-07-14T19:37:55.450-07:00Confused like the rest of America. I didn't w...Confused like the rest of America. I didn't watch the video, but I'm 100% certain Michael Hudson is talking about private sector debt, not gov't debt. <br /><br />And really, for a dissenting voice like yours to be referencing IMF studies on US debt is a joke. <br /><br />Please stick to subjects other than economics, your blog is much better that way. <br /><br />Ask yourself: How can the US be bankrupt when their bonds are more in demand now than any other time in history?davehttps://www.blogger.com/profile/16550273573343853028noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-47468037592177333632011-07-14T18:15:05.254-07:002011-07-14T18:15:05.254-07:00What an excellent post...spot on. What is wrong wi...What an excellent post...spot on. What is wrong with most people's thinking is clear with this section: "Niall Ferguson says [...] that any more quantitative easing will lead our creditors to pull the plug."<br /><br />That's a perfect example of someone with a basic misunderstanding of how the economy works. Our government creates money out of thin air with a computer. We don't fund our government with taxes nor "borrowing" from China or anyone else nor will these non-existent "bond vigilantes" create a crisis.<br /><br />The problem, as you correctly point out, is "the government has been throwing money at the big banks instead of the little guy, which - as Steve Keen as demonstrated - is not an effective way to stimulate the economy."<br /><br />We need a works program just like we had back in the Great Depression to fix our infrastructure. Jobs are what drives the economy and until we reach full employment, inflation from government spending will never be a problem (speculation from the rich on the other hand is).<br /><br />As always, the economists at UMKC have it right and if people are truly interested in learning the truth about the economy, they can find everything they need to know at places like pragcap.com and neweconomicperspectives.com, along with this blog of course.SovereignMoneyhttps://www.blogger.com/profile/13614579923710895323noreply@blogger.com