It may be that the TPers fear if we are in a Depression that only Government intervention,(War,Shovel Ready Projects),is the Remedy. So,of course,they don't want that;also,if we are in a D,and they are in power,their ideas have to address it,which could be a very uncomfortable position,how does small limited Government,fiscal restraint,Family Values address a Depression in a nation of 300M citizens?
I believe we are in a period of election cycle Repudiation,2006/8 repudiated 2000/2/4,2010 will repudiate 2006/8,and 2012 will repudiate 2010. And the FACT of GD2,repudiates all the economic voodoo of the last 40 years.
In order to facilitate communications on Economics,my premise is that we entered a full blown Depression in July 2007 in which we are now in our 4th year so it's very early in the Depression process. If you disagree with my premise,you have plenty of company,Ben B,TimG,BHO,
Wall Street,The Banks,and most Economists.*
It is peculiar that the Conservatives/Tea Partiers only repeat certain very tame mantras,they aren't discussing the True Unemployment %,and the deeper problems we have along with BHO's utter failure to confront these issues to include Securitization,Shadow Banking,Our Balance Sheet Fraud among dozens of other issues that just won't go away. Why are they so timid,I'm sure MC has an opinion?
*Of Course,in early 2000 when I was discussing the risks to our economy of Securitization/Complex Derivatives having learned that process from Orange County and Enron,the same line-up was in place.
It is stupid,but for different reasons. What neither the Free Marketers or the Keynesians realize is that there's no way to recreate the "demand" that fueled the 70% of GDP that came from consumer DEBT that constituted the American economy from 1988-2007. The demand has been eroded by the Consumer Debt Overhang,not much of which can be discharged by Bankruptcy. (From 1978-2005,the old style Bankruptcy system helped sustain Consumer Demand.) It has also been eroded by an awareness that if we need to obtain something new,all we need to do is go to our basement or garage,and we discover troves of hidden treasure that we have already paid for or already used our MC for.
Hey CK,it looks like Krugman read your post and commented:
"Indeed, there has been a noticeable change in the rhetoric of the government of Prime Minister David Cameron over the past few weeks — a shift from hope to fear. In his speech announcing the budget plan, George Osborne, the chancellor of the Exchequer, seemed to have given up on the confidence fairy — that is, on claims that the plan would have positive effects on employment and growth.
Instead, it was all about the apocalypse looming if Britain failed to go down this route. Never mind that British debt as a percentage of national income is actually below its historical average; never mind that British interest rates stayed low even as the nation’s budget deficit soared, reflecting the belief of investors that the country can and will get its finances under control. Britain, declared Mr. Osborne, was on the “brink of bankruptcy.”
What happens now? Maybe Britain will get lucky, and something will come along to rescue the economy. But the best guess is that Britain in 2011 will look like Britain in 1931, or the United States in 1937, or Japan in 1997. That is, premature fiscal austerity will lead to a renewed economic slump. As always, those who refuse to learn from the past are doomed to repeat it."
http://www.nytimes.com/2010/10/22/opinion/22krugman.html?_r=1
U.S. wants G20 commitment to let currencies rise, Reuters
Excerpt: The United States wants the Group of 20 countries to reduce global economic imbalances by committing to curb trade surpluses or deficits and by letting currencies rise more freely, a senior U.S. official said on Wednesday.
Ahead of weekend meetings of G20 finance ministers in Gyeongju, South Korea, the Treasury Department official made clear Washington wants currency values to be a focal point and sees current account levels as a vital part of the discussion.
China wasn't mentioned by name but Beijing's practice of managing the value of its yuan has angered the United States, which argues the currency's low value is fostering global currency tensions. (Expect a China/US clash this weekend)
LOL,after decades of dogma about Globalization and Free Trade,we change course,not to save the American middle class,but to save Obama,and our "Economic dominance" LOL REDUX.
No we're not,they're irrelevant since they controlled the world currency,and their cost cutting is a pitiful futility. Keep in mind what was said back when by John Connally to our Euro Alies,“The dollar is our currency, but your problem.”
CK,
It no longer matters who controls the Congress or Presidency as regards the nation's fiscal policy as of today. Of course anything can change,but it appears that the die is set on QE2. All this means is that a policy of inflating our currency further is the current tactic of the Fed. The method will be,AGAIN,for the Fed to purchase toxic assets at the value that the Banks place on them. The target is an Inflation rate of 2% which,the hope is,will stimulate demand(if your money goes down in value tommorow,it will be spent today),and decrease unemployment to an official 6-8%rate. The potential negative effects of QE2 are so numerous and complex that we should discuss them individually,but just a few of these unintended consequences could be hyperinflation,civil war,or world war,oh well,anything is better than losing our Imperial Economic power in order to become Western Europe.
I support the Tea Party
Does the TP support QE2?,I haven't heard it discussed. I know that Ron/Rand Paul want to do away with the Fed,is that the TP position?
It may be that the TPers fear if we are in a Depression that only Government intervention,(War,Shovel Ready Projects),is the Remedy. So,of course,they don't want that;also,if we are in a D,and they are in power,their ideas have to address it,which could be a very uncomfortable position,how does small limited Government,fiscal restraint,Family Values address a Depression in a nation of 300M citizens?
I believe we are in a period of election cycle Repudiation,2006/8 repudiated 2000/2/4,2010 will repudiate 2006/8,and 2012 will repudiate 2010. And the FACT of GD2,repudiates all the economic voodoo of the last 40 years.
In order to facilitate communications on Economics,my premise is that we entered a full blown Depression in July 2007 in which we are now in our 4th year so it's very early in the Depression process. If you disagree with my premise,you have plenty of company,Ben B,TimG,BHO,
Wall Street,The Banks,and most Economists.*
It is peculiar that the Conservatives/Tea Partiers only repeat certain very tame mantras,they aren't discussing the True Unemployment %,and the deeper problems we have along with BHO's utter failure to confront these issues to include Securitization,Shadow Banking,Our Balance Sheet Fraud among dozens of other issues that just won't go away. Why are they so timid,I'm sure MC has an opinion?
*Of Course,in early 2000 when I was discussing the risks to our economy of Securitization/Complex Derivatives having learned that process from Orange County and Enron,the same line-up was in place.
unusually stupid
It is stupid,but for different reasons. What neither the Free Marketers or the Keynesians realize is that there's no way to recreate the "demand" that fueled the 70% of GDP that came from consumer DEBT that constituted the American economy from 1988-2007. The demand has been eroded by the Consumer Debt Overhang,not much of which can be discharged by Bankruptcy. (From 1978-2005,the old style Bankruptcy system helped sustain Consumer Demand.) It has also been eroded by an awareness that if we need to obtain something new,all we need to do is go to our basement or garage,and we discover troves of hidden treasure that we have already paid for or already used our MC for.
Hey CK,it looks like Krugman read your post and commented:
"Indeed, there has been a noticeable change in the rhetoric of the government of Prime Minister David Cameron over the past few weeks — a shift from hope to fear. In his speech announcing the budget plan, George Osborne, the chancellor of the Exchequer, seemed to have given up on the confidence fairy — that is, on claims that the plan would have positive effects on employment and growth.
Instead, it was all about the apocalypse looming if Britain failed to go down this route. Never mind that British debt as a percentage of national income is actually below its historical average; never mind that British interest rates stayed low even as the nation’s budget deficit soared, reflecting the belief of investors that the country can and will get its finances under control. Britain, declared Mr. Osborne, was on the “brink of bankruptcy.”
What happens now? Maybe Britain will get lucky, and something will come along to rescue the economy. But the best guess is that Britain in 2011 will look like Britain in 1931, or the United States in 1937, or Japan in 1997. That is, premature fiscal austerity will lead to a renewed economic slump. As always, those who refuse to learn from the past are doomed to repeat it."
http://www.nytimes.com/2010/10/22/opinion/22krugman.html?_r=1
China is playing with a set of books that would make Madoff blush
And We're not?
U.S. wants G20 commitment to let currencies rise, Reuters
Excerpt: The United States wants the Group of 20 countries to reduce global economic imbalances by committing to curb trade surpluses or deficits and by letting currencies rise more freely, a senior U.S. official said on Wednesday.
Ahead of weekend meetings of G20 finance ministers in Gyeongju, South Korea, the Treasury Department official made clear Washington wants currency values to be a focal point and sees current account levels as a vital part of the discussion.
China wasn't mentioned by name but Beijing's practice of managing the value of its yuan has angered the United States, which argues the currency's low value is fostering global currency tensions. (Expect a China/US clash this weekend)
LOL,after decades of dogma about Globalization and Free Trade,we change course,not to save the American middle class,but to save Obama,and our "Economic dominance" LOL REDUX.
You may be right about the irrelevance of the elections
QE2 is a done deal,believe it,no matter who wins in two weeks.
Focus, Rex we’re talking about the UK
No we're not,they're irrelevant since they controlled the world currency,and their cost cutting is a pitiful futility. Keep in mind what was said back when by John Connally to our Euro Alies,“The dollar is our currency, but your problem.”
CK,
It no longer matters who controls the Congress or Presidency as regards the nation's fiscal policy as of today. Of course anything can change,but it appears that the die is set on QE2. All this means is that a policy of inflating our currency further is the current tactic of the Fed. The method will be,AGAIN,for the Fed to purchase toxic assets at the value that the Banks place on them. The target is an Inflation rate of 2% which,the hope is,will stimulate demand(if your money goes down in value tommorow,it will be spent today),and decrease unemployment to an official 6-8%rate. The potential negative effects of QE2 are so numerous and complex that we should discuss them individually,but just a few of these unintended consequences could be hyperinflation,civil war,or world war,oh well,anything is better than losing our Imperial Economic power in order to become Western Europe.