The Money Game Wed 2010-06-09 18:11 EDT

How Deficit Hawks Will Keep Cutting Spending Until We're All On Food Stamps

Marshall Auerback

...Sovereign debt is not a problem as long as the nation's debt contracts is denominated in the nation's currency -- and the nation has control over its own currency (in contrast to the euro zone). The Greek problem is the equivalent of the California problem, where California does not print its own currency...Apparently, we do not yet have the guts to shift from the neo-classical orthodoxy. Chicago school economics is still too much our religion. It persists until we all go on food stamps. The country that detests ideology is too ideological to manage any kind of serious change prior to crisis. As a result, a new crisis is almost certain to come, which will force the change that our elites still refuse to contemplate.

deficit hawk; food stamps; Keep Cutting Spending; Money game.

billy blog Wed 2010-05-19 12:57 EDT

Naked Keynesianism

New York Times columnist and Nobel Prize winner Paul Krugman occasionally brushes up against an understanding of how the macroeconomy works. Some people actually have said to me that he does get it but chooses for political purposes not to disclose a full understanding of the basic principles of Modern Monetary Theory (MMT). Well in his most recent column -- We're Not Greece -- published May 13, 2010, I think you can conclude that when left to his own devices he doesn't have a clue about what is really happening in the macroeconomy. So today, we are exposing his mainstream (neo-classical) keynesian nakedness -- he is now naked and without clothes...

Billy Blog; Naked Keynesianism.