Friday, January 13, 2012

debt trap phobia

"in the case of fiscal policy there is a problem of deficit bias: governments over the last few decades have tended, on average, to spend too much or tax too little"
that's one of the authors of the cited paper in the last entry here


see these damn debt buzzards can't leave well enough alone
sure they can say we need stimulus now
but they try to retain reverence for the ancient capitalist gods

you can't
you must state without equivication

"those gods are dead "

hey the instruments are there to maintain proper pub debt/gdp ratiosno matter what string of nattionnal deficits are necessary to maintain hyper employment

once you bust out of the "there is no good inflation" mind set

hey if its wage push inflation
 its good inflation

and debt is a pile of nominal obligations
its real value to be determined by wage  level movement

inflation ??

what of fear of long term negative real returns
what if the pool of private funds dries up ??

werll  that scare shot fails to acknowlege
a contemporary reality

we have a credit system with infinite elasticity

its as if we had cars for 60 years and keep  running them at horse and buggy speeds

no real investment in new or additional productive capacity
need go unfunded with a modern credit based production system

short line:
we  don't need no stinking private investor pool

and certainly we don't need to try maximizing that pool

nor a free range wall street

the last 30 years fairly convincingly establishes what the leads to