Deficits Matter Again - The New York Times

[ish mailian]

Krugman is right to criticize the Republicans for their hypocrisy on
deficit spending and taxes. And he is right to remind readers that
they, and the idiots, some of them economists, though few of them
Keynesians, who argued that Fed policy, the only policy available to
Obama once the Repubs took control of the congress, would cause the
dollar to collapse and inflation to rise, were wrong,
macro-economically  wrong. That deficit spending would compound the
problem because debt to GDP ratio is a drag on the economy and drives
of interest cost (unless of course you are Japan or...well....as
Krugman points out, not Greece). One wonders if they got their asses
kicked in metals and "hard currencies" or if they bet against their
bullshit and made a fortune in the bond, stock and dollar denominated
markets. Actually, we don't have to wonder we can check since so many
of them set policy, not at the Fed, but on Wall Street. But Wall
Street, the banks were turned into Utilities by the crisis and so the
banks couldn't place bets. Not as they had, not as they wanted to. Now
that they have control we can expect them to roll back all those
regulations and lever up the casino desks again.

It's good to be the reserve currency king. It's good to be America. If
only the idiots in charge would give a little bit to us poor and
ordinary people, we the people, America. Oh, that's right! We've got
Trump to do that. Right?

Not that Bernie of Hillary would have looked out for us poor bastards
but at least we wouldn't be worrying so much about the bomb again.



On Mon, Jan 9, 2017 at 5:11 AM, Mark Kohut <mark.kohut at gmail.com> wrote:
>  On that inflation and bond market thread.
>
> http://www.nytimes.com/2017/01/09/opinion/deficits-matter-again.html?emc=edit_th_20170109&nl=todaysheadlines&nlid=3625990&_r=0
>
>
> Sent from my iPad-
> Pynchon-l / http://www.waste.org/mail/?listpynchon-l
-
Pynchon-l / http://www.waste.org/mail/?list=pynchon-l