The lamentable state of American political parties has become common sport amongst the chattering classes in DC and beyond. Although, one wonders whether this dysfunction has really been such a bad thing, when considering how united bipartisan “responsible” action always seems to result in yet more budget cuts.
By virtue of the fact that Congress and the Obama Administration couldn’t agree on much for the past few years, America’s deficits got large enough to put a floor on demand. The transfer payments via the automatic stabilisers worked to stabilise private sector incomes and allowed a general, albeit tepid, recovery in the economy.
REAL NEWS NETWORK — “Welcome back to the Real News Network. I’m Paul Jay in Baltimore. And welcome to this week’s edition of The Bill Black Financial and Fraud Report. [Professor] Black now joins us from Kansas City, Missouri. Bill’s an Associate Professor of Economics & Law at the University of Missouri-Kansas City. He’s a white-collar criminologist, a former financial regulator. He is the author of the book, The Best Way to Rob a Bank Is to Own One.
NEP’s William Black appears on Daily Ticker with Henry Blodget. With two days to go before “sequestration” chops an indiscriminate $85 billion out of Federal government spending, the blame game has reached a fever pitch. Bill explains it is dumb economics and some of the short term impacts of the sequester.
You can view the episode at this link. (Sorry no embedding Yahoo videos)
[Yahoo was having technical difficulty - if video is not Henry and Bill, click image of House of Representatives to immediate right of Richard Branson beneath video.]
This post is not about the TDC, although I am a big fan. This is about putting into the MMT conversation a different point of view about Obama. Most MMTers seem to think that the President is a Trojan Horse – attractive on the outside; dangerous, even lethal on the inside. I have a different perspective. What I often do now, when I disagree with someone, instead of arguing, I make one penny bets. The bets need to be about something definite and measurable. If I win, my position on the issue may not be proven, but it is at least partially vindicated.
On Saturday afternoon, the White House ruled out using platinum coin seignorage as a way to defuse the political crisis caused by Congressional Republicans’ unwillingness to raise the debt ceiling. In the words of press secretary Jay Carney:
“There are only two options to deal with the debt limit: Congress can pay its bills or they can fail to act and put the nation into default.”