By Marshall Auerback
There appears to be an emerging consensus that the euro will survive, especially now that Mario Draghi has apparently grasped the nettle and persuaded his colleagues that the ECB is prepared to initiate unlimited purchases of national government bonds in order to underwrite their solvency. Of course, as usual
with the ECB, there’s a sting in the tail, the sting being additional “conditionality” (for which one can read more fiscal austerity) as a quid pro quo. It’s like dealing with Hannibal Lecter.
By Stephanie Kelton
Two of our nation’s most influential progressive journalists — Slate’s Matt Yglesias and Business Insider’s Joe Weisenthal — just took on two powerful economic myths.
1. The Myth that The US Government is Out of Money
2. The Myth that A Government Surplus is a Sign of Fiscal Responsibility
It’s hard to imagine a more empowering message. As word spreads, elected officials in both parties will lose their primary excuse for inaction on on a whole range of neglected and underfunded programs. “I’d love to help, but I’m all tapped out,” simply won’t sell.
Nor will the desperate calls for “shared sacrifice” and “entitlement reform” in the name of fiscal responsibility.
A very big thank you to these men, who will undoubtedly suffer the slings and arrows of many of their progressive followers, who have long considered the Clinton surpluses the crowning achievement of modern Democratic governance.