Tag Archives: deficit reduction

Promises for America

Posted on September 21, 2012 by Devin Smith | 17 comments

The polling since the conventions shows that Democrats are doing better than expected. President Obama now apparently has a clear lead over Mitt Romney. Democratic Party control of the Senate seems likely to survive this election year of many more Democratic rather than Republican Senate seats up for election. And, even in House races, it looks like the Democrats will pick up a number of seats; though whether they can pick up enough seats to take back the House is still an unlikely prospect, and without the House President Obama’s second term is likely to be much like his last year and three-quarters, rather than his first two years.

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Posted in Joe Firestone

Tagged deficit reduction, deficits, MMT, modern money theory, national debt, Promises for America

Alan Grayson’s Right; But He Misses the Larger Point

Posted on September 14, 2012 by Devin Smith | 9 comments

By Joe Firestone

Alan Grayson’s e-mail on Moody’s warning that it might reduce the US’s AAA rating, suggested that Moody’s was either threatening a downgrade because it wants to get the Bush tax cuts for the rich extended, or, alternatively, that “Moody’s is living in what Aristophanes called “Cloud Cuckoo Land.”” He says this because Moody’s is upset about the possibility that the US may go over the so-called “fiscal cliff,” even though if it did, it would theoretically result in $560 Billion of deficit reduction annually, without further legislative changes, and it makes no sense on the surface for a ratings agency to think that the risk of US bond default is greater when the annual deficit is being reduced by $560 B per year, than by some lesser amount, which is likely to happen if Congress doesn’t take us over that “cliff.”

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Posted in Joe Firestone

Tagged 14th Amendment, Alan Grayson, Bill Mitchell, bond vigilantes, debt issuance, deficit reduction, deficits, fiscal cliff, Mike Norman, MMT, modern money theory, Moody's, national debt, PPCS, Proof Platinum Coin Seigniorage, Ratings Agencies, Standard & Poor's, Trillion Dollar Coin

No Plan B?

Posted on September 12, 2012 by Devin Smith | 11 comments

By Joe Firestone

Bob Woodward’s releasing a new book, so we are now seeing articles based on it. A few days back, The Washington Post published the “Inside story of Obama’s struggle to keep Congress from controlling outcome of debt ceiling crisis.” This account is a pretty downbeat one of how our political leaders and President Obama handled the debt ceiling crisis of the summer of 2011. I want to comment on what for me was the most salient point: that during the crisis, the President had no “Plan B” to get around the debt ceiling beyond negotiating a deal with Congress.

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Posted in Joe Firestone

Tagged 14th Amendment, Bob Woodward, CNN, debt ceiling crisis, deficit reduction, deficits, entitlements, grand bargain, Jack Balkin, MMT, modern money theory, national debt, paul jay, PPCS, President Obama, Proof Platinum Coin Seigniorage, Social Security, Trillion Dollar Coin, Yves Smith

No, Barack, It Just Ain’t Gonna Happen!

Posted on September 9, 2012 by Devin Smith | 13 comments

By Joe Firestone

Who else thinks the President’s speech didn’t include any plans to create the 29 million full-time jobs for the dis-employed? Please raise your hand!

About jobs he said:

”We can help big factories and small businesses double their exports, and if we choose this path, we can create a million new manufacturing jobs in the next four years.” Continue reading →