Tag Archives: Fiscal Policy

Maya MacGuineas: The Profound Fiscal Irresponsibility of Resistance to Facts

Posted on March 17, 2015 by Joe Firestone | 3 comments

Just as every Spring we can count on the Peter G. Peterson Foundation (PGPF) to do a supportive press release when the CBO issues one of its budget outlook 10 year projection reports, we can also count on being treated to public statements by Maya MacGuineas joining in the Peterson Army choir, warning about the coming debt crisis, and singing about the glories of deficit and debt reduction. And this while completely ignoring the real and sad consequences of deficit and debt reduction policies throughout the world since the crash of 2008, as well as previous applications to Latin American, Asian, and the nations of the disintegrated soviet empire, most notably Russia itself. Let’s look at Maya MacGuineas latest effort; her testimony to the Senate Budget Committee.

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Posted in Joe Firestone

Tagged austerity, balanced budget, Campaign to Fix the Debt, CBO, Committee for a Responsible Federal Budget (CRFB), Fiscal Policy, high platinum coin seigniorage, Maya MacGuineas, MMT, Modern Monetary Theory, Peter G. Peterson Foundation, REAL fiscal responsibility, Senate Budget Committee, washington consensus

The Peterson Foundation Sings the Same Old Song

Posted on March 12, 2015 by Joe Firestone | 7 comments

The Peter G. Peterson Foundation (PGPF) always does a press release when the CBO issues one of its budget outlook 10 year projection reports. The PGPF did another in January quoting its President and COO, Michael A. Peterson. Let’s go through that press release and see how many troublesome or false statements we can find. Here’s a breakdown of the press release quotation from Michael Peterson.

Today’s CBO report reminds us once again that our nation has significant fiscal challenges that have yet to be solved.

It certainly does, but I doubt that Peterson and I would agree on what those challenges are. He thinks they have to do with bringing the national debt under control. I think they have to do with creating full employment with a federal job guarantee program, price stability, a robust economy, a great public and free educational system through graduate school, stopping and reversing climate change, providing everybody in, nobody out, no co-pays and no deductibles health care for all, a first class infrastructure, and a greatly expanded social safety net including a doubling of SS benefits.

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Posted in Joe Firestone

Tagged austerity, budget projections, CBO, enhanced Medicare for All, Fiscal Gap, Fiscal Policy, High Value Platinum Coin Seigniorage, HR 676, HVPCS, Michael A. Peterson, MMT, Modern Monetary Theory, Peter G. Peterson Foundation, REAL fiscal responsibility, The Body Economic, washington consensus

Peterson Thinks We Need Austerity While He Lives It Up!

Posted on March 9, 2014 by Joe Firestone | 23 comments

By Joe Firestone

The Peterson Foundation reacted to the President’s budget document with a report repeating its usual whining about the debt problem, and the need to cut entitlements. Here are quotations from the report and my explanations of why they are ridiculous deficit/debt terrorist nonsense.

While today’s deficits are much lower than those during the financial crisis and recession, over the next ten years debt will remain at historically high levels under the policies outlined in the President’s budget. Over the long term, our debt is on a rising and unsustainable path that harms our economy and threatens our future standard of living.

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23 Comments

Posted in Joe Firestone

Tagged CBO projections, debt, deficit solvency, Fiscal Policy, Fiscal Responsibility, fiscal sustainablity, High Value Platinum Coin Seigniorage, HVPCS, interest rates, OMB projections, peterson, Peterson Foundation, President Obama's 2015 budget

Drop It: You Can Call for Helicopter Money but Drop the Call for “Coordination”

Posted on July 1, 2013 by Stephanie Kelton | 46 comments

By Scott Fullwiler

I suggested more than three years ago that helicopter drops are fiscal operations (printable version here), in contrast to the more traditional view that they were monetary policy operations (e.g., “Helicopter Ben”). My argument was based almost entirely on accounting and, therefore, on the actual balance sheet effects of a money drop. True helicopter drops of money raise the net financial assets (via income increases) of the non-government sector, which is exactly what fiscal policy does but not what monetary policy does.

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Posted in Stephanie Kelton

Tagged coordination, Fiscal Policy, helicopter, MMT, Modern Monetary Theory, Monetary policy, money

A Plague on All Your Budgets

Posted on March 26, 2013 by Devin Smith | 47 comments

By Joe Firestone

The Sector Financial Balances Model:

Domestic Private Balance + Domestic Government Balance + Foreign Balance = 0

is an accounting identity that provides a focus for macroeconomic analysis, explanation, and prediction by economists applying the Modern Money Theory (MMT) approach. It leads to a very critical line of thinking about the budget deficit projections produced for our consumption by the Congressional Progressive Caucus (CPC), Congressional Budget Office (CBO), the House, and the Senate. The US has recently had a sharp decline in its balance of trade deficit. It now stands at about 3% of GDP; which means that the rest of the world has a surplus, a balance of +3% of US GDP in its annual trade with the United States. Continue reading →

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Posted in Joe Firestone

Tagged #PCS, 2013 budgets, CBO, CPC, Fiscal Policy, High Value Platinum Coin Seigniorage, House budget, MMT, paul ryan, Senate budget, Trillion Dollar Coin

Is It Really About “Dysfunctional” Partisanship?

Posted on March 9, 2013 by Devin Smith | 24 comments

By Joe Firestone

The popular narrative in Washington, DC these days among the MSM pundits is that the Congress is “dysfunctional” in the sense that it is very difficult for it to pass a budget and rise above periodic “fiscal” “debt” and “deficit” crises. This difficulty is attributed to the failure of our representatives to rise above their party interests and to accept compromises proposed by “adults” such as the President, which would, it’s claimed, resolve our long term “fiscal sustainability”/”fiscal responsibility” problem through a “balanced” long-term $4 Trillion deficit reduction plan.

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Posted in Joe Firestone

Tagged #PCS, debt ceiling, filibuster, Fiscal Policy, High Value Platinum Coin Seigniorage, HVPCS, MMT, partisanship, Trillion Dollar Coin

Framing Platinum Coin Seigniorage: A Working Document

Posted on February 5, 2013 by Devin Smith | 9 comments

By Joe Firestone

Jack Foster proposed a framing document for High Value Platinum Coin Seigniorage, in a recent comment he made on one of my posts. In response, I posted a six-part blog series to accommodate readers who prefer the blog format.

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Posted in Joe Firestone

Tagged #PCS, #TDC, $60 T coin, austerity, debt ceiling, Fiscal Policy, game-changing PCS, High Value Platinum Coin Seigniorage, HVPCS, MMT, modern money theory, platinum coin seigniorage, Trillion Dollar Coin

Framing Platinum Coin Seigniorage: Part Six, More Political/Economic Objections

Posted on February 4, 2013 by Devin Smith | 11 comments

By Joe Firestone

This series provides a framing document for Platinum Coin Seigniorage (PCS). In the five previous parts of the series, I pointed out that there are three classes of opponents of High Value Platinum Coin Seigniorage (HVPCS, $30 T and above). The first and largest group opposes all Platinum Coin Seigniorage (PCS) of whatever type. The second, opposes HVPCS, but favors using the Trillion Dollar Coin (TDC) for the limited purpose of avoiding the debt ceiling. The third, opposes HVPCS, and doesn’t really favor using the TDC either, except, perhaps, as a last resort to avoid the debt ceiling. It favors an incremental approach to PCS beginning perhaps in the millions or billions in face value, and over a long period of time, after giving people years to adjust to Treasury using platinum coins with unusual, and unprecedented, face values, eventually building up to a TDC. Continue reading →

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Posted in Joe Firestone

Tagged #PCS, #TDC, $60 T coin, beowulf, debt ceiling, Fiscal Policy, High Value Platinum Coin Seigniorage, HVPCS, MMT, platinum coin seigniorage, Trillion Dollar Coin

Framing Platinum Coin Seigniorage: Part Five, Institutional Objections

Posted on February 3, 2013 by Devin Smith | 8 comments

By Joe Firestone

This series provides a framing document for Platinum Coin Seigniorage (PCS). In the four previous parts of the series, I pointed out that there are three classes of opponents of High Value Platinum Coin Seigniorage (HVPCS, $30 T and above). The first and largest group opposes all Platinum Coin Seigniorage (PCS) of whatever type. The second, opposes HVPCS, but favors using the Trillion Dollar Coin (TDC) for the limited purpose of avoiding the debt ceiling. The third, opposes HVPCS, and doesn’t really favor using the TDC either, except, perhaps, as a last resort to avoid the debt ceiling. It favors an incremental approach to PCS beginning perhaps in the millions or billions in face value, and over a long period of time, after giving people years to adjust to Treasury using platinum coins with unusual, and unprecedented, face values, eventually building up to a TDC.

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8 Comments

Posted in Joe Firestone

Tagged #PCS, #TDC, $60 T coin, beowulf, debt ceiling, Ezra Klein, Fiscal Policy, High Value Platinum Coin Seigniorage, HVPCS, John Lounsbury, MMT, platinum coin seigniorage, Trillion Dollar Coin, warren mosler

Framing Platinum Coin Seigniorage: Part Four, Political/Economic Objections

Posted on February 2, 2013 by Devin Smith | 13 comments

By Joe Firestone

This series provides a framing document for Platinum Coin Seigniorage (PCS). In the three previous parts of the series, I pointed out that there are three classes of opponents of High Value Platinum Coin Seigniorage (HVPCS, $30 T and above). The first and largest group opposes all Platinum Coin Seigniorage (PCS) of whatever type. The second, opposes HVPCS, but favors using the Trillion Dollar Coin (TDC) for the limited purpose of avoiding the debt ceiling. The third, opposes HVPCS, and doesn’t really favor using the TDC either, except, perhaps, as a last resort to avoid the debt ceiling. It favors an incremental approach to PCS beginning perhaps in the millions or billions in face value, and over a long period of time, after giving people years to adjust to Treasury using platinum coins with unusual, and unprecedented, face values, eventually building up to a TDC.

Continue reading →