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View Diary: More Austerity Advice From the Very Rich: Buffett On Deficits! (15 comments)

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  •  One thing . . . (2+ / 0-)
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    psyched, Swoof

    I've seen this macroeconomic equation printed a number of times now, and it does remind me of what I was taught in the subject many years ago.  And the export/import variable seems to be fairly robust in this era of free trade and floating currency, so it would require some major legislation to change the factors driving it.  But about decreasing the Domestic Private Balance . . . most of that is not household savings by members of the 99%.  That's accumulation (aka hoarding) by the financial class and corporations (legal "persons").  It's money that is a "balance" precisely because it's not being spent into the general economy to provide monetary "flow" and "velocity".  Given that, mightn't it be reasonable to enact taxes that would lower that "private balance" while reducing the government's debt (negative balance)?

    •  I think I've seen some talk recently (0+ / 0-)

      of trying to split out that private savings balance but the diarist might have more information on that note.

      It's akin to the huge private debt starting at the sweet spot of the Clinton surplus and assigning all that to households while most of it was institutions swapping debt back and forth and creating what we got in 2007.

    •  No! (2+ / 0-)
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      psyched, bunnygirl60

      But it might make sense to tax the hell out of the 1% and spend more on the rest of us. The point is that the Government's debt is only a problem because it mostly pays "welfare" to the financial sector and foreign nations holding bonds. We ought to get rid of it using Coin Seigniorage, not tax revenues. See here.

      •  The limitation, then, would be political capital. (0+ / 0-)

        Everything always comes down to politics, so what about this? We leave the f%^&ing 1% alone to wallow in their billions and instead we focus limited political energy on $60T proof platinum coin seigniorage. If the real limitation is political, why even bother to keep fighting with the 1%. The negotiation would be like this: "Ok, we will lower the tax rates on ALL Americans but you sit down and shut-up about the PPCS because it's going to happen regardless of your input. What we are buying in this negotiation is your cooperation."  FOX could still melt down but they are the chicken little of media so I'm not sure that really matters.

        What WILL matter to all Americans are the programs and spending the government would be able to put in place to reach full employment along with capital asset upgrades and educational system investment which would change the future for all coming generations in a markedly positive direction.

        "When in doubt, do the brave thing." - Jan Smuts

        by bunnygirl60 on Fri Nov 30, 2012 at 01:02:16 PM PST

        [ Parent ]

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