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View Diary: Krugman On The Proposed Deal (341 comments)

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  •  Both parties are pushing the "Big Lie" (22+ / 0-)

    And from what I read in the various DK diaries the gambit is being played very successfully. It's the good cop bad cop play that has progressives snookered and ready to capitulate to the narrative about the awful debt and deficit. What they call the "national debt" is the national wealth - it is the net financial savings of the private sector. And the government's deficit is the private sector's surplus. Cut the deficit, you cut the surplus and consumers either cut back or go deeper into debt. This stuff isn't rocket science - it's algebra. And, of course, being the issuer of the currency the federal government can deficit spend without incurring interest bearing debt. Congress chooses not to. Congress has decreed that dollar for dollar all deficits must be converted to debt instruments so we can pay out $360B in debt service to Wall Street, Banks and the financial elites. Funny how we can afford that without a second thought!

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