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View Diary: Austerity isn't dead... but it should be (132 comments)

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  •  I'm guessing you don't know jack (3+ / 0-)
    Recommended by:
    Auburn Parks, tardis10, emal

    about sovereign currency and MMT, do you?

    Yes, deficits do matter; there, I've said it.

    But nowhere near to the extent that you and your fellow (redacted) Sparrowhawk imagine it is......

    The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

    by ozsea1 on Sun Apr 28, 2013 at 10:21:18 AM PDT

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    •  Sovereign currency and Modern Monetary Theory.... (0+ / 0-)

      ...are fraud and hucksterism dressed up as legit economic theories.

      All that matters is: what physical good or service do you produce? Is the rest if the world willing to pay the price you charge?

      Money is just a way of keeping score. The real value is the goods and services being transacted. You have to provide real value of goods and services in exchange for whatever you import. A budget deficit means you aren't doing that. To fix the problem you either have to produce more real stuff or cut your imports.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Sun Apr 28, 2013 at 11:32:45 AM PDT

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      •  were it as simple as you assert it is.... (0+ / 0-)

        but's it's not, and your economic thinking just can't handle the historical reality.

        Ask yourself this, if you want to learn, instead of offering your brand of "fraud and hucksterism dressed up as legit economic theories."

        How are public debt and private assets connected? Hint: double entry accounting.

        Why is the trade deficit important to public debt of which you are so obsessed? Same hint.

        Decoupling our sovereign currency from the gold standard changed the game so that the rightwing/libertarian meme of comparing the federal budget to a household budget is invalidated. Explain. Show your work.

        Finally, our buddy and pal (The) Dick Cheney simply stated - for simple minds - that deficits don't matter.

        Likely he knew things that you clearly do not.

        The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

        by ozsea1 on Sun Apr 28, 2013 at 12:23:45 PM PDT

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