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View Diary: Don't worry ... that bridge you're driving over won't collapse. Probably. (69 comments)

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  •  It means that there is no reality where we have (0+ / 0-)

    to cut defense spending in order to have the funding for infrastructure investment.  If you want to cut defense spending, then make the case that its wasteful, unnecessary, or that there is too much power and cronyism in the MIC.  But to say that we need to get the money from one place so that we will have enough of it to spend somewhere else is a lie.  And every time that lie is repeated, the right wingers win.

    "The Earth is my country and Science my religion" Christiaan Huygens. Please join our Kos group "Money and Public Purpose". The gold standard ended on August 15, 1971, its time we start acting like it.

    by Auburn Parks on Mon Sep 16, 2013 at 05:33:16 PM PDT

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    •  I could give a rat's ass about cutting defense (1+ / 0-)
      Recommended by:
      JeffW

      spending at the moment.  As Slick Willie Sutton replied when asked why he robbed banks, "Because that's where the money is".

      Infrastructure is a perfectly legitimate defense outlay, and we have spent considerable money on defense.

      The main thing, however, is that we spend a ton of money that could be better, especially if we want to grow jobs and the economy.

      LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

      by dinotrac on Mon Sep 16, 2013 at 05:42:10 PM PDT

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      •  I would never claim that every dollar the Govt (1+ / 0-)
        Recommended by:
        DarkLadyNyara

        spends is done so wisely, because that would obviously be erroneous.  Just as its erroneous to believe that because we spend $800 billion on "defense" we can't spend $800 billion on infrastructure.  However, if "national defense" was the tag line that the idiot masses needed to agree to spend money on infrastructure, then so be it.  But don't be fooled into thinking that there is some limited pool of funds out there that we need to take from.  Fiat currency is by definition limitless.  Otherwise, how could the money supply have grown to over $60 trillion since 1980?

        MMT = Reality

        "The Earth is my country and Science my religion" Christiaan Huygens. Please join our Kos group "Money and Public Purpose". The gold standard ended on August 15, 1971, its time we start acting like it.

        by Auburn Parks on Mon Sep 16, 2013 at 05:48:19 PM PDT

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        •  Don't know what measure gives you $60 trillion (0+ / 0-)

          It's been a long time since I was mired in labor and economic statistics, but I went looking for what I could find, and did a little bit of grade school arithmetic.

          I couldn't find that $60 trillion number to which you referred.
          I was able to find an unofficial M3 chart (looks like BLS doesn't do M3 any more) for the period in question.

          Did a few quick calcs and found that labor force growth and inflation as measured by CPI account for 2/3 of that growth.

          CPI probably isn't an adequate measure of inflation in that period because it allows for a shifting market basket, but it's the best I've got.

          That doesn't leave a whole lot for productivity increases, but I would hope that they could at least account for a healthy part of the remainder.

          LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

          by dinotrac on Tue Sep 17, 2013 at 03:55:27 AM PDT

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          •  Oh thats easy, the broadest measure of money (0+ / 0-)

            is bank deposits, and all bank deposits entered the world as debt.  Loans create deposits, thats how the private sector money supply grows and shrinks endogenously.  The measurement of that is called:
             total credit market instruments outstanding nonfinancial sector, and here's the corresponding FRED graph:

            http://research.stlouisfed.org/...

            Now there's some debate over whether or not to include all the money that has been deposited into securities accounts at the Fed, I think It would be silly not to.  If you transfer money to your checking account to your savings account, it doesn't go away.  Well thats all buying securities does, its like buying a CD at the Fed.  And we all know that there's roughly 16$ trillion on deposit at the Fed in T-bond accounts

            "The Earth is my country and Science my religion" Christiaan Huygens. Please join our Kos group "Money and Public Purpose". The gold standard ended on August 15, 1971, its time we start acting like it.

            by Auburn Parks on Tue Sep 17, 2013 at 05:25:50 AM PDT

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