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View Diary: Debunking Ryan's zombie lie: Obamacare doesn't add to the deficit, it actually reduces it (50 comments)

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  •  What is good about reducing deficits again? (1+ / 0-)
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    betelgeux

    The deficit is the difference between the amount of new money that the Govt ADDS to the economy through spending and the amount of existing money it SUBTRACTS from the economy through taxation.  Does anybody really think that the economy doesn't need more money in it right now given our current income and wealth distribution?

    As far as the so-called "debt" goes, its nothing more than the total amount of T-bonds the public owns.  The last time I checked, my T-bonds were my financial assets, why would anybody claim their are too many financial assets?  Do we have an inflation problem?  If the next thing you are going to say is, "but what about all that interest?"   First of all, the Fed sets the interest rate, no the markets.  So the interest rate is a policy decision that the Fed chooses, not some random market price.  Secondly, is that interest income so obviously a bad thing?  I'm not so sure, here's a breakdown of who owns T-bonds:

    http://www.ritholtz.com/...

    I would put on the positive side of the ledger for worthwhile recipients of interest income, the Pension funds, households, Foreign sector (it helps to ensure our trade deficit which is a real benefit for us), State and local Govts, The Fed is irrelevant since the Treasury gets all that money back.

    Banks, primary dealers, insurance companies, money market funds, etc, not as worthy.

    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 Sat Oct 12, 2013 at 09:01:57 PM PDT

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