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View Diary: Elizabeth Warren's Student Loan Proposal: Yet Another Progressive Political Loser (84 comments)

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  •  Where is the inflation: (1+ / 0-)
    Recommended by:
    katiec

    https://research.stlouisfed.org/...=

    And Pension assets along with T-securities:

    https://research.stlouisfed.org/...

    So what were you saying again?

    "The Earth is my country and Science my religion" Christiaan Huygens. The gold standard ended on August 15, 1971, its time we start acting like it. If we can afford full employment killing Germans, we can afford full employment during peace-time.

    by Auburn Parks on Tue Jun 10, 2014 at 03:23:19 PM PDT

    [ Parent ]

    •  do you havea problem w/ revenue? (1+ / 0-)
      Recommended by:
      Piren

      measures?

      •  Not sure what this comment means. (0+ / 0-)

        "The Earth is my country and Science my religion" Christiaan Huygens. The gold standard ended on August 15, 1971, its time we start acting like it. If we can afford full employment killing Germans, we can afford full employment during peace-time.

        by Auburn Parks on Tue Jun 10, 2014 at 06:26:21 PM PDT

        [ Parent ]

        •  you seem to prefer printing dollars (1+ / 0-)
          Recommended by:
          Piren

          to collecting and distributing dollars.

          you can grow the money supply to match population and GDP growth, but, you are better off looking towards
          revenue measures and fiscal measures to run routine
          ops.

          •  Deficit spending is a necessary condition for (1+ / 0-)
            Recommended by:
            patbahn

            sustainable economic growth, especially with a trade deficit. Its just math:

            http://soberlook.com/...

            When the deficit gets too small, recessions result:

            http://mythfighter.com/...

            Mostly because absent a strong contribution to the economy via the Govt deficit, combined with a trade deficit and decreasing income shares for labor, the only periods of real inflation adjusted income growth have come when unemployment approaches and gets below 5%. Unfortunately, this has taken giant private debt booms and has happened less than half the time sine 1983.

            Private debt:

             http://static.seekingalpha.com/...

            And real wage growth with unemployment:

            https://research.stlouisfed.org/...=

            Basically it boils down to this:

            If the unemployment rate is too high => the deficit is too small

            If inflation is too high => the deficit may be too big

            "The Earth is my country and Science my religion" Christiaan Huygens. The gold standard ended on August 15, 1971, its time we start acting like it. If we can afford full employment killing Germans, we can afford full employment during peace-time.

            by Auburn Parks on Tue Jun 10, 2014 at 07:04:32 PM PDT

            [ Parent ]

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