More Debates With Deficit Hawks

Tulio responds to my post with some typical rightwing populist and deficit hawk stuff that doesn’t add up to much. His comments are italicized below:
More and more of our debt being owned by foreign nations that are hostile to our interests does not make me sleep well at night.
They are not hostile to our interests. They are interested in the US having a strong economy.
Plus if you think it’s great that the fed just turns on the printing presses whenever he wants, what do you think that’s going to do to our ability to borrow more?
Easy answer. The money’s not inflated. There is no inflation, so there’s no worry about printing money.
Why do you think the Fed’s latest “quantitative easing” pissed so many countries off?
Do you understand what the purpose of that was? It was “beggar thy neighbor” type currency war. He is lowering the value of the dollar on purpose to make the $ cheaper in order to boost US exports and get the economy going again. At the same time, he is making other countries currencies and imports cost more $, thereby hampering them.
In capitalism, nations compete for markets and whatnot. You support capitalism, so I assume you support currency wars and other games that capitalist nations play against each other to try to game each other, right?

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0 thoughts on “More Debates With Deficit Hawks”

  1. So.. what’s up with the Fed… need a Trillion dollars…? Sorry Rob you’re not to big to fail. Better take some steroids.
    This article was by socialist Bernie Saunders…
    http://www.huffingtonpost.com/rep-bernie-sanders/a-real-jaw-dropper-at-the_b_791091.html
    “Deutsche Bank, a German lender, sold the Fed more than $290 billion worth of mortgage securities. Credit Suisse, a Swiss bank, sold the Fed more than $287 billion in mortgage bonds.”
    Read.. we bought those crap mortgages that you didn’t bother investigating to see if they had value.. have a nice day.
    “What this disclosure tells us, among many other things, is that despite this huge taxpayer bailout, the Fed did not make the appropriate demands on these institutions necessary to rebuild our economy and protect the needs of ordinary Americans.”
    You think…?
    “Federal Reserve doled out to every major financial institution in this country. Among those are Goldman Sachs, which received nearly $600 billion; Morgan Stanley, which received nearly $2 trillion; Citigroup, which received $1.8 trillion; Bear Stearns, which received nearly $1 trillion, and Merrill Lynch, which received some $1.5 trillion in short term loans from the Fed.
    Yes I totally trust the boys at the Fed. I mean totally.

    1. The problem with the Fed is that they are supporters of the laissez faire neoclassical economics that you are always championing. So your attacking them for subscribing to your ideology does not make a lot of sense.

  2. To Rob:
    The problem with the Fed is that they are supporters of the laissez faire neoclassical economics that you are always championing. So your attacking them for subscribing to your ideology does not make a lot of sense.
    The Fed, most assuredly, subscribes to Friedman’s monetarist theories.. but these are separate from the concept of Laissez Faire for the most part. As you may know Laissez Faire means different things to different economists such as Adam Smith, Rothbard, Friedman, etc. Clearly the Fed loaning Trillions (I mean my G-d Trillions ) of dollars to private companies is the direct opposite of Laissez Faire economics. The original concept of Laissez Faire came about a as critique of various enterprises that were basically granted monopoly status by their governments. (In Britain and France.. basically friends of king…..) The ideas of Laissez Faire and Comparative Advantage have morphed into nonsense that legitimizes moving a factory from Ohio where workers are paid $12 and workers have safety laws and environmental laws are enforced to the China where workers are paid $1 and environmental and safety laws… are not enforced (if they even exist…) That’s just incredibly short sighted and an abuse and distortion of the original concepts.

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