Christopher:.." Time to end the Keynesian pretense about fiscal stimulus"

[dixiegrrrrl]

Whatcha think about this?


"Government intervention is the root cause of the financial crisis and the maladies identified by Roubini. Many of his proposals, such as debt restructuring and maintaining liquidity to solvent borrowers, are common sense initiatives that ought to be followed immediately.

But the proposals by Roubini and others that governments should borrow and print even more fiat currency to fuel further fiscal stimulus are badly considered. Economists from Paul Krugman in the US to Adam Posen in the UK all call for more stimuli. They are all wrong."

snip: "But for the inflationary policies of the Fed and the ECB to stimulate pseudo “growth” over the past several decades, there would have been no financial bubble and no mountain of housing-related debt. Why do economists like Roubini and Krugman say we need more of this medicine? Such pathetic proposals for more-debt-driven government intervention are what pass for mainstream economic thinking today in the G-20 nations."

http://blogs.reuters.com/christopher-whalen/2011/09/19/time-to-end-the-keynesian-pretense-about-fiscal-stimulus/#nourielroubini

[villager]

1. It's always "housing-related debt" and never "military-related debt" with rightwing "theorists"

...which meants their theories, therefore, have zero credibility.

[Warpy]

2. Hey, DIMWIT!

The stimulus was too small, but it still had an enormous effect and in the right direction. If half of it hadn't been wasted on tax cuts, it might have had even more of an effect and you'd look like an even bigger bought off fool.

Honestly, I wish guys like this would admit everything they stand for is not only wrong but almost brought the whole country down, sit down, and shut up and let the grownups like Krugman take over.

They had their chance, 30+ years of it, and the result of their dogma is wealth concentration, high unemployment, and misery in the lower 95% of earners.

By their fruits shall ye know them and the fruit from men like Christopher is rotten.

[abelenkpe]

3. I think he's a libertarian twat

government intervention did not cause the economic crisis. Decades of de regulation, the idea that businessmen should hold government postions or that government should be run like a business is what wrecked the economy.

We know how to get out of this crisis. We need a new new deal. We need to return to a society that values workers. We need to return to the tax rate under Eisenhower. That is how we answered the last crisis and it gave us decades of prosperity.

[ChairmanAgnostic]

5. he's worse than a twat. He's a dissembling, close-minded

syphilitic ridden twat.

Those theories were rejected by Kemp.

As early as 250 yrs ago, folks recognized that government investment, debt, and relationships with other nations were all positive. This class of morons seemed to think that a government was a business, and must be run like it. Actually, government is government and needs to be run like it, including a decent amount of debt. That allows a country to secure large amounts for investment, especially in projects that would see a benefit for decades to come. (post offices, hospitals, highways, bridges, rail, and much more) Left to the market, there would never be sufficient concentration of assets to make them work. Hamilton recognized that. So did Jefferson, Adams, the first (and underrated) Roosevelt, FDR, and even Nixon.

It matters where and how that debt-based asset is invested. If you put it simply into property (see Japan circa 1970-1980s) you get blow ups of the property market. If you assign it to ever more complex financial schemes, which serve only to earn profits for Banksters, you end up with a meltdown of our financial system. The key is to have a regulated, planned out, and flexible approach that cannot overdo the initial good that an investment can create.

For ex, if we simply applied 10 Trillion into roads, we'd create, then collapse yet another bubble. There are insufficient resources to use all those funds, which means talented people would leave better professions, and move to road construction. Assets for hospital buildings, schools, even space industry, would be redirected, inappropriately to roads. Debt is good, to a point, only when it is directed effectively and productively.

[dixiegrrrrl]

6. "The key is to have a regulated...approach"

did not the government ( Congress) "intervene" to destroy that needed regulation when they threw out
and/or ignored the regulations on banking?

[abelenkpe]

7. At the behest of business

all in the name of pursuing failed free market policies that have been all the rage since Reagan. Self regulation, please.

He is not advocating government regulation.

[xchrom]

4. Ignorant libertarian jerk wad. Nt

[Po_d Mainiac]

10. U have to really read the article

and have followed Whalen over the last several years. He is not a fan of kicking the can/turd down the road.

Second paragraph..key phrase <snip> "that governments should borrow and print even more fiat currency to fuel further fiscal stimulus are badly considered"
Third paragraph...key phrase.."More fiscal stimulus funded with debt will not generate real growth"...

He is on the record for:
Calling on regulators to establish a clearing house for all bank owned swaps which would effectively kill the shadow banking industry
Pointing out the mockery of the so-called stress tests and the need for M2M
Unwinding the TBTF's and cramming the losses onto the creditor/bondholders, and not the FDIC
Raising attention to the wave of put-backs waiting in the wings, and the illegal nature in which the securities were assembled

[bemildred]

8. Another neo-lib pissant. nt

[applegrove]

9. Those ***holes never stop with the mythmaking.