Politics & Propaganda

They're just trying to put a nice spin on things... but the fact remains that the vast majority of tote bags are typically discarded by conference attendees. (I know what I'm talking about here -- I worked for a company that organized two conferences every year.)

That's waste. And when you notice waste, you decide to save yourself some money. Being nice to the planet happens to be a happy side effect. Is the effect not the same?

As for economics, if you look at Smith, Keynes, Hayek, Marx and Friedman I think you'd agree that as far as predictions, Hayek probably has the best track record.

Disagree.

I think you made my point. It's spin.

I think you made my point. It's spin.

Not really... your point is unmakeable. Who the fuck cares if they're greendroids who want to save the planet AND save themselves a buck, or Randroids who want to save themselves a buck AND save the planet?

On that note, Mankiw is one of Romney's economics advisors, and Romney

seems to be busy ignoring the advice of his economists.

Romney who? All I said was that Obama's economic policies have failed. I don't know the economic policies of this "Romney" of whom you speak, but it's a fair assessment that if the current occupant of the White House has spent the last three years adding trillions of dollars of debt to an already bankrupt nation, that should be the first and foremost thing being discussed.

The sentence that you quote is a tangent. I brought up Mankiw, then I explained who he was for the benefit of those who might not know...


"Bankrupt" is a bit of hyperbole.

Perhaps, but can you name anyone in big politics right now who has suggested the only viable economic option -- that is, big, deep, painful cuts to spending?
(I can only think of one, and I know you're not a fan.)

I have an inkling of who you speak... and yes, I'm not a fan.

One way or another, the budget will converge to sanity over the long run--it has to. Americans will eventually do the right thing--after, perhaps, exhausting all other possibilities.

Heh... that's faith.

Observable phenomenons suggest a different story.

Our government is losing its mind. And the people driving it aren't listening to the voters anymore... they listen to their own party, or special interest groups. And, unfortunately, it works for them, without working for us.

All political parties will continue to expand spending, because they're addicted to it. The public debt is like crack-cocaine to a federal politician. Spend it, and you look great, while continuing to burden some nebulous future generation.
Since we have no immediately negative effecgts, and the US citizens won't put a stop to it, it will continue, until something gives.

I had hoped I wouldn't be around for it, but I guess I will.

Well, I try to be careful not to become a member of the Tinfoil Hat Club...


We have been down this road before. It's how we dealt with the post-WWII debt. History is clear that a slow-liquidation strategy can and does deal with debt.


In fact, it's the preferred strategy. You don't want to blow a hole in everybody's balance sheet all at once. Greece tried that one. Didn't work so well for them.

So, do you see us using a slow-liquidation strategy h ere?

I think everybody realizes that, at some point, if you keep letting your debt grow to the sky, you lose credibility, and you have to either start slow-liquidating or just default.

The slow-liquidating strategy is far easier to implement when your country retains full sovereignty. Countries like Greece, however, have ceded some of their sovereignty to Brussels. If, like Greece, you just do an uncontrolled default, nobody wants to do that except those who have exhausted all other options.


Besides full sovereignty, there are two other necessary conditions for the strategy to work: most of your government debt is denominated in your own currency, and most of your private sector debt is denominated in your own currency. We are in a good position in that regard.

Unlike Hungary; although they have their own currency, much of their private sector debt is denominated in Euros, which they do not control.

Carmen Reinhart & Ken Rogoff have published some interesting research on the mechanisms underlying the post-WWII debt liquidation...

Yes, but... do you see us using a slow-liquidation strategy here? So far, all I see is that we continue to spend outrageously.

The automatic cuts fall short of what's needed over the long term, but they are significant. The military and contractors will not be happy about them. Which hurts my hometown and home state -- the largest employer there, surprisingly employing people in all 16 counties, is a defense contractor; there is an argument that my hometown would be a ghost town without the US Navy. An overstated argument, mind you, but an argument nonetheless. ;) When a large enough entity hires enough people, you get a whole small-city's worth of secondary jobs that are also created as knock-on effects. Factory workers need people to clean their teeth, and people to buy shoes from...

But hell, I suppose we can always sells warships to the Canadian, Somalian, or Republic of Texas Navy after we lose the US as a customer...

(Now, THERE'S free trade!)

Always happy to rant.

Speaking of, Rush Limbaugh rejected a return of one of his advertisers who is trying to get back with him after the Sandra Fluke thing.... So long Sleep Train Matress Centers!

Sideshow Bob 2012!