Economist Richard Koo Slams Republicans For Manufacturing A Crisis

[girl gone mad]

Koo's "balance sheet recession" model, in addition to correctly predicting the failure of quantitative easing (among other things), provides an accurate and detailed description of the cause of our financial crisis.

Richard Koo Slams Republicans For Manufacturing A Crisis, And Pursuing The "Worst Possible Economic Policy"
http://www.businessinsider.com/richard-koo-slams-republicans-for-manufacturing-a-crisis-and-pursuing-the-worst-possible-economic-policy-2011-7#ixzz1TH1ZVcDR

US debt ceiling problems are manufactured crisis

Congress can raise the debt ceiling any time it wants and has done so many times in the past.

This time, however, the Republicans have used the debt ceiling as a bargaining chip in an attempt to force the Obama administration to cut the deficit by scaling back government spending. A similar attempt was made in 1995.

In that sense, the political turmoil engulfing Washington in recent weeks is a manufactured crisis—there is really no problem in financing the budget deficit, but the Republicans control the House of Representatives and are effectively holding the debt ceiling hostage.

(snip)


Even more depressing is the fact that the spending cuts and other deficit-reduction efforts sought by the Republicans are the worst possible economic option for the US today. This is because government borrowing and spending is the only way to prop up the economy when the private sector is deleveraging at a time of zero interest rates.


Read more: http://www.businessinsider.com/richard-koo-slams-republicans-for-manufacturing-a-crisis-and-pursuing-the-worst-possible-economic-policy-2011-7#ixzz1TH1ZVcDR

[Vanje]

1. Well sure

REpublicans do that shit.
Who is surprised?

My great disappointment is that the Dems follow their lead.



And...Crisis? We don't need a fake crises. We have a real crisis. Right now.
Jobs.

JOBS!

WE NEED JOBS!

Why in fuck,arent congress and our president talking about jobs.
Why?

WHY?!

[saras]

3. Where are they going to get jobs from?

Corporations used to provide jobs. They've largely outgrown that, and are no more likely to return than we are to return to horses. I don't think the politicians have the foggiest idea how to create jobs without large corporations, or stimulate communities to do so themselves, any more than they know how to get legal control over the corporations and force them back into some sort of tolerable behavior.

[Vanje]

5. Jobs

FDR created jobs through the WPA , the CCC. Government spending ended the "great depression."
Not private industry.
Dont wait for private industry to become more profitable. They already are more profitable than they've been in decades.....yet. No jobs.
Trickle-down is a fairy tail.

The feds ca pay people to be unemployed (unemployment insurance), or the federal government can PAY PEOPLE TO WORK!



We need an FDR.

We're stuck with a fuckn Hoover.

Nobody, NOBODY, wants to be paid to be idle.

[Cali_Democrat]

2. ...

[FourScore]

4. I like how this guy thinks. n/t