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View Diary: "In Defense of Deficits" by the great James Galbraith (19 comments)

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  •  you know its funny, I've seen that argument (12+ / 0-)

    made 100 times in 100 different ways and I think that Prof Galbraith's description of the necessary opposition to federal deficits by the financial elite might just be the most succinct and well written display of this particular concept I've seen to date.

    Hey Priceman, your articles are much more widely read, rec'd and commented on then the few dozen people that see I think its more appropriate to thank you for your hard work spreading the good word.

    MMT for the win

    "The Earth is my country and Science my religion" Christiaan Huygens

    by Auburn Parks on Mon May 27, 2013 at 05:25:52 PM PDT

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    •  He definitely has a way of cutting through... (11+ / 0-)

      the fog like no one else.

      Your pieces are good, still, as well.

      IMO I have always tried to bring the anger and populism to MMT which is needed and missing(Mike Norman does well with that like Galbraith does); otherwise we are all just hanging with each other in our own academic corner.

      I don't like how this place is being run though, so I won't be writing as much. People who don't use sources or facts are given the same deference, even more deference, as myself and are allowed to troll my diaries with impunity.

      I also have personal issues to work on, so you won't be seeing as much work from me(though every once in awhile I may write one) but I am proud of getting some MMT pieces on the rec list but it took years.

      However, thank you, Auburn Parks. I appreciate that.

      I don't negotiate grand bargains with deficit terrorists!

      by priceman on Mon May 27, 2013 at 05:38:13 PM PDT

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      •  priceman, (4+ / 0-)
        Recommended by:
        priceman, ek hornbeck, katiec, JesseCW

        Please keep writing. For reasons why, please see my diary

        Thank you.

        For the first time in human history, we possess both the means for destroying all life on Earth or realizing a paradise on the planet--Michio Kaku.

        by psyched on Mon May 27, 2013 at 11:19:01 PM PDT

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        •  That is a very good argument to keep going... (5+ / 0-)
          Recommended by:
          ek hornbeck, PhilJD, katiec, JesseCW, psyched

          and I certainly appreciate all your support, psyched, but there are unfortunately more reasons not to, personally, for me, right now. It's not that I don't think any of what I write matters, it's that my personal situation it getting worse, and I can't waste the time doing it. Of course, that also ties in to how I am not happy with how this site is being run or how it's being moderated; I think the recent actions of some moderators have made this place into a dump where learning about the subjects I write about is that much harder given the trolling and favoritism towards trolls by up top allowed in my posts.

          The only time they get involved is when you react and call this behavior out for what it is and whom the perpetrators are; trolling and trolls. That is what I see as defeating the purpose, for me. There are many others who know more and write better on these subjects than myself in the Money and Public Purpose group to make up for my absence. I'm not saying I am going to quit altogether, but after writing a weekly column for a few years, and the absolute childish trollish fact denying behavior enabled and even supported by the management here, it's going to be very sporadic.

          That is an inspirational diary, though. It did almost make me rethink this, but the game is rigged here IMO. Soon we will be told to fall in line for whomever has a (D) on their lapel regardless of whether they support cutting Social Security which would make this an un-Democratic site. I guess there are more people who disrupt diaries for the love of politicians as opposed to data, sources, and analysis. Perhaps some of the moderators are in self preservation mode as they see that keeping the non intellectual contingent is what is going to preserve this site, but they are wrong. The youtube comment section already exists. people don't want to relive it anywhere but youtube and I don't participate in the youtube comment section either.

          But that is just my opinion. I truly respect and admire yours, Letsgetitdone's, Calgacus's, katie c's, jellyyork's, and everyone here MMT. Thank you to all of you for your support.


          I don't negotiate grand bargains with deficit terrorists!

          by priceman on Mon May 27, 2013 at 11:56:35 PM PDT

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      •  keep writing (1+ / 0-)
        Recommended by:
    •  Actually, the banks also want public debt. But (2+ / 0-)
      Recommended by:
      Auburn Parks, priceman

      they want it to benefit themselves, not you.

      They had a fit when Australia cut back on producing public debt.

      •  Hey KatieC.....thats a good point with some nuance (3+ / 0-)
        Recommended by:
        katiec, priceman, psyched

        that really should be talked about and addressed.

        I would like to refer you to these two articles that are related to your point in different ways.

        This one is from Joe Weisenthal at Business Insider about how the low supply of new public debt (financial assets) in a way forced the creation and expansion of the mortgage backed securities industry during the surpluses of the late 90's.

        And this one is from Mark Dow over at Behavioral Macro that talks about how the conventional wisdom notion that banks must increase their bank reserves commensurate with their growing levels of liabilities is false.  That in fact, the reserve or capital requirements for the banks are actually met by banks holding Treasury securities as collateral.  More evidence of what you say about the need for banks to have public debt for their own uses, even if they rail about deficit that benefit the 99%.  

        Unless I'm missing something, I think this can be simply demonstrated by looking at how (before the start of QE) the Fed's monetary base (bank reserves) grew by $600 billion between 1985 and 2008 while total private sector debt grew from less than $1 trillion to $40 trillion plus during the same time period....According to this data, private credit growth is not correlated with reserve growth.

        and private sector debt levels......

        As I think more about it...why would it be?  If Treasury securities are seen as just as good and legal a bit of collateral for increased leverage as bank reserves....and securities pay a higher interest rate.....of course the banks will prefer the higher interest rate paying collateral all else being equal.

        "The Earth is my country and Science my religion" Christiaan Huygens

        by Auburn Parks on Tue May 28, 2013 at 05:51:10 AM PDT

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