austrian63

Turning Japanese: The Audacity of Reality (Part 3 of 3)

Who is being alarmist? Mr. Quinn by explaining the 20 plus years of profigate spending that got us here or the President by stating that we must pass his spending package now before things get worse so we without questining it.


On Jan 30 09:28 AM BS Detector wrote:

> "This process is unacceptable to the socialist politicians who are
> in domination of the United States today."
>
> Adding the author to the list of people who use the word "socialist"
> without understanding what it means...
>
> "How about well thought out, deliberative, and effective?"
>
> Let me just point out that the Great Depression lasted for a decade
> while politicians took deliberate actions to cure it. It was only
> when WWII happened along, and government spending went parabolic,
> that the Depression was ended.
>
> "Every single dime of the $1 trillion will be borrowed. The government
> will borrow $1 trillion from foreign countries..."
>
> Rhetoric. There are lots and lots of domestic buyers of Treasuries.
>
>
> "Barney Frank and Charlie Rangel will force insolvent banks to lend
> money to companies, consumers, and deadbeats in foreclosure proceedings..."
>
>
> Alarmist nonsense.

The Cost of a Bailout: How Many Zeroes Did You Say?

Great article. The first article I have read on Seeking Alpha that actually points out that boom - bust business cycles do not occur in true free economies but are a natural part of Keynesian, interventionist economies. The Keynesian focus on aggregates over simplifies the trillions of individual decisions that millions, if not billions, of individuals and businesses make on a daily basis. These decisions end up misallocating scarce resources due to artificially low interest rates. This impacts savings and investment.

The data you cite from James Bianco is very telling in that all amounts noted are "inflation" adjusted. Significant and often hyper inflation are inherent parts of Keynesian economics becasue inflation precludes all limits on government spending.

Keep up the good work.