tag:blogger.com,1999:blog-3417352582429078455.post5342382676635597909..comments2023-07-27T08:56:13.496-07:00Comments on SHAKE WELL BEFORE USING: The Debt Ceiling Deal and ProgressivesDaniel A. Segalhttp://www.blogger.com/profile/01804407462659738136noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3417352582429078455.post-26886253865362286832011-08-08T17:50:06.765-07:002011-08-08T17:50:06.765-07:00If you don't want growth as an objective, that...If you don't want growth as an objective, that's certainly one thing. But why keep pushing Keynesian stimulus anyway?<br /><br />Re--the Fed:<br /><br />It's that attitude that is so problematic in the first place! I sure do blame Richard Shelby for his stance against Diamond, a stance that can be only charitably called "unprincipled."<br /><br />But Obama can't control the Republicans. He can only control himself. Obama could have found a way to recess appointment people to the Fed back when Democrats controlled both Houses. Or he could have tried to publicize the issue. He didn't even nominate ANYONE for the second Fed position. And both sat empty for months!<br /><br />But he didn't. He didn't because progressives, for whatever reason, don't engage on monetary policy. It's the best, most effective way to combat the recession.<br /><br />The issue is especially important now. Treasury yields shooting down, inflation expectations decreasing, risk aversion increasing again. The tell-tale signs of a coming drop in Nominal GDP. A foreboding sign of another recession. The only tools available are in the Fed's toolkit.<br /><br />This should be required reading for any economic analysis: http://www.themoneyillusion.com/.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3417352582429078455.post-76102101545451465142011-08-08T14:41:50.116-07:002011-08-08T14:41:50.116-07:00Hi Will,
Well, some things do not change. You al...Hi Will,<br /><br />Well, some things do not change. You always did ask great questions.<br /><br />To your point 1: just today Rep. Frank argued for 200-300 billion in military cuts as the first step in future deficit reduction. He's on the right track. U.S. military expenses are something over 5% of GDP I believe; Canada is at something over 1%. To wage peace, we need to reduce the military budget big time--and there is real money there for deficit reduction. Note, for instance, that the automatic cuts in phase two of deficit reduction, that would occur if the bipartisan committee does not reach an agreement, also involve significant dollar savings in military cuts. On this, see http://thinkprogress.org/security/2011/08/08/291030/obama-panetta-medicare-cuts/<br /><br />On your point 2: that's what my future post about uncritical embracing of "economic growth" by progressives will be about. So don't change the channel -- as they used to say (back in the day when people watched broadcast television).<br /><br />On point 3: sure, criticize Obama for not filling 2 of 7 positions on the fed. And criticize Republicans for blocking so many other presidential appointments.<br /><br />Cheers, DanDan Segalhttp://daniel-segal.blogspot.com/2011/08/debt-ceiling-deal-and-progressives.html#commentsnoreply@blogger.comtag:blogger.com,1999:blog-3417352582429078455.post-80405899862446645982011-08-07T14:02:34.199-07:002011-08-07T14:02:34.199-07:00Three points:
How much money will we save from cu...Three points:<br /><br />How much money will we save from cutting defense? Quantifying it should help clarify the issue.<br /><br />I believe the reason Democrats haven't gone after Defense as aggressively as you wish is because there isn't as much money as you assume.<br /><br />Two:<br /><br />How is "movement away from providing a Keynesian stimulus" a problem if "economic growth" isn't progressives's goal?<br /><br />Three:<br /><br />Why will Keynesian stimulus benefit the economy when the central bank is targeting inflation? <br /><br />Why not criticize Obama for leaving 2 of the 7 Fed positions open?<br /><br />http://thinkprogress.org/yglesias/2011/08/03/286354/maybe-someone-should-appoint-some-federal-reserve-board-members/Anonymousnoreply@blogger.com