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metamars's picture

Google Disables All Ads on Antiwar.com

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On 3/18/15 we received a note from Google Adsense informing us that all ads for our site had been disabled. Why? Because of this page showing the horrific abuses committed by U.S. troops in Iraq at Abu Ghraib.

letsgetitdone's picture

The Value of the Right Ratio Is Zero

The public debt-to-GDP ratio is, perhaps, the most important measure used in discussions of the relative fiscal sustainability of nations. Nations with high levels of debt-to-GDP are viewed as having more serious fiscal problems than nations with lower levels. Nations having increasing ratios over time are viewed as becoming less fiscally sustainable, while those with decreasing ratios are viewed as more fiscally sustainable.

But is the public debt-to-GDP ratio really a valid measure of fiscal sustainability, or is it a measure that incorporates a neoliberal theoretical bias in its fundamental assumptions? In the United States, the total value of public debt subject to the limit at any point, is the total principal value of all the outstanding debt instruments sold by the Treasury Department. The GDP is the aggregate value of the production of goods and services in the United States within a particular period of time, adjusted for price changes.

So, the public debt is a variable measuring a cumulated stock, while GDP is a flow variable measuring economic activity within a particular period of time. Why compute a ratio of a cumulated stock to a flow within a circumscribed period of time?

Well, in this case of the debt-to-GDP ratio, neoliberal economists reason that the stock, the debt, can only be reduced if the government takes away part of the flow each year to repay a portion of the stock, the debt, leaving less of the flow to add financial savings to the private sector. After all, what other sources of government revenue are there except taxation? Read more about The Value of the Right Ratio Is Zero

letsgetitdone's picture

Maya MacGuineas: The Profound Fiscal Irresponsibility of Resistance to Facts

Just as every Spring we can count on the Peter G. Peterson Foundation (PGPF) to do a supportive press release when the CBO issues one of its budget outlook 10 year projection reports, we can also count on being treated to public statements by Maya MacGuineas joining in the Peterson Army choir, warning about the coming debt crisis, and singing about the glories of deficit and debt reduction. And this while completely ignoring the real and sad consequences of deficit and debt reduction policies throughout the world since the crash of 2008, as well as previous applications to Latin American, Asian, and the nations of the disintegrated soviet empire, most notably Russia itself. Let's look at Maya MacGuineas latest effort; her testimony to the Senate Budget Committee. Read more about Maya MacGuineas: The Profound Fiscal Irresponsibility of Resistance to Facts

Rangoon78's picture

(Mis)remembering Reagan

If you were a young upwardly mobile professional during the Reagan years the money was good. The corporate life, though, became more of the Rat Race it is today: mergers and acquisitions and leveraged buyouts and downsizing made the survivors scramble to keep up. Home life was a luxury.

But for the lower economic ranks, Reagan ushered in dark days: Read more about (Mis)remembering Reagan

Rangoon78's picture

The Left

The difference between today's Left and the one FDR had to contend with was that they were a credible threat to jump ship. Now, all we hear is Must Vote Demicrat because 'The Koch bros.' and so the country keeps moving Right. Here's a snippet from a great article that deserves a complete read: Read more about The Left

letsgetitdone's picture

The Peterson Foundation Sings the Same Old Song

The Peter G. Peterson Foundation (PGPF) always does a press release when the CBO issues one of its budget outlook 10 year projection reports. The PGPF did another in January quoting its President and COO, Michael A. Peterson. Let's go through that press release and see how many troublesome or false statements we can find. Here's a breakdown of the press release quotation from Michael Peterson.

Today's CBO report reminds us once again that our nation has significant fiscal challenges that have yet to be solved.

It certainly does, but I doubt that Peterson and I would agree on what those challenges are. He thinks they have to do with bringing the national debt under control. I think they have to do with creating full employment with a federal job guarantee program, price stability, a robust economy, a great public and free educational system through graduate school, stopping and reversing climate change, providing everybody in, nobody out, no co-pays and no deductibles health care for all, a first class infrastructure, and a greatly expanded social safety net including a doubling of SS benefits.

He thinks the debt is a long-term problem that we have to start to solve now. I think there is, literally, no public finance-related debt problem for a fiat sovereign like the U.S., and that the problem that exists is not a debt problem, but a political problem created by Peterson and his allies across the political spectrum who have propagandized the view that there is a debt crisis since the mid-1970s, with increasing success since the 1990s. Read more about The Peterson Foundation Sings the Same Old Song

letsgetitdone's picture

The “Debt Crisis” According to Bruce Bartlett: Generational Accounting

This is the last post in my analysis and commentary on Bruce Bartlett's testimony to the Senate Budget Committee. There's one very significant issue left to discuss, and that is the issue of fiscal gap and generational accounting and whether it should be institutionalized in legislation. I'll begin this post with that discussion and then end the series with my overall evaluation of his effort.

Fiscal Gap and Generational Accounting

15. Generational accounting exaggerates the burden of debt. Intergenerational accounting attempts to assess financial burdens through time, especially with a view to claiming that financial decisions taken in one generation can impose burdens on another. But this argument refuses to count as real assets the infrastructure and other national assets that the current generation will leave for future generations, and it does not understand that federal government debt never needs to be retired. In real terms, there obviously are no intergenerational transfers, except for the knowledge, the physical assets and the larger environment, which the present leaves to the future. The real goods produced in 2050 will be distributed to those alive in 2050, regardless of the public debt in existence at that time. Meanwhile, the U.S. government can always meet its payments when they come due. . . .

. Read more about The “Debt Crisis” According to Bruce Bartlett: Generational Accounting

DCblogger's picture

Why does James Comey have a job?

Thread: 

Clearly the current Director of the FBI does not take violence against women seriously.

Rep. Katherine Clark: The FBI Needs to Make Gamergate 'A Priority'

Clark is the congresswoman for Brianna Wu, the Boston-based game developer who's been relentlessly trolled for months by Gamergaters. Clark's office, she says, has been "watching Gamergate unfold" for several months.

letsgetitdone's picture

The “Debt Crisis” According to Bruce Bartlett: Debt Thresholds, and Wars

This is the fourth in a series of commentaries on Bruce Bartlett's recent testimony to the Senate Budget Committee. I appreciated his testimony and his critical evaluation of the idea that there is a public “debt crisis” in the United States. I also agree that there is no debt crisis. However, I was disappointed that his views, for the most part, did not show the across the board relevance to most aspects of the “debt crisis” of the fact that the United States is a fiat currency sovereign.

In the previous three posts, I've outlined the many contexts in which the fiat currency sovereignty of the United States is relevant to showing that the idea that the United States has or can have a debt crisis is just bunk. In this post, I'll continue my discussion of Bruce Bartlett's testimony in the same way. Read more about The “Debt Crisis” According to Bruce Bartlett: Debt Thresholds, and Wars

letsgetitdone's picture

The “Debt Crisis” According to Bruce Bartlett: Household Analogy, Inflation, Savings, and Taxes

In the first two parts of this series of commentaries on Bruce Bartlett's testimony to the Senate Budget Committee, I've reviewed the first 8 paragraphs in his statement. These points debunked various concerns of those who think the United States has a serious “debt crisis” it must handle before it takes on trivial problems such as its unprecedentedly high level of wealth inequality, lack of true full employment at a living wage, roughly 30 million people still lacking health insurance, one of the worst infrastructure systems in the developed world, transitioning from fossil fuels and ending climate change, creating a first class public educational system from pre-K through graduate school, ending the student loan crisis, creating a single standard of law for all, including the various categories of violators categorized as too big to prosecute by recent Administrations, and ending the student loan debt crisis, just to name a few.

However, what was noticeably missing from the variety of arguments given in his eight paragraphs was a recognition that the United States is a fiat sovereign nation and that this fact has serious implications for most of the subject matter Bruce Bartlett covers in his statement. In this post I'll continue my analysis of his statement to explore the extent to which his views correspond to Modern Money Theory (MMT). Read more about The “Debt Crisis” According to Bruce Bartlett: Household Analogy, Inflation, Savings, and Taxes

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