drieuxster (drieuxster) wrote,

On deficit spending and credit card reform...

It is interesting watching these two similarly dislocated discussions.

For some reason folks who want to cut taxes, do not want to cut the goods and services that the government provides. Such as The DOD, SEC, Justice Deparment, etc. So they wind up supporting Deficit Spending in times when it is not about Government as the "Source of Demand of Last Resort".

We also are watching the problem that various credit card companies may now have to make ends meet, gosh, with real value - and not based upon inflated expectations that some how that 'debt' they have created will be repaid by the persons who rang it up. Remember boys and NonPerkin - one of the fun of 'creditizing' various types of 'debt' - is the underlying mythology that this debt will get paid.

So whether we are talking about things like mortguages, or unsecured debt like credit cards, the important thing is to create the debt, then productize it, and ship it off in the Big Bag Of Pooh....

Then when the music stops, who ever has the Big Bag Of Pooh should scream the loudest about the needs to stop the evils of MarxianistNationalSocialistIslamoCryptoZionists.... or how we should be torturing more to keep us safe, or that the economy is turning another corner, no matter what the numerical numbers are....

Since, the person holding the Big Bag of Pooh should still be able, as we see under the FASBY rules of "Mark To Fantasy Island" to say that they have the majikal majik which makes them RULER OF THE UNIVERSE!!!

So yes, we would be well advised to restore a bit of the good old fashion fuddy duddyness of the old school tie bankers who understood the Prudence in Prudent Man Theory was not merely that Sorority Girl from the frat parties....

Which gosh, might work just as well in government as in the actual economy....

Hum... Why we might even do the actual leg work of really relearning what lessons were so apparently lost about the last great depression.... and not the ideologically pure ones, where all we need to do is be as red communist as herbert hoover... but the real actual american history that americans actually lived.
Tags: economics

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