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Regarding the last sentence, "Who controls the printing press in the US and who controls the press in Spain?" , Paul Krugman says that that is the fatal mistake that has gotten the PIIGS into trouble: they do not have the power to run a printing press at a higher speed. -- As if prosperity comes out of the output of a printing press. This article provides subject matter to think about the meaning of "savings". Unless you are a hyper-Mormon survivalist, and put vast quantities of provisions into a cellar for future risks, 'savings' amount to a trust relation. You loan your current production to someone else on the promise that they will pay you back at some point in the future. Not much different than 'Pay as you go'. The only difference is in the trust and surety of the payback promise. -- Now government, Spain is today's example, is showing that their promises are worth == a soiled piece of toilet paper. -- So, what to do? What to do?
And long past time we de-authorize their authority to spend money for those other things. -- It is "easy" to de-authorize spending on military and war. -- But what about those OTHER big big spending items?
As related in the article, craven politicians, Democratic politicians, set up welfare programs and then promise to protect the payments people get from those programs and attack challengers who would end (or reform) the programs. It is all a bit like 'The Little Shop of Horrors', with welfare as Audrey II. Having created the programs the craven politicians must keep feeding them. If they stop people will riot. It is not sustainable. Ultimately there will be riots, and "leaders" will emerge who claim that what-the-program stands for can be rescued by attacking some segment of the population. Today the 1%. In the past, and perhaps the future, the Jews. Etc. We can dread that society will fall into poverty, swept by waves of pogroms against someone, anyone, who is better off than the masses.
David3036 wrote "Social Security retirement benefits and Medicare are EARNED over a lifetime. And SSI is only for the disabled (although it's handed out too freely and there's a lot of fraud.)" Social Security and Medicare same as SSI. The politicians promised and provide too-good benefits and taxed too little. A mismatch of outgo vs. income. And there is plenty of Medicare fraud too. -- And many cases the same with unemployment benefits, along with the moral hazard of too many people not getting serious about getting a job until the benefits are about to run out.
The conclusion of the article is that with interest rates held low the stock market, as measured by the DJIA, etc., will go up and up and up. A contrary opinion expressed by the Hussman Funds a few weeks ago is that with interest rates held to ZIRP, the stock market will rise to a point where stock market returns are just as bad as fixed income returns, and go no higher. We are there and, absent any improvements in the real economy and the income it produces, the stock market can't be expected to go any higher. Now, who is the greater fool?
Sure there are people who could stop him, just like there were people who could stop GW Bush, or at least limit him. Too bad those people MOSTLY like what Obama is doing and WON'T stop him.
In response to:

America’s Economic Tinderbox

David4 Wrote: Aug 20, 2014 8:24 PM
Re. Minimum Wage: An example of economics by decree. I am reminded of history. Both Revolutionary France (1790s) and the Soviet Union attempted economics by decree. In both cases food production dropped to the floor, and starvation occurred.
In response to:

Stupid Is As Krugman Does

David4 Wrote: Aug 18, 2014 9:00 PM
I would be more interested in cutting government spending, and government over-regulation. Everyone agrees that there is government wasteful spending and excess regulation. Now to cut it! If JWJ wants to propose spending-that-benefits the wealthy, such as loaning money to Solyndra or Greentech, or the Export-Import bank, or ... then I would be glad to hear it and applaud it.
In response to:

Is the Criminal Justice System Racist?

David4 Wrote: Aug 18, 2014 2:39 PM
I read, in a different context, "Explaining is not justifying." We have "disparate impacts" on different communities. We have disparate interpretations of why that is so. With some communities believing one thing and other communities believing another. Why have riots and looting from black communities resentful of what they perceive to be injustice. What do we do about it?
In response to:

Barack Obama’s Zero Sum World

David4 Wrote: Aug 18, 2014 2:19 PM
There are a few different flavor of "zero-sum-world". Only the Greens believe that the world is fixed unchangeable size and that someone's gain is another person's loss, always. (And they think the size should be smaller. ...) Instead, most of the Obamaniks believe that the world and economy can go "Forward!", but that no one may go ahead unless EVERYBODY can and does go with them. (And that the equalization of fortunes MUST happen NOW.) -- Sadly, this sort of equality of status and equality of advancement has been tried, and has failed where and when it has been tried. So far as I know, equality (more or less) can only be done in small Bushman hunter-gatherer groups. That is a pretty "happy", and pretty meager, existence. It isn't available to most of us and most of us don't want to live that way.
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