Daily Archives: October 27, 2013

Rand Paul: I’ll Block Yellen Unless My Bill Gets a Vote

The Wall Street Cheat Sheet has the article Rand Paul: I’ll Block Yellen Unless My Bill Gets a Vote.

Procedurally, Paul could only stop a vote on Yellen’s confirmation if he had the support of 40 other Senators in the body. CNBC reported that the junior senator from Kentucky released a statement saying he would tie voting on confirmation of the new Fed chair to voting on his own bill, the Federal Reserve Transparency Act, an effort that would remove current oversight on the Fed and institute a system of audit involving figures from Congress. The measure would effectively limit the U.S. central bank’s independence.

The Republicans’ appetite for making fools of themselves seems insatiable.  Can you imagine giving the dysfunctional Congress any type of oversight for the Fed?

If Rand Paul could have forced the Fed to go by his policies since 2008, we’d now be in such a deep depression that their would be breadlines all over the country and there would be 25% unemployment.  How could I make such a prediction?  The policies that Rand Paul endorses were exactly the policies that were followed until FDR took office in 1933, and the result I described was exactly what happened then.  Ben Bernanke has had the Fed following its current policies exactly because Ben Bernanke is a deep student of what went on in the Great Depression.  Even Milton Friedman blames these policies for causing the depression.  Of course Milton Friedman did fudge the data so that he could blame it all on monetary policy and deny the need for fiscal policy too.  That little bit of subterfuge is what won Friedman his Nobel prize in Economics.

If you want to get an idea where compromise with Rand Paul will get us, see my graphic depiction at Why We Should Not Always Just Compromise.

Inside the Faux Noise lie machine: I fact-checked Sean Hannity on Obamacare

Salon has the article Inside the Fox News lie machine: I fact-checked Sean Hannity on Obamacare.  This article is one of the ones that were quoted and linked to in the article I referred to in my previous post Fact-Checking Faux Noise on Obamacare.

Credit EmmieH for tracking this article down from This Week magazine.  I don’t think Emmie reads this blog, but I know RichardH does.

Why debt and money created ‘out of thin air’ are necessary, not evil

The PBS web site has the article Why debt and money created ‘out of thin air’ are necessary, not evil.

As for those who think they do know all the answers but haven’t spent years hearing the other side, beware. And with that, here’s this week’s q-and-a, with my answers put in the kind of simple, jargon-averse terms I try to use to explain things to myself.

The answers that Paul Solman provides are pretty good, though I wouldn’t call them flawless.  As if explanation of the real world involving human beings could be flawless.  That is why his caveat above is so necessary and so ignored by the people commenting on the article.  The comments by people who think they know the one and only true answer to these questions may be the most entertaining part of the web page.

I have one quote from my Favorite Quotes page, that really applies.

Mark Twain
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”

On commenter on the post thinks silver has an intrinsic value, and that he knows what it is. I asked him if he were dying of thirst, how much silver would he give for a quart of water. What does this say about the intrinsic value of silver and the intrinsic value of water? If you can’t answer the “simple” question about silver and water, what makes anyone think they have all the answers about something as complex as money?

Fmr. Goldman Sachs Trader Supports Robin Hood Tax As A Way to Move Away from Financialized Economy

The Real News Network has the video interview Fmr. Goldman Sachs Trader Supports Robin Hood Tax As A Way to Move Away from Financialized Economy .

You may remember this tax from my March 2010 post The Robin Hood Tax Song.

This tax is such an unmitigated good, that there is no reason to consider this tax before touching earned benefits like Social Security and Medicare.

With such an obvious solution to revenue raising and to definancializing the economy, why would anybody look to any other action before implementing this one?

So when anyone tries to tell you that there is no other solution than cutting Social Security and Medicare, you just give them the old Bronx Cheer and/or the Razzberry.