Daily Archives: March 21, 2017

Simple Explanation of the Need for Federal Budget Deficits.

I think I finally found a way to explain the impact of federal government deficits on the private economy in a way that non-experts may be able to understand. I’ll give you my full response to a comment on Ed Markey’s post.

Obamacare is saving money although not nearly as much as Medicare for all would have saved. If there is any flaw in the Democrat’s health care changes over the last 8 years, it is that it failed to even include a government option, let alone Medicare for all.

The federal government creates US money. The federal government puts that money into the private sector by spending it. If there were no federal government deficits, there would be no new money added to the private sector economy to replace all the money that is leaving the domestic private sector and going to the foreign private sector because of our foreign trade deficit.

Without the deficits, there would be a huge deflation and there would be such a huge contraction of our economy that you would be seeing massive breadlines larger than during the depression. All of our jobs would be outsourced because of the strength of our money, after deflation, compared to other nations.

We need a gradual inflation to help the transition to more equal wage scales around the world. That transition would help lessen the size of our trade deficits, lessen the need for huge federal budget deficits, lessen the outsourcing of our jobs, and spread the pain of adjustments more equally among all income levels in our country. That adjustment of wage levels is inevitable, but we don’t need to isolate the burden of that adjustment to just the lower 90% of income earners. The oligarchs should not be allowed to foist that burden on only the rest of us.

Some of the world wage scale adjustment will come from the increased standard of living in foreign countries, which will be no burden to us at all.

Ed Markey is no liberal. He is what is called a neo-liberal which translates into not-liberal or anti-liberal.

Here is the link to Ed Markey’s post The real March Madness is President Trump’s budget.

It Is FBI Director James Comey Who Should Be Investigated

Truth Dig has the article It Is FBI Director James Comey Who Should Be Investigated by Juan Cole.

In fact, I can’t make any sense of his actions at all. Why taint Clinton with nothing investigation that went nowhere? Why protect the Trump campaign by keeping knowledge of the Russia investigation from the public? Why drag the Russia investigation on from last July till now (surely the transcripts and emails either provide evidence or they do not)?

This is a perfect example of Greenberg’s Law of Counterproductive Behavior.

If you see a behavior that seems to you to be counterproductive, perhaps you have misunderstood what that behavior is meant to produce.

Neither Juan Cole nor I have figured out what this behavior was meant to produce. Clearly it isn’t for producing any of the obvious results that we can think of.

Black Men In Chicago Are Taking Over Abandoned Property & Rebuilding The Neighborhood With The Youth By Creating Their Own Jobs

Better News has the article Black Men In Chicago Are Taking Over Abandoned Property & Rebuilding The Neighborhood With The Youth By Creating Their Own Jobs.

A lot of the homes are boarded up and abandoned due to subprime lending where the Lenders/Bankers sucked the resources out of certain communities, left them in total disarray, foreclosed on the properties and resold many of them for pennies on the dollar to Hedge Fund Investors.

This shows exactly how Clintonite mayors like Rahm Emanuel can favor the hedge fund managers over the regular residents of the city. This is exactly why the politics of the anti-liberal Democrats is what has given us the Trump phenomenon.

Why couldn’t these Democrats have come up with the idea of rehabbing these houses to keep community residents in these homes instead of gentrifying the neighborhood and enriching the already rich?