Professor James Galbraith on Obama economics team

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It was announced Professor James Galbraith was on the new list of economic advisers.

  • He knows that government spending is not revenue constrained.
  • He knows solvency is not an issue for the government.
  • He knows the ‘pay-go’ notion is flawed and works against our standard of living.
  • He knows the criticism of Bush leaving the debt to our children is absurd.
  • He knows there is no operational risk of social security ‘running out of money.’
  • He knows social security payments are not ‘paid for’ per se by taxes or the trust fund accounting.
  • He knows the Fed is about price, and not quantity.
  • He knows imports are a real benefit, exports a real cost.
  • He knows our policy of blocking central banks and monetary authorities from accumulating $US financial assets is killing the goose that’s been laying the golden eggs.
  • He knows that unemployment is the evidence that the deficit is too small.
  • He knows that loans create deposits and reserves.
  • He knows that savings is not needed to have funding for investment.
  • He knows that our taxed advantage pension and retirement systems and programs reduce demand and cause the need for the government to run deficits to add that demand back.
  • He knows the price level is a function of prices paid by govt. and not a function of interest rates set by the Fed.
  • He knows the Saudis (and maybe Russians) are setting the price of crude.
  • He knows this is causing a cost push ‘inflation’ that is punishing working people disproportionately.
  • He knows biofuel policy is converting the world’s food supply to fuel and starving millions to death.
  • And a lot more.
  • And he knows the others on the Obama economic adviser list either don’t know, pretend to not know, or have long forgotten all the above.
  • And he knows Obama’s vision can only accidentally be achieved with his current economic rhetoric.
  • And I know he has a fighting chance to be heard.