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Digging

July 27th, 2011 No comments

Categories: Economics, General, Geopolitics Tags:

What is a “Feminist Economist”?

July 15th, 2011 No comments

Over at Ms. Magazine blog you’ll find an article entitled “A Feminist Economist Speaks Out: Deficits are a Grrrl’s Best Friend” that’s unintentionally hilarious in its absurdity. Be sure to read the comments.

I too responded with a comment but apparently the moderator found it too offensive to post. I’ve reproduced it here:

The magical thinking behind this article is breathtaking. It is the inflationary currency devaluation insanity that most advanced economies learned not to engage in decades ago. Recall the stagflation, price controls, astronomical interest rates, gas rationing and general malaise of the ’70s under Nixon and Carter? You don’t because you’re too young? Educate yourself and you’ll see why responsible people wish to avoid it.

The premise of this article is a non sequitur. Think printing. A mouse click in the Treasury is NO different than printing Dollars to increase the money supply when it isn’t supported by growth in the economy. Issuing Treasury Bonds is selling debt and is exactly like a national credit card. The global economy buys these bonds which must be paid back by USA taxpayers WITH INTEREST. Failure to make scheduled payments is called Sovereign Debt Default. If you wish to understand how the inability to print dollars makes a difference, read about any state that’s in financial trouble due to abysmal bond ratings (think California, Illinois, etc.). The low credit rating means less interest and more risk in buying their bonds because of mismanagement of state economies, i.e. structural deficits (spending more than your revenues). These states have higher borrowing costs. There’s a reason many states have balanced budget amendments.

Want to see the future this “feminist economist” (what the heck is that?) would produce? Look at Greece, who spent 115% of their annual GDP (Gross Domestic Product) for years. They’re being bailed out by the EU (really, the frugal Germans, Europe’s largest economy). Point being, no entity is large enough to rescue the USA if we continue on this unsustainable path. The USA, with 5% of the global population produces 25% of global GDP.

Bottom line: Spending does not create economic growth. It’s exactly the inverse. Also, don’t source your information from ideologues who bend facts to suit their world view. Anyone who places “feminist” before their job title falls into this category.

Categories: Activist Lunacy, Economics, Geopolitics Tags:

Economic Freedom & Quality of Life

July 13th, 2011 No comments

Categories: Economics, General, Geopolitics Tags: