Unless you understand the holy words inscribed above, you do not understand economics. If you do not understand economics, then you will inevitably support the lie that money is physical and limited, and that the U.S. government relies on loans and on tax revenue. By supporting the lie, you will support poverty, austerity, and inequality.
The money powers know this. Hence they pay both right-wing and left-wing propaganda mills to support the lie, each side in its own way.
Dean Baker supports the lie. He is a progressive (i.e. a leftist) with the Center for Economic and Policy Research. I don’t know if Baker is paid by the rich, but I doubt it, since he only has a small office on the fourth floor of the building below, a mile from the White House in Washington D.C.
Mr. Baker consistently makes errors, because he has not heard and obeyed the Word, as carried by Moses above. If I were to attend a lecture given by Baker, and I managed afterward to have a cup of coffee with him, and I explained the Word, then Baker would agree with everything I told him. But as soon as we parted, Baker would resume talking and writing as though he had not heard the Word. I’ve seen this phenomenon many times.
A couple of days ago Mr. Baker wrote an article for Al Jazeera in which he noted (as I have) that the “deficit hawks” are screeching because politicians aren’t currently whining about the federal deficit and the (fake) “national debt crisis.”
The new budget projections released last month by the Congressional Budget Office (CBO) gave them something to complain about. The projections show deficits rising as a share of GDP with the debt-to-GDP also rising. These projections became prime talking points for the deficit hawks. They were like a shot of adrenaline. They are now flooding newspapers with ads warning of the evils of runaway budget deficits.
Correct so far.
If the CBO projections prove correct, we would be on path of rising debt and interest payments. That’s not by itself terrible, but it does imply that interest payments on the debt will be a growing burden on the economy through time.
Thus Baker supports the lie that money is physical and limited. And when you support any part of the lie, the deficit hawks can expand that part as infinitely as the federal government can create dollars. If “interest payments on the debt will be a growing burden on the economy through time,” then deficit hawks will claim that the payments are a catastrophe RIGHT NOW! If you let even one cockroach enter, you will quickly be smothered by roaches.
And by the way, how does Baker or anyone else know what future interest rates on T-securities will be? They don’t. So how do they know it will be a “crisis”? They don’t. And yet the liars (the CBO and the deficit hawks) constantly claim that interest rates on T-securities are about to skyrocket. They’ve been saying that for many years. Not only is it absurd, it wouldn’t be a crisis even if it was true, since the federal government can create limitless dollars.
And even if money was physical and limited, the U.S. government could simply stop selling T-securities. Voila: the “national debt” would stop growing.
Mr. Baker points out that the deficit hawks are wrong, because CBO projections are always wrong. Baker is correct, but why not just say that the projections are trivial, since the U.S. government can never run out of dollars?
Don’t let the deficit hawks fool you. We need more spending and more demand in the economy today, and it is quite likely this will continue to be the case for some time into the future.
“Quite likely”? Try definitely.
Never be gentle or gracious with right-wing sociopaths. They will interpret it as weakness, and they will go for your jugular every time.