Thursday, March 23, 2017

Deficit financing is a global plan, not an accident.

That is correct!  Every country in the world with exception of Luxembourg is heavily involved in deficit financing now and too many years into the future.  Even Norway!

The world economy has crashed!  Trading partners went broke.  The most sought-after customers or accounts are those with the heaviest deficit!  China who can rock the world's boat easily is the highest deficit while embarking heavily on financing Nuclear plants around the world, a profitable segment for them.

William Vickrey, awarded the 1996 Nobel Memorial Prize in Economic Sciences, commented:
Deficits are considered to represent sinful profligate spending at the expense of future generations who will be left with a smaller endowment of invested capital.
This fallacy seems to stem from a false analogy to borrowing by individuals. Current reality is almost the exact opposite. Deficits add to the net disposable income of individuals, to the extent that government disbursements that constitute income to recipients exceed that abstracted from disposable income in taxes, fees, and other charges. This added purchasing power, when spent, provides markets for private production, inducing producers to invest in additional plant capacity, which will form part of the real heritage left to the future. This is in addition to whatever public investment takes place in infrastructure, education, research, and the like. Larger deficits, sufficient to recycle savings out of a growing gross domestic product (GDP) in excess of what can be recycled by profit-seeking private investment, are not an economic sin but an economic necessity. Deficits in excess of a gap growing as a result of the maximum feasible growth in real output might indeed cause problems, but we are nowhere near that level.
Even the analogy itself is faulty. If General Motors, AT&T, and individual households had been required to balance their budgets in the manner being applied to the Federal government, there would be no corporate bonds, no mortgages, no bank loans, and many fewer automobiles, telephones, and houses.
— 15 Fatal Fallacies of Financial Fundamentalism[2]

This leaves in Alberta the Wild Rose Party and the Conservative Party whining doom and gloom but neither will  step up to the plate and tell the people it was their policy and their extravagance and philosophy that put us in this situation; worldwide; not just Alberta and Canada who both are in better shape than most of the world.

What can you expect out of a Jason Kenny?   He views Trump as a success by every measure.  Worships Trump you might say.  And, you can expect him to follow Trump's example in finance and administration to the letter right up until Trump is impeached.

Keep in mind Alberta would be in a much different position had the Conservatives not drained the Heritage Trust fund dry of some 780 billion dollars!  And, on Kenny's advise Trudeau marched out a whole string of lies about our economy and his phantom surplus.  (Kenny is noted for writing much of Harper's speeches and press releases.  His biggest asset is an Ego, a very large one.

Trump has ripped up all the Environmental agreements because there is nothing we can do about it anyway.  Trump has cut funding to seniors, the poorest feeling the largest cuts.  For some reason, his daughter now has access to all the top secret defense data in the US.  This is why I suggest an impeachment is sure to follow.


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