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An admirably cogent and accessible explanation of why the so called “fiscal cliff” is pure political fear mongering in the form of an audio interview between Harry Shearer aka Ned Flanders and an actual economist, Dr. Stephanie Kelton. The Democrats and Republicans would strongly prefer you not understand this lesson in fundamental economics. The upcoming “Grand Bargain” between Obama and the GOP led House isn’t about protecting the dollar or the country’s solvency but about destroying/privatizing the social safety net, privatizing education and essentially gutting or destroying all government except “defense” so that already obscenely rich people can become even more obscenely rich. Um, guess who are paying for both the D & R campaigns? Those same obscenely rich people.
http://www.kcrw.com/etc/programs/ls/ls121028le_show_-_october_28
24 Comments
Kurt, this post deserves a comment, so here it is:
Recommended.
I should have warned people that the interview is 50 minutes long. But it’s time well spent if you want to understand why the whole framing containing the “fiscal cliff” canard is non-reality based and is in fact just another scam perpetrated by the duopoly to steal our wealth and redistribute it to the .1%
Thanks.
Hi Kirt, rec’d on the basis of your text, and I would add this note:
Um, guess who both the D & R campaigns are paying the money to? Those same obscenely rich people. NBC, ABC, Google, the ad agencies, the political consultants — seriously, campaign money is not *spent* it is only redistributed.
Remember this concept and try it on other situations that you encounter. Any lightbulbs go on?
Going now to look at the video. Will report back, unless power goes out.
It is well worth listening to.
Kelton is articulate and does a great job of explaining our modern incarnation of money and stripping away the bullshit surrounding the “fiscal cliff” .
Stephanie posts at New Economic Perspectives with some other great folks, and is a proponent of MMT. (I will never grok MMT; old dogs, new tricks, etc.) ;o)
Rec’d on spec, Kurt, even though I have zero time to listen. (another grin)
And worth the time, should be required listening.
As Shearer says, Kelton explains it in a way that even I could understand.
Download it and listen at your leisure. You’ll thank me, err, I mean you’ll thank Kurt
Nah; even letsgetitdone has given up on me. I’ve read the MMT primer half a dozen times, and a boatload of posts at Correntewire and Naked Capitalism. My conclusion is that a person needs to grasp monetary theory in order to take the leap too MMT. I know enough fiscal policy to be dangerous, but I’m about at this level with monetary policy. ;o)
Please note that I prefer it to the ‘revisited‘ one a friend sent me. ;o)
But then, I’m still waiting for the Classics Illustrated version of Zinn’s A People’s History Of The United States. And…so it goes.
OK, I’ll make one more attempt at twisting your arm and then I’ll slink away
Listening to Harry and Stephanie and the conversational way that Stephanie explains it just might be ticket you need.
Seconded. Wendy, give this nice woman a chance to explain it to you. I’ve never heard it done more plainly or clearly– which is why I posted this.
Here’s a direct link to the interview in mp3 format:
http://download.kcrw.com/audio/1226980/ls_2012-10-28-170620.6929.mp3
I am open to bribery; just a poor blind widdy with six deaf kids to feed.
(Just a day with no spare time to speak of. RL will have its way with us some days, no? Maybe tomorrow, dear.)
Not bragging, but I know a lot more about money and monetary policy than the average schlub, because – dog help me – it interests me.
I said that to point this out. I learned from this.
Thank you KS for bringing to FDL this excellent in its clarity and abide with simplicity discussion betwixt Harry Shearer and Dr. Stephanie Kelton. It was/is a worthy expenditure of time taken to listen to and take in this lucid discussion about money,banks,banking,deficits,austerity and fiscal facts and follies.
Recommended
During this season of acute WH partisan politics where playing Political Twister is the norm as Dbots and Rbots seek to connect and make connections that have little or nothing to do with the knowable,known or knowing records of either D or R WH candidate we get imbecilic “POTUS” debates and zealot/partisan driven tribal and team misdirection politics of the mostly just plain dumb sort.
It was and is so very positive and revealing to be able to listen to the sane,intelligent inquiries,discussion(s) and conveying of information,knowledge,facts and truths that took place between HS and Dr.SK. Again thank you KS for putting the link in place.
Too bad Pete Petersen has such a great ally in Barack Obama who has and is doing more as a DINO POTUS to advance what G.W.Bush as a R POTUS could not do. At this point those who refuse to see /choose to ignore seeing or admitting the danger of re-electing Barack Obama as POTUS will and do deserve all the betrayal(s) Barack Obama surely intends to impose on 90% of Americans in service to the Pete Petersens and Dick Cheney types who seem to have Obamas eyes,ears and hands held in thrall.
The R vs. D flimflam was/is fully exposed regarding the false premises of deficit perils,austerity benefits and what the post Bretton Woods American Dollar is and remains no matter what Pete Petersen wants to toss propaganda and bribe politicians about. It is plain to see a lot of needless suffering is being wreaked on Americans post 2008 for very stupid and patently untrue reasons,reasoning and imposition of ruinous thinking/goals/policies.
Not electing Barack Obama to be POTUS again is good politics as it will send the clearest message to Ds they are not going to be able to succeed as DINO Rs doing what the real Rs cannot do.
The R vs. D duopoly has become moribund as the American political premise and conductor of post WW2 American WashingtonDC regime/regimes.
American imperialism,militarism and corporatism as so readily conducted by either Rs or Ds and abuse of fact,truth and justice served and done as seen since years 1980,1988,1992,2000 and 2008 underlines the need to throw off the R vs. D regime arrangement that is now bringing so much political failure to so many 90% Americans. It was/is ludicrous and abusive that during this so called WH election the Rs and Ds are able to close out,shut out other national voices and povs regarding American militarism,imperialism and corporatism and who benefits and gets the big $$ based on what a Obama,Bush or Clinton run WH does or did or chose to not do.
Americans would do well to stop meddling in other nations internal affairs and clean up our own. Sooner.Better.
Just close your eyes and imagine that the Treasury burns every dollar that it collects through taxes, fees, borrowing, fines, etc. and pays its bills with freshly printed money. That’s it! You now understand MMT.
Of course, you’ll ask: “If it’s that simple, why do we bother to collect taxes?” The answer is “to give money value.” It’s a simple matter of supply and demand. Taxation creates a demand for the dollar and diminishes the supply of dollars.
In fact, it’s best to think of a dollar as simply a transferable tax credit — h/t Warren Mosler for that insight.
Hi Kurt. Rec’d. Good stuff.
Remember when I brought you Stephanie’s article that linked to one of yours? ;o)
And I think you expressed that imagery in that one, too. I’ll listen, try again to grasp it.
Do you think deficits and public debt are bad? And, if so, why?
Yes, indeed. In fact, I was just now trying to find that link but without much success. Would you happen to remember where it was?
Only cuz I hit the right search terms in da google cache.
Well, golleee, econobuzz. I didn’t say I didn’t learn anything along the way. ;o)
I listened while I worked on my birrrrd cards, dear; distracted once in a while, but yes: she was stellar, and Harry was fantastic as an interviewer.
The problem with some of these MMTers is that they lead you into the trees instead of concentrating on the forest.
Wendy, I agree. Stephanie did a wonderful job in replying to Harry Shearer’s questions. It’s totally worth the time.
Also, I’m about to take another pass at the MMT counter narrative to Peterson and the austerity mongers as soon as I finish these comments.