Friday, April 2, 2010

Obama: US would go bankrupt without health changes



This is an outrageous statement by the president. It displays total ignorance of our monetary system. But this view is widespread and it will result in policies that limit our economic growth and bring on the very hardships that come with real bankruptcy. What a shame.

5 comments:

googleheim said...

Is there a specific link or reference so we can see the context of yet another extreme for nothing "crisis - the sky is falling" ?

Tom Hickey said...

I don't blame the president, Congress, the media, or the people at large for this gross misconception. It is the fault of the professions that are supposed to be advising on this. It is incredible that people have spent their entire professional lives in the fields of economics and finance, and don't know how the system works operationally or are being disingenuous, if they do know. This is a failure of the intelligentsia.

Warren Mosler recounts of the story explaining the operational situation to then Senate Majority Leader Tom Daschle during the Clinton administration. Daschle got them an appointment with Larry Summers, then at Treasury under Robert Rubin. After hearing Warren out, Summers replied that he did not understand reserve accounting and left the room, with Warren and Daschle left shaking their heads.

Mike Norman said...

Tom,

Knowing Summers that comment was probably just his usual arrogance, nothing more. It was as if to say, "I don't have time to listen to this. I'm Larry Summers."

The part about not understanding reserve accouting was totally false, I'm sure, but it got Summers out of a situation in which he felt intellectually superior to those trying to "teach" him something.

Tom Hickey said...

Mike, You are likely right about this. Robert Rubin just blew Warren off.

I can't conceive how it would be possible for people like Rubin, Summers, Greenspan, Bernanke, etc., not to know how central banking works operationally. I can only conclude that they are being disingenuous to promote the interests of the oligarchs.

googleheim said...

GOOD POINT MIKE :

AND OBAMA WILL NEVER COME OUT AGAINST THE CLAMP DOWN AND THE FACT THAT :

"THE DEBT IS FROM THE WAR"

DEBT = = WAR

THE HEALTHCARE DEBACLE IS A COVER UP FOR THE WAR AND FOR THE BAILOUT OF SPECULATIVE ARISTOCRACIES OF WALL STREET.