The expansionary fiscal contraction bust

If you argue that austerity works in cutting deficits over the longer-term but the short-term pain is worth it, that’s a different argument than the one Republicans are making – and one not likely to get one elected, which is why they’re not making it

Video: Mockumentary Presents: Politics in America

An in-depth (and cynical) look at the current political environment in America, from the Occupy Wall Street protesters to the President’s reaction to the Republican Primary via Omid Malekan, creator of the Quantitative Easing Explained and European Crisis Explained videos

Don’t change the change!

Pippa Malmgren on the Republican Presidential Debate

Former George W. Bush official Pippa Malmgren does a good analysis for Bloomberg of the issues important to voters and how they will play in this year’s presidential election

A few thoughts on economic nationalism

I want to talk a little about the political economy. A few months ago I added the topic tag “nationalism” to the topics this blog covers because I believe this is an issue which becomes relevant during global economic crises

Treason?

If you believed the Republican leaders, you would say this is reckless monetary policy aimed specifically at supporting President Obama, a Democrat. You saw the last post I wrote, with the court scene from “A Few Good Men” tacked on. Boehner, Cantor, McConnell and Kyl would have you believe that Ben Bernanke is the misguided and dangerous Jack Nicholson character and they are the Tom Cruise character, trying to get him to admit to his crimes.

Is Bernanke ‘almost treasonous’ then, as Rick Perry has said he is?

Here’s my take

Achuthan: “It’s Too Late” for Obama on Jobs

ECRI’s underlying message is this: we are in a decade-long post-credit crisis struggle which will mean high unemployment even if policy makers focused on jobs, which they have not

Jon Stewart: Why isn’t Ron Paul the one?

Ron Paul’s campaign put out the video below. Move over, Barack Obama; now Ron Paul is “the one”.Meanwhile the Paul campaign believes the media, including Fox News, is shutting it out in favour of other lesser candidates. Jon Stewart has a good take on this as usual. Take a look

Debt Ceiling Deal: All cuts, no taxes

Unfortunately for President Obama, the economy is not doing well. And the cuts envisaged in this deal make that problem worse. From an electoral standpoint this is already becoming a problem in key swing states like Pennsylvania

On Voodoo Economics, the Debt Ceiling Debate, and Hyperinflation

If you recall, it was George W. Bush’s father, GWH Bush, who, when campaigning against Reagan, called supply side economics’ claims that tax cuts pay for themselves Voodoo Economics. And Bush was proved right when deficits spiralled out of control and both Reagan and Bush were forced to raise taxes. Yet, the Republicans of today are acting like none of this is true

Debt Stalemate Looks Even Worse from Inside

My take: The issue is real and if the debt ceiling is not increased, the US will slip into a double dip recession in which unemployment will rise higher and stocks will sink lower than in 2009. Voters now see this as a predominately political issue. The intransigence has cost everyone credibility as parties who are only interested in the deficit, especially the Republicans as I said it would. But it has cost Obama too. Cantor and Boehner must be aware of this. It is unclear how knowing that a political toll has already been taken will influence their negotiating strategies

Is the deficit ceiling debate a Smoot-Hawley moment?

If I had to make parallels for today’s time in history, I still say this is Hoover’s time, not Roosevelt’s and certainly not Clinton’s

The debt ceiling ratings downgrade

If Cantor doesn’t fold his hand, it will be a political disaster for him and his party and economic disaster for the global economy