Saturday, October 27, 2012

Pete Peterson Has Won - New Economic Perspectives:
"The truth is, we’re not broke.The US dollar comes from the US government (not from China, as we’re led to believe). The US government is not revenue constrained. It is the Issuer of the currency, not the User of the currency like you and I. It plays by a completely different set of rules, yet it behaves as if it is still bound by the shackles of a gold standard. It behaves irresponsibly when it proposes policies to reduce the deficit when unemployment is high and inflation is low. We’re letting millions of Americans suffer because Pete Peterson and his ilk have convinced virtually everyone that we face a fiscal crisis in this country. We live in fear of the Chinese, the Ratings Agencies, the Bond Vigilantes, Indentured Grandchildren, and so on. And this fear is used by politicians on both sides of the political aisle to sell “sacrifice” to the rest of us. And we keep buying.

"And here’s the really sad part. It will never be enough."

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