- Joined
- May 12, 2014
- Messages
- 6,815
- Reaction score
- 4,420
- Gender
- Male
- Political Leaning
- Liberal
"We don't have to have high unemployment anymore. We don't have to have uncontrolled financial crises. We don't have to have all the bad things that go along with a recession. We have the ability,... we have the tools necessary to resolve all those things. ...And the reasons people have for standing in the way of doing those things are just not valid."
Frank N. Newman, United States Deputy Secretary of the Treasury
Some highlights:
4:30 The Federal budget does not have to be balanced. Government finance is nothing like household finance.
5:50 We cannot run out of money, because the government can create money.
6:50 The "national debt" is a very misleading term.
9:00 There is no "great burden of debt" that will fall to our children or grandchildren. The idea that this debt has to be repaid simply "defies history."
10:45 The national debt is only about 7% of the total financial assets of the U.S., so it's not that major anyway.
14:00 Reserves do not get lent out.
15:00 QE created $2.5 trillion in new deposits (which cannot be lent out, btw).
17:00 As demonstrated by the $2.5 trillion created by QE, "too much money" does not automatically cause inflation.
17:50 "Too much national debt" is not a problem, either.
18:45 The idea of "bond vigilantes" is ridiculous.
What are the downsides of deficits?
What are the downsides of the national debt?
Why aren't we experiencing the inflation predicted by mainstream economists for so many years?
Why aren't we experiencing the high interest rates predicted by mainstream economists for so many years?
Can anybody here substantiate any of the old economic standbys that Mr. Newman claims are false?
Frank N. Newman, United States Deputy Secretary of the Treasury
Some highlights:
4:30 The Federal budget does not have to be balanced. Government finance is nothing like household finance.
5:50 We cannot run out of money, because the government can create money.
6:50 The "national debt" is a very misleading term.
9:00 There is no "great burden of debt" that will fall to our children or grandchildren. The idea that this debt has to be repaid simply "defies history."
10:45 The national debt is only about 7% of the total financial assets of the U.S., so it's not that major anyway.
14:00 Reserves do not get lent out.
15:00 QE created $2.5 trillion in new deposits (which cannot be lent out, btw).
17:00 As demonstrated by the $2.5 trillion created by QE, "too much money" does not automatically cause inflation.
17:50 "Too much national debt" is not a problem, either.
18:45 The idea of "bond vigilantes" is ridiculous.
What are the downsides of deficits?
What are the downsides of the national debt?
Why aren't we experiencing the inflation predicted by mainstream economists for so many years?
Why aren't we experiencing the high interest rates predicted by mainstream economists for so many years?
Can anybody here substantiate any of the old economic standbys that Mr. Newman claims are false?