Joe Weisenthal | Aug. 28, 2012, 3:58 PM
Source: Business Insider
 AP Greg Mankiw as Chairman of Bush’s Council of Economic Advisors |
While the rest of the world deteriorates, the U.S. remains a pillar of economic strength.And the reason for this, believe it or not, is the massive deficits that have been run by DC, replenishing the private sector with cash. Despite incredible gridlock, and a party that’s been devoted to cutting spending, the fact of the matter is that the U.S. has not embraced the austerity wave that’s gripped much of the world.
The economy is still fragile, and we need these deficits to continue, which is one reason to think that Mitt Romney would be the better candidate for the economy.
He’s pretty much given up on any pretense of balancing the budget while offering broad tax cuts. What’s more, a Romney White House would make the Congressional GOP forget about cutting spending, and revert to their old ways under Bush (austerity is purely an out-of-power concept).
But that’s not the only reason to like Romney!
Dylan Matthews at The Washington Post’s Wonkblog looks at the three frontrunners to replace Ben Bernanke as Fed chair (Romney said last week that he won’t renominate Bernanke).
One of the names is Greg Mankiw, the well-known Harvard economist who is one of Mitt Romney’s main economic advisors.
As Matthews explains, Mankiw has advocated policies that would make Bernanke blush.
You want to see the Fed stimulate spending? Check this out
In an op-ed last year, he sympathized with Fed critics calling for the bank to allow its inflation target to double from 2 to 4 percent to spur growth, but argued that that policy was politically untenable. Instead, he proposed keeping the 2 percent target but making it a “level” target, meaning that if one goes under 2 percent inflation one year, the Fed will promote inflation of over 2 percent the next year. That would imply a considerably looser Fed policy regime than the one currently in place, one that could be achieved either through additional asset buys (that is, quantitative easing) or other, less traditional policies.
And Mankiw has expressed an interest in those less-traditional policies as well. In another piece, he cheekily suggested implementing a 10 percent negative interest rate on cash by invalidating all paper currency whose serial numbers have a certain final digit. The effect would be that 10 percent of all money would be wiped out, spurring people to spend it or keep it in banks that offer higher, but still negative, returns. In a follow-up post, he argued that a negative interest rate of about 1 percent is appropriate.
As economist David Beckworth has argued, Mankiw has all-but endorsed the controversial notion of targeting nominal GDP, which goes under the category of “unusual unusual” Fed actions.
So if you figure that Romney is the deficits candidate, and surmise that his Fed chair would be a man willing to go pedal to the metal to juice the economy, the case for his candidacy as the stimulus choice is pretty clear.
Related articles
- Who’d be Fed chairman in Romney admin? (wnd.com)
President Clinton explains Mitt Romney’s $5 trillion tax cut and how middle class families with children will get an average tax increase of $2,000 to pay for $250,000 in tax cuts for multi-millionaires.
As President Clinton shares:
“In the first debate, Governor Romney said that he wasn’t really going to cut taxes
on upper income people—he only wanted to cut taxes for middle
class people. That’s not true.”
! 1st – consider the source “AP” ie: (white house report, probably straight from Valerie Jarrett’s propaganda machine) 2nd Your vote does not count ANYWAY! You and I are not share-holders of the US Corporation. Only the shareholders get to appoint defacto leaders. Like: george soros, GE, Coca-Cola, Boeing, etc. If you must vote for someone, WRITE IN A Name of someone that can Lead. The people (taxpayer’s) did not create any deficits- The US CORPORATION (gov’t) DID. Speaking about spreading cash around to circulate- I have been checking the date of printing of every fiat paper fed reserve note that I have had in my hands for over a year- And NONE were printed after ’2009′ ????? Why? Real living people (YOU ARE NOT US CITIZENS)are not intended to get any help from corporate stimulus schemes. PLease awaken!
The unspoken byline of this satanic economic policy is eternal warfare and ever-increasing pressure on environmental regulations and social welfare policies, in order to balance the extreme lack of meaningful economic growth & severe imbalance of wealth that would only become even more out of control under the policies of this wall street/vatican puppet regime. I do not think the world could survive 4 more years of this, but I also don’t think we’ll find out, cos we will be too close to ‘the shift’ by december 2012 for such insanity to come to fruition.
Never forget what the last two GOPs in the WH did to America and the World….
see youtube — CIA Asset Susan Lindauer Can Now Speak 10 years after 9-11
Romney is likely another hand-puppet for Senior and Cheney, as was Junior and Regan.
Was this article posted as a joke Jean? Gary Johnson is the only candidate with any light whatsoever.
Unfortunately, it was a serious article. Hugs, ~Jean
well, Jean,
at least you’re an honest girl,
a rare species these days, I love you
I read on Mathematically Perfected Economy,
which author Montagne, is somewhat of a – loud – loose cannon,
but his – fundamental – idea concerning interest on the money issue,
is – mathematically – sound (& he was quite famous for it 40 years ago, btw.).
You can, like I do, ignore his ‘solution’ of his ‘perfected monetary system’,
that is too farfetched (and would be a major headache, I assure you)
to be practical.
Then carefully read what Ellen Brown (webofdebt com) has to say
about solutions towards this bad idea of interest on the money issue (or Money Supply),
(Ellen Brown, btw, and many more, are accused by Montagne of ‘plagiarism’,
but that’s not quite what it is, he’s rather daft),
Ellen Brown is quite easy to read,
but to really understand the underlying economics,
you have to understand the basics of what Montagne is stating.
You can also ignore most of what Ellen Brown’s ‘hangers-on’
are chipping in on the subject,
she has quite a following these days, but,
that’s mostly immature babbel.
Ellen Brown is the real deal.
Listening to archived interviews with Ellen Brown is an easy way
& the most enlightening,
(all writing about the subject is rather tedious, unfortunately)
she’ll mention simple, elegant solutions, to huge problems,
a lot easier to understand then any writings on the subject.
So, you have to do your homework now,
and understand about Interest, Rollovers, Money Supply,
Treasury Notes, Debt, the – real life – workings of the creation of money by banks,
the FED, the true facts in history (not the drivel of the propaganda apparatus).
In the end, the effort is quite practical.
Ones you master this insight,
you don’t get fooled again by the likes of the Romney’s, the Joe Weisenthal’s, the Mankiw’s,
the Greenspan’s, the Bush’s, the Clinton’s, the Goldman Sach’s, the Friedman’s etc etc etc
And you won’t make the mistake again of seriously publishing articles like this kind of drivel ,
Hugs, ~Marcel
(don’t take this the hard way, I can remember I made mistakes exactly like this, a while back)
I can’t believe that some moron thinks that the Fed. who is the cause of our problem in the first place can fix anything by changing a chairman. Just like changing the president will only change the campaign lies. Has the author of this been living in a cave.
what I see as rather typical ‘libertarian americana’
is this notion I see all everywhere,
of american somewhat right wingers or supposed nationalists or patriots,
that ‘free market’, ‘low taxes’ & ‘cheap healthcare & education of a smallest of government’
is the – god given – panacea to everything
It’s not
the constitutional notion of a ‘right to happiness’
where this all seems to stem from
unfortunately is pure reaction against a Papal theological hegemony
at a time when ‘happy’ was the undesired emotion in the circles of the downtrodden
that only would lead to anarchy, debauchery & less income & power for the RK Clergy,
for, debauchery is the prerogative of cardinals & their Pope,
& the downtrodden, should be seen, but not heard, of course.
- thru – economics dictates
(not taught in the USA, or specifically not at your 35.000USD universities)
that, & I quote, “massive deficits that have been run by DC” have “saved the US economy”,
is pure hogwash, generated specifically for the unwashed masses
the Banks & their banksters,
have enticed the US ‘masses’ & their US government,
to enter in a skewed ‘debt economy’,
since the first Oil ‘crisis’, the S&L rip-off, the financial ‘crisis’ etc etc
but,
if the fault of a failing economy lies with the Banks (the ‘haves’)
then the solution, naturally, should be,
that such ‘haves’ should cough up the value,
to repair said economy
that’s not what is happing
having the US government bail out the Banks with Tax payers money
does Not repair such economy
it simply maintains a flow a money from ‘have not’s’ to the haves
.. check your econometrics, stupid
Is there no end to the insanity? These gangsters have got to be kidding . I guess you just can’t fix stupid.
Obama and Romney are the same. Puppets of the New World Order.
Very true, but those in Congress and all other puppets do not want a good decent American in the presidents office, because, it would destroy them and the criminal plans they have planned for the future. If this insanity is not stopped, I say there will be blood in the streets of America, by years end and most if it will be theirs