Category Archives: The dismal science

Econ4 Video on the Housing and Foreclosure Crisis (With Your Humble Blogger in a Supporting Role)

Econ4, which is a group of reform minded economists (that may sound like an oxymoron but it isn’t) is presenting a series of videos on major topics where it believes our policies are seriously out of whack. Their latest release is on housing and foreclosures. Your humble blogger is a participant.

Philip Pilkington: Monetary Policy and Metaphysics – How Economists Try to Naturalise Terrible Policies and Disappear Into Their Own Theories

Yves here. Philip Pilkington makes an interesting argument in this post, namely, that the method preferred among mainstream economists for managing the economy encourages investors to speculate in financial instruments rather than invest in real economy assets and projects.

Dan Kervick: Will We Be the Lamest Generation?

Yves here. Any post that starts out by making fun of Matt Yglesias already has something going for it. But one bit I quibble with. Kervick suggests that Social Security might be excluded from a Grand Bargain. Don’t get too optimistic.

Why the Fiscal Cliff is a Scam

This is a very good, high level interview of Jamie Galbraith by Paul Jay of Real News Network. It explains how the fiscal cliff scare was created and why Obama and the Republicans are united in fomenting a false sense of urgency. This is the sort of piece I’d suggest sharing with friends and relatives who’ve been unable to miss the news coverage and want to get up to speed.

Obama Calls on Citizens to Ask Congress to Slit Their Throats

If this weren’t so terrible, it would be funny.

Marshall Auerback: Even a Deal on the Budget is Bad for the American Economy

Yves here. One of the frustrating aspects of the Great Catfood Debate is that it boils down to not whether, but how much, catfood you get in your future. Marshall Auerback explains why any of the proposed outcomes to the budget negotiations will slow growth and possibly produce a recession.

Hugh Hendry: ‘We’re in the death spiral of mercantilism’

You have to give a fund manager points for admitting to having a “history of contentious posturing.” Hugh You have to give a fund manager points for admitting to having a “history of contentious posturing.” Hugh Hendry’s also a reformed gold bug, which shows an unusual flexibility of thinking (once people join the gold cult, they seldom leave). Even if you don’t necessarily agree, his talk will serve as a useful grist for thought (hat tip Ian Fraser). Hendry discusses the end of an broadly adopted national strategy, mercantilism, and what he sees as the implications.

Why Greece is a Model of Economic Mismanagement

By Delusional Economics, who is determined to cleanse the daily flow of vested interests propaganda to produce a balanced counterpoint. Cross posted from MacroBusiness.

Today I thought it was timely to have another look at the Greek economy from a sectoral balance perspective which will hopefully provide some clarity on exactly what we are seeing in Greece, but just as importantly also provide some broader context to the likely outcomes for other Eurozone periphery nations with similar economic dynamics.

Greenspan’s Switch to Debt Scaremongering

Stephanie Kelton provides two video clips to underscore the point that until quite recently, Greenspan made the point that MMT types do: that the US as a currency issuer, can always pay its debts.

Tell University of Western Sydney They are Dopes for Planning to Dump Steve Keen

The Australian press is giving raspberries to a plan by the University of Western Sydney to pretty much eliminate its economics department, which would result in Steve Keen and other instructors being fired. Keen is a well known and respected heterodox economist, so this move looks particularly misguided.

Bill Black: Jobs Now – Make Obama’s Priority Reality and Expose the Lie of Lazy Laborers

By Bill Black, the author of The Best Way to Rob a Bank is to Own One and an associate professor of economics and law at the University of Missouri-Kansas City

President Obama gave a major speech today on his legislative agenda. He said that the overriding national priority had to be jobs. We agree.

The problem is that Republicans and Democrats are pushing a “Grand Bargain” that would reduce jobs.

Bill Black: Wall Street Urges Obama to Commit the Great Betrayal

By Bill Black, the author of The Best Way to Rob a Bank is to Own One and an associate professor of economics and law at the University of Missouri-Kansas City. Cross posted from Benzaga

Wall Street’s leading “false flag” group, the Third Way, has responded to the warnings that Robert Kuttner, AFL-CIO President Trumka, and I have made that if President Obama is re-elected our immediate task will be to prevent the Great Betrayal – the adoption of self-destructive austerity programs and the opening wedge of the effort to unravel the safety net (including Social Security, Medicare, and Medicaid).