The Ayes have it

Lincoln asked his Cabinet to vote on whether he should go through with delivering the Proclamation. The secretary of state stood and said “Nay,” then the secretary of interior followed, and then all of the rest. Each had clearly voted against delivering the proclamation. After hearing each of them, Lincoln stood and said, “The Ayes have it.”
On the 200th Birthday of Abraham Lincoln

In policy briefings, Romney peppers his experts with detailed questions, and sessions can end with Romney and his campaign aides overruling the wonks, particularly when it comes to politically sensitive topics, according to one adviser who attended the meetings but was not authorized to speak publicly. When Romney released his tax plan, he limited a proposed elimination of capital gains taxes on people with incomes up to $200,000—a cap designed to deflect criticism that his policies favor the rich. Hubbard and Mankiw think that ceiling is far too low, says one adviser who wasn’t authorized to comment on internal deliberations and asked not to be named. The same adviser says all of Romney’s top advisers disagreed with the candidate’s vow to take a harder line on China with new tariffs and an official designation as a “currency manipulator.”

Romney’s Experts, Whose Advice He Ignores

In his newest general election advertising message, Gov. Romney continues to hit at China as a currency manipulator. An under-valued Chinese currency bars American products and services as effectually as a tariff barrier. Yet while the World Trade Organization strictly polices tariffs, currency is “not our department.”

Tough on China (David Frum)

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Clonal Antibody
4 years 10 months ago

Beo,
Have you looked at Conyer’s HR870 it has 52 co-sponsors

Guest
beowulf
4 years 10 months ago
Lousy bill. Besides keeping the Davis-Bacon wage and NEPA environmental red tape issues, not only does the bill leave funding subject to available appropriations (which means it has to be voted on every year in Congress), but the amount authorized to be appropriated is capped at revenue raised by a new securities transaction tax (I do like how they drafted tax part of the bill, lean and to the point). The rub is, since this bill only authorizes spending but doesn’t provide an appropriation, there’s no reason for the appropriation committees in future years (remember every year is a new battle) to shut off job funding and just use the transaction tax revenue for something else. The way the Social Security trust fund has a permanent appropriation based on FICA revenue is far better: “There is hereby appropriated to the Federal Old-Age and Survivors Insurance Trust Fund for the fiscal year ending June 30, 1941, and for each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 per centum of— (1) the taxes (including interest, penalties, and additions to the taxes) received under subchapter A of chapter 9 of the Internal Revenue Code [etc, etc].” Of course, its a sorry counter-cyclical program that unnecessarily insists on deficit neutrality at all times (the CBO allows up to 10 years for a program to move to neutrality). Better to junk the spending cap based on tax revenue and even the tax itself and just combine authorizations and appropriations in one short, beautiful blank check clause like the student loan program’s (you want deficit neutrality? Go put some platinum coins to the Fed and book the revenue as miscellenous receipts): “there is authorized to be appropriated, and there are appropriated, out of any money in… Read more »
Guest
Clonal Antibody
4 years 10 months ago

Beo,

Send off a comment to Conyers – and see what response you get from his staff.

Guest
Erik V
4 years 10 months ago

Now Zerohedge is acknowledging the difference between currency issuers and users…nice convert.

http://www.zerohedge.com/news/germanys-cds-pricing-6-eur-devaluation

Guest
Matt Franko
4 years 10 months ago

But if you read it they still are claiming the “inflation is default” nonsense so they dont really understand what is going on… rsp

Guest
Erik V
4 years 10 months ago

That’s not the way I read it. They say “devaluation is inflation” and that dollar denominated CDS on Bunds is driven by FX rates, not credit risk. So while granted they aren’t on the MMR bandwagon, I don’t think they are saying “inflation is default” there.

Admin
4 years 10 months ago

It’s a powerful concept. It’s only a matter of time before more and more people are adopting the MMR views. JKH’s latest piece getting the Tsy and Fed relationship right is absolutely brilliant. We’ve really reworked a lot of the MMT stuff and created an unbiased and objective view of what is. We’ve put in a ton of time and effort really cleaning up the MMT metaphors and confusion on a lot of this. The result is something special in my opinion.

Guest
Erik V
4 years 10 months ago

Yes, I agree. I’m glad to see more people coming around. I think ZH does excellent market analysis, the problem with them was always putting things in an Austrian context, but now they are bringing more economic reality to their market analysis. I hope to see more acknowledegment from other analysts whom I respect. The world could really take a big leap forward if all the smart people were using the correct economic framework to do their analysis.

Guest
Matt Franko
4 years 10 months ago

This is interesting from Frum I guess via Dean Baker:

“Dean Baker offers a fascinating idea. China engages in elaborate and costly maneuvers to hold its currency above 6 to 1 to the dollar. The U.S., which has the ability to generate infinite amounts of dollars, could announce that it will buy Chinese currency at 4 to 1.”

Doesnt look like Frum disagrees. Frum and Baker both seem to be on the same page as far as the truth about US Treasury operations…

Resp,

Guest
beowulf
4 years 10 months ago

David Frum gets it. The trade deficit is the hole under the waterline that has to be plugged in order to deal with income inequality, unemployment, lagging GDP and, curiously enough, the budget deficit. Remember what Wynne Godley said:

“More fundamentally, the budget balance is equal to the difference between the government’s receipts and outlays, but it is also equal, by definition, to the sum of private net saving (personal and corporate combined) plus the balance of payments deficit.
If the private sector decides to save more, the government has no choice but to allow its budget deficit to rise unless it is prepared to sacrifice full employment; the same thing applies if uncorrected trends in foreign trade cause the balance of payments deficit to increase.”

Guest
I'llHaveADouble
4 years 10 months ago

When Romney released his tax plan, he limited a proposed elimination of capital gains taxes on people with incomes up to $200,000—a cap designed to deflect criticism that his policies favor the rich. Hubbard and Mankiw think that ceiling is far too low…

So completely insane.

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