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CSIS hosted Richard C. Koo, the world renowned chief economist of Nomura Research Institute, for a speech titled “Great Recessions- Lessons Learned from Japan.”
While yesterday's US stock market close was poor, Asia and Europe didn't follow today as debt in Greece, Spain, Portugal, etc... rallied, their CDS narrowed and stocks bounced. The Greek finance minister said January tax revenues came in above expectations and that spending was below target for the month and said "that means the deficit reduction for January is well within what we have promised." The euro is rising in turn. Also helping is the story that Trichet is headed to the European Union leaders summit a day early in order to address Greece's problems even as the Greek finance...
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November 6th, 2009 at 4:15 pm
How to keep the Debt Ponzi scheme going using Smoke and Mirrors. The Don’t Ask Don’t Tell guide to ruling the world. Where is that reset button?
November 7th, 2009 at 2:09 pm
The sole problem with a Ponzi scheme occurs when the schemer runs out of money to pay the investors. Since it is impossible for the federal government to run out of money, federal deficits never can be considered part of a Ponzi scheme.
Rodger Malcolm Mitchell
November 7th, 2009 at 2:53 pm
Be sure to listen to Richard Koo’s tape. He says what I have been saying for the past 15 years. I hope the government listens to him. They sure didn’t listen to me. Deficit spending is absolutely, positively necessary for economic growth. But, the debt hawks have the nation worried about the cost of universal health care, when we should revel in it. The deficit money spent will grow the economy and will provide health care, too — and it never needs to be paid back. Never.
See http://www.rodgermitchell.com and http://rodgermmitchell.wordpress.com
Rodger Malcolm Mitchell
November 7th, 2009 at 4:57 pm
[...] Malcolm Mitchell 9:56 pm An alternative to popular faith Listen to Richard Koo’s tape at http://www.ritholtz.com/blog/2009/11/richard-koo-great-recessions-lessons-learned-from-japan/comment... He says some of what I have been saying for the past 15 years. Federal deficit spending is [...]
November 9th, 2009 at 12:51 pm
Roger, I think you mean run out of paper. Not run out of money! But perhaps Ponzi is not the right term, how about scam, theft, double cross… No I think Ponzi fits nicely here.
November 9th, 2009 at 5:37 pm
The key caveat is around 26 minutes when Koo qualifies that the stimulus must be only in “the medium term.” Can we trust the thieves in Washington to take away the punch bowl? Doubtful
November 10th, 2009 at 1:24 pm
Got his book. I think he’s nailed it.