Donald Trump's tariffs will not reduce US public debt. The federal deficit will keep growing, but they will be an excuse to further cut taxes on the rich and to ratchet up the new cold war on China.
An absolutely brilliant, beautifully constructed post, Ben. Clear, concise, penetrating, and insightful. Anyone who takes the few minutes required to read this will understand exactly where we are, how we got here, and where Trump and his billionaire friends' economic policies are going to take us.
Norton, it seems you know little to nothing concerning how economies work, about balanced budgets and deficits, study those histories as well and you'll find out that almost all periods of economic depression took place after a balancing of the budget. My advice to you would be a study of Modern Monetary Theory or MMT because everything you say about economics is WRONG! A good beginning would be Stephanie Kelton's 'The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy' Norton, stick to politics, you're better studied in this field and that's the reason I read your work, it's for the most part, excellent.
Now as for Trump and others like him: IDIOTS ALL! And that a Donald J Trump can be in the White House, what does that say about the United States and those who run it? Horrific!
MMT provides an accurate explanation for how the monetary system actually works, but the problem is that the policies advocated by Kelton would be catastrophic in most countries on Earth. The only reason that US deficits "don't matter" is because it has the exorbitant privilege of printing the global reserve currency.
Many developing countries in the Global South run chronic current account deficits, like the US, but because their currencies aren't the global reserve currency, these current account deficits put heavy downward pressure on their national currencies, leading to high rates of inflation, which can be devastating.
The problem is that most MMT advocates ignore the balance of payments (Michael Hudson being the noble exception). They just wave it away by arguing, "Those countries don't have monetary sovereignty". But if MMT is only applicable to a small handful of rich imperialist countries that have sufficient monetary sovereignty, how is it supposed to be useful to most people on Earth?
The reality is that government deficits only "don't matter" if a country runs a consistent current account surplus (like Japan). But it's a catch-22, because, by definition, most countries can't run current account surpluses, because they have to be balanced by a current account deficit somewhere else.
First of all Mr. Norton, we're not speaking as to other countries but to the USofA and its deficits which have nothing to do with the subject of your article. As to your comment "if a country runs a consistent current account surplus" in MMT (which is correct by the way), every surplus is a "surplus" because of a "deficit"! You give no mention of the only problem with deficits and governmental spending and that's inflation. Nor have you mentioned China and their monetary policies, the Bank of China, and how China became an international powerhouse. Also, as to your "he policies advocated by Kelton would be catastrophic in most countries on Earth" mere blither as you give no examples such as Kelton gives one of Greece and why they cannot use MMT as they gave their right of a monetary sovereignty, again, they gave this up to join the EU, a great mistake as look at what's become of them since. Alas, a poor argument you make. And one last thing, nothing about treasuries. The US is no longer a powerhouse in manufacturing nor is Japan but both seem to be managing their money supplies nicely.
I read Michael Hudson religiously as he's the finest living economist on the planet. I've read, have on a flash drive, Norton's interview with Hudson (Yes, I was jealous). I have an entire economic section in my immense library, Hudson being promenade alongside Keynes and Marx, Adam Smith, those economists who Hudson labels "Classical." John Perkins' 'Confessions of an Economic Hit Man' as well as Professor Wolff, Ellen Brown who Hudson speaks highly of (read that somewhere, in one of
"Hudson's" posts), Jane Mayer's 'Dark Money' along with Naomi Klein's 'The Shock Doctrine: The Rise of Disaster Capitalism' In short, I read everything, 20-40 books a year, history, politics, economics, anthropology, religion, I'm reading presently, public health, vaccines, Autism, CFS, AIDS, Bobby Kennedy, Jr, Ortleb, Kory and Hope concerning Ivermectin, and on and on and on, thousands and thousands of pages if only to understand what is being done to the American people in the name of Public health. Perhaps I should stop reading if only to maintain my sanity? don't think so?
This Nation's circling the bowl, quickly. And why, because those who control government could care less about the Nation's people (or any people in the world for that matter. There's a plague ongoing in our world, its name is neo-liberalism and it must be stopped! MMT helps in showing a way that the government, a currency insurer has the ability to finance any program it wishes so long as it doesn't create unwanted inflation. The military gets as much financing as it asks for, without question, you ever wonder why. Perhaps it's because they know they don't have to worry about budgets and deficits (being off the Gold Standard and on Fiat money) because they're fictions propagated to keep the public in-line and set one against the other. This' a way to keep the public ignorant, which I am not! In my response to Ben Norton (who I read on a regular basis and have learned and gained many incites concerning geo-politics and the world at large), I mentioned China, and in my readings concerning China's advancement economically, I learned how they're able to plan but also change in ways that benefit the people, ways which gets them to their goals, in short, creative thinking (read somewhere that China brought over 700 millions of their people out of poverty and why oh way aren't we doing it here? The money can't be found, sorry! And so it goes) for the benefit of all. Oh and yes, China creates its own currency via The Bank of China (seems to be working).
Back to "but maybe you should read a few books by Michael Hudson?" and one last thing. I am a trained Theology (but alas, what I term "a recovering Christian" as in, a recovering acholic, have fallen off the wagon twice (but did receive A Master of Arts and Religion from the Azusa Pacific University on my first occurrence of "falling" whereas I learned the kin art of analyzation wherein you read 5 thousand or so pages, write a 5-page analysis, of given subject and move onto the next one and so on and so forth. Also, studied comparative religion, wrote volumes on the subject, read 'The Complete Mystical Works of Meister Eckhart' wonderful beyond the imagination, along with hundreds of others, "everything", as the Preacher states, "under the Sun.") and as such, just a short tid-pit, Michael Hudson taught me, via "reading a few books by Michael Hudson" a lesson or two about Jesus, imagine that, an economist teaching a trained "Christian" Theologian something about Jesus. And oh, what was the book? Oh yes, '...and forgive them their debts: Lending, Foreclosure and Redemption from Bronze Age Finance To The Jubilee' excellent book. In short, I discovered that Jesus didn't come to die for our sins, hell (forgive the pun) no! He preached the forgiveness of debt and that's what got him killed. As I "read" this magnificent work by "Hudson" I recalled all of years of Church History, all those Christian teaching concerning sin and death, Augustine and all his cohorts and I laughed at all the absurdity, laughed at myself (having read Socrates, I kind of understand his teaching on "the unexamined life" and so forth) as I smiled, as I understood the message of forgiveness of DEBT!
I'd like to compliment your "intended" sarcasm concerning my "reading" but as to your wit, severally lacking: "Shade", a German word for "To Bad!" (one of its meaning anyway)
Brilliant analysis Ben. You nailed it. If only people realized how dangerous Trump and his gaggle of billionaire parasites really are.
So well put.
An absolutely brilliant, beautifully constructed post, Ben. Clear, concise, penetrating, and insightful. Anyone who takes the few minutes required to read this will understand exactly where we are, how we got here, and where Trump and his billionaire friends' economic policies are going to take us.
One of the best articles I’ve read in the past year. Thank you Ben.
Análise brilhante!
Norton, it seems you know little to nothing concerning how economies work, about balanced budgets and deficits, study those histories as well and you'll find out that almost all periods of economic depression took place after a balancing of the budget. My advice to you would be a study of Modern Monetary Theory or MMT because everything you say about economics is WRONG! A good beginning would be Stephanie Kelton's 'The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy' Norton, stick to politics, you're better studied in this field and that's the reason I read your work, it's for the most part, excellent.
Now as for Trump and others like him: IDIOTS ALL! And that a Donald J Trump can be in the White House, what does that say about the United States and those who run it? Horrific!
MMT provides an accurate explanation for how the monetary system actually works, but the problem is that the policies advocated by Kelton would be catastrophic in most countries on Earth. The only reason that US deficits "don't matter" is because it has the exorbitant privilege of printing the global reserve currency.
Many developing countries in the Global South run chronic current account deficits, like the US, but because their currencies aren't the global reserve currency, these current account deficits put heavy downward pressure on their national currencies, leading to high rates of inflation, which can be devastating.
The problem is that most MMT advocates ignore the balance of payments (Michael Hudson being the noble exception). They just wave it away by arguing, "Those countries don't have monetary sovereignty". But if MMT is only applicable to a small handful of rich imperialist countries that have sufficient monetary sovereignty, how is it supposed to be useful to most people on Earth?
The reality is that government deficits only "don't matter" if a country runs a consistent current account surplus (like Japan). But it's a catch-22, because, by definition, most countries can't run current account surpluses, because they have to be balanced by a current account deficit somewhere else.
First of all Mr. Norton, we're not speaking as to other countries but to the USofA and its deficits which have nothing to do with the subject of your article. As to your comment "if a country runs a consistent current account surplus" in MMT (which is correct by the way), every surplus is a "surplus" because of a "deficit"! You give no mention of the only problem with deficits and governmental spending and that's inflation. Nor have you mentioned China and their monetary policies, the Bank of China, and how China became an international powerhouse. Also, as to your "he policies advocated by Kelton would be catastrophic in most countries on Earth" mere blither as you give no examples such as Kelton gives one of Greece and why they cannot use MMT as they gave their right of a monetary sovereignty, again, they gave this up to join the EU, a great mistake as look at what's become of them since. Alas, a poor argument you make. And one last thing, nothing about treasuries. The US is no longer a powerhouse in manufacturing nor is Japan but both seem to be managing their money supplies nicely.
Norton does a great job of corroborating what I have been reading elsewhere.
It seems you know next to everything concerning how economies work, but maybe you should read a few books by Michael Hudson?
I read Michael Hudson religiously as he's the finest living economist on the planet. I've read, have on a flash drive, Norton's interview with Hudson (Yes, I was jealous). I have an entire economic section in my immense library, Hudson being promenade alongside Keynes and Marx, Adam Smith, those economists who Hudson labels "Classical." John Perkins' 'Confessions of an Economic Hit Man' as well as Professor Wolff, Ellen Brown who Hudson speaks highly of (read that somewhere, in one of
"Hudson's" posts), Jane Mayer's 'Dark Money' along with Naomi Klein's 'The Shock Doctrine: The Rise of Disaster Capitalism' In short, I read everything, 20-40 books a year, history, politics, economics, anthropology, religion, I'm reading presently, public health, vaccines, Autism, CFS, AIDS, Bobby Kennedy, Jr, Ortleb, Kory and Hope concerning Ivermectin, and on and on and on, thousands and thousands of pages if only to understand what is being done to the American people in the name of Public health. Perhaps I should stop reading if only to maintain my sanity? don't think so?
This Nation's circling the bowl, quickly. And why, because those who control government could care less about the Nation's people (or any people in the world for that matter. There's a plague ongoing in our world, its name is neo-liberalism and it must be stopped! MMT helps in showing a way that the government, a currency insurer has the ability to finance any program it wishes so long as it doesn't create unwanted inflation. The military gets as much financing as it asks for, without question, you ever wonder why. Perhaps it's because they know they don't have to worry about budgets and deficits (being off the Gold Standard and on Fiat money) because they're fictions propagated to keep the public in-line and set one against the other. This' a way to keep the public ignorant, which I am not! In my response to Ben Norton (who I read on a regular basis and have learned and gained many incites concerning geo-politics and the world at large), I mentioned China, and in my readings concerning China's advancement economically, I learned how they're able to plan but also change in ways that benefit the people, ways which gets them to their goals, in short, creative thinking (read somewhere that China brought over 700 millions of their people out of poverty and why oh way aren't we doing it here? The money can't be found, sorry! And so it goes) for the benefit of all. Oh and yes, China creates its own currency via The Bank of China (seems to be working).
Back to "but maybe you should read a few books by Michael Hudson?" and one last thing. I am a trained Theology (but alas, what I term "a recovering Christian" as in, a recovering acholic, have fallen off the wagon twice (but did receive A Master of Arts and Religion from the Azusa Pacific University on my first occurrence of "falling" whereas I learned the kin art of analyzation wherein you read 5 thousand or so pages, write a 5-page analysis, of given subject and move onto the next one and so on and so forth. Also, studied comparative religion, wrote volumes on the subject, read 'The Complete Mystical Works of Meister Eckhart' wonderful beyond the imagination, along with hundreds of others, "everything", as the Preacher states, "under the Sun.") and as such, just a short tid-pit, Michael Hudson taught me, via "reading a few books by Michael Hudson" a lesson or two about Jesus, imagine that, an economist teaching a trained "Christian" Theologian something about Jesus. And oh, what was the book? Oh yes, '...and forgive them their debts: Lending, Foreclosure and Redemption from Bronze Age Finance To The Jubilee' excellent book. In short, I discovered that Jesus didn't come to die for our sins, hell (forgive the pun) no! He preached the forgiveness of debt and that's what got him killed. As I "read" this magnificent work by "Hudson" I recalled all of years of Church History, all those Christian teaching concerning sin and death, Augustine and all his cohorts and I laughed at all the absurdity, laughed at myself (having read Socrates, I kind of understand his teaching on "the unexamined life" and so forth) as I smiled, as I understood the message of forgiveness of DEBT!
I'd like to compliment your "intended" sarcasm concerning my "reading" but as to your wit, severally lacking: "Shade", a German word for "To Bad!" (one of its meaning anyway)
Wir sind sicherlich nicht überrascht. Donald Trump hat einen äußerst
schlechten Start hingelegt, als er Hobbins mit Namen aus Kanada,
Grönland und Panama jagt. Doch diese völlig unsinnigen Abschweifungen
sind nur ein weiterer Beweis dafür, dass er keinen kohärenten Plan hat,
um mit den fiskalischen und finanziellen Zeitbomben fertig zu werden,
die nach dem 20. Januar überall um ihn herum explodieren werden.
The average american, much like their counterparts across the west, are dimwits and all you have to do is wave a flag and you can rob them blind.
No they will not ever grasp that these tariffs are tax on them.
Musk and Trump actually admit they benefit from immigration