there is no national debt crisis

by Aziz Poonawalla on December 4, 2012

The basic argument is simple: the United States has a fiat currency system, unlike say Greece which relies on external currency (the Euro). Plus, what about inflation? Well, the United States dollar is also the global currency reserve.

The more detailed argument is here by that famously leftwing extremist rag, Forbes Magazine. Quote:

another way to define inflation is to say that the supply of a currency gets out of whack with its demand: too much currency chasing too few people who want to hold it, and so its value drops. Well, when you have the reserve currency, the demand for your currency is always going to be extremely strong. There’s always going to be tons of people, all around the world, who want to use US dollars, because their transactions are conducted in US dollars. (And it’s highly unlikely that this will change soon–being the reserve currency has a network effect, meaning everyone uses the dollar as the reserve currency because everyone else uses it, creating a self-reinforcing cycle that’s extremely hard to break.)

and of course there’s the example of Japan, whose debt is 229% of GDP and yet will never, ever default. Ever. (and their currency isn’t a global reserve currency, either).. link courtesy of that socialist grinder, Business Insider Magazine.

SO, yeah let’s try to get the deficit under control, because after all we are wasting a few hndred billion a year on interest payments that we could be using for better things (like high speed rail, covering the uninsured, R&D for science, etc). But is there a debt crisis? Will we become Argentina or Greece? No. Will China own us? No. Will American civilization collapse? well, maybe, if the fanatics get their wish and enact austerity measures that shrink our GDP and obliterate teh social safety net for our most vulnerable citzens. But that’s got nothing to do with debt.

And will our children pay for the debt today? No. They will be paid – in the form of genuine opportunity for social mobility. Because thats what that debt is doing – paying an investment down, for a better future.


the new conservative movement

by Aziz Poonawalla on December 1, 2012

There is a conservative movement I want to be a part of. It’s the conservative folk here in Wisconsin, who agree with me that there’s something immoral about all the benefits of economic growth accruing only to a small few. They agree with me that there’s something deeply troubling about a world view that labels their neighbors as “government dependent” or that sneers at them for voting because they were promised “gifts”. They agree with me that there should be a limit to a President’s authority, even and especially in times of war. They agree with me that freedom of religion is like freedom of speech – an absolute. They agree with me that the scientific establishment deserves trust and benefit of the doubt.

I mean, Tammy freaking Baldwin won over Tommy freakin’ Thompson in Wisconsin! How on earth did that happen if not for very normal conservative folk looking at the national stage and thinking, “not my values” ? It’s astonishing how loud a message can be and yet how blind the people who need most to receive it are.


How does conservatism survive?

September 25, 2012

I did find one customer who had noticed the calorie labels: Dick Nigon of Sterling, Va. He and his wife, Lea, had stopped by McDonald’s after seeing an exhibit at the Renwick Gallery. Dick had ordered for the couple, noticed the calorie labels and liked them. “I like that you have the information before you […]

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Did the 2009 stimulus reduce the unemployment rate? Yes

August 7, 2012

Unemployment rate data from the Bureau of Labor Statistics: (ref: The stimulus was signed into law in February 2009. Unemployment peaked in October 2009, when only 22% of the money had yet been spent, and the majority of that was checks to eligible Old Age, Survivor and Disability Insurance beneficiaries and railroad retirement beneficiaries. […]

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The LIBOR scandal explained in under 3 minutes

July 26, 2012

Visit for breaking news, world news, and news about the economy (the indispensable Ezra Klein)

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if Obamacare falls, Medicare for All rises

June 28, 2012

“In my first term, we passed health care reform; in my second term, I guess I’ll pass it again,” — President Obama, only half-joking at this year’s White House Correspondents’ dinner There’s a rapidly forming liberal consensus that if the Supreme Court strikes down Obamacare today, then the correct response should be Medicare for All. […]

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The state of the (labor) Unions, post-recall

June 6, 2012

I’m certainly disappointed that the recall of Governor Walker did not succeed, but on another level the recall was a win for democracy in Wisconsin, and is just the first step of a long campaign ahead. However one political reality that we do need to accept is that the era of the labor union is […]

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On, Wisconsin! #wiunion #wirecall

June 5, 2012

Please vote for Tom Barrett for Governor today, Wisconsinites. (and for Mahlon Mitchell for Lt. Governor) find your polling place here: Polls are open from now until 8:00 p.m. If you’re not registered yet, you can register to vote at your polling place. and then, pass it on by: 1. posting this same message […]

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Two tweets about Gay marriage and Obama

May 9, 2012

How many politicians would say “A swing state just voted against this. Let me say I’m for it, because it’s right.” during an election? — Anil Dash (@anildash) May 9, 2012 Significant threat to the President now all up and down Appalachia, and in much of Florida, Missouri. — Joshua Treviño (@jstrevino) May 9, 2012 […]

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Richard Lugar after defeat: “Bipartisanship is not the opposite of principle”

May 9, 2012

Richard Lugar, Republican Senator from Indiana, has been defeated in his primary by a right-wing Tea Party type. Lugar released this remarkable statement in response to his defeat. The whole thing is worth reading but this passage is particularly important: Too often bipartisanship is equated with centrism or deal cutting. Bipartisanship is not the opposite […]

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