By: Bill Bailey

Bill Bailey — Fri, 03 Aug 2012 14:47:45 +0000

The deal with my spending is your income is a flawed model since in the olden days when commercial banks loaned money to mortgage buyers they invested money with a rate of return roughly equal to twice the rate of inflation. There is never a one to one replacement of income for money in an economy which borrows. Borrowing alone creates volume in our econometrics. The branch of lending broke when gamblers went Full Tilt.

It is a big mistake to tell people to stop saving. In fact even if you spend more than you make you’ll not get anywhere but in debt. See Tennessee Ernie Ford. Banks make more money when they don’t have to borrow from the window by paying lower rates to depositors than they loan it out to expanding businesses. It’s that simple. Without savings we are simply kicking the can down the proverbial dirt road.

By: Parnelli Jones III

Parnelli Jones III — Fri, 03 Aug 2012 13:29:36 +0000

I guess Mr. Brooks didn’t think it wise at his time of life to be bold and scorn Fox for their trivial attack on Obama. On the other hand we’re already familiar with Mr. Doocy and the liberal compression of the presidents speech about self reliance and ones place in the universe. Doocy and Co. decided that the president erred by relieving the president’s remarks of their context. They cut off his statement midstream and included the fragment which said collectively the government did everything for you. In contrast what he did say was the government did things which no individual can do like build schools and highways, bridges, tunnels, police forces and armies and some crude form of regulation which allows businesses to go broke and not repay its creditors. But I believe the Republican press and Fox in particular are certain they can do without everyone else on earth. There’s no reason to believe that had Rush Limbaugh been born in 1930′s German he’d have been a nazi and worked with Himmler. And he would have enjoyed forcing people into trains on their way to Treblinka and Auschwitz. He would enjoy the salutes while youth bund meetings were learning how to beat downtrodden old women and children while murdering their fathers and brothers. How Republicans can dismiss this point of view as irrelevant is intolerable.
On the other hand it’s clear that culture did make a major difference between the US and Mexico and Israel and the West Bank. It is unfortunate that Jon Stewart is also an apologist much as Brooks is for WASPs Stewart is for Jews. There is no need to apologize for success born of your own efforts.

Comments on: Brooks, Cohen and Krugman

By: Bill Bailey

By: Parnelli Jones III