roughly half of the total mortgage debt outstanding
needs to be re fi -ed by uncles

converting a hunk of existing morgage or no mortgage

into pro temp zero interest

perminent zero principal payment land bank mortgages

that would be second to the structure mortgage of course

given 15 trillion in total value

houses and other structures must be 2/3

lot values one third

annual cost of zero interest (5%)market

250 billion….. peanuts

Posted by pinky at 02:30 AM

mac r

thanx for the pol pot shout out
back in the day

before hanoi topppled the bastard

i was one of his more invisible

and loyal flacks

for a while he was the man
no kid u

guy got a bad rap like none other eh ???

i learned how far
a somewhat clever mind can bend itself

around to avoid the obvious

—with application to this post's topic —-

to justify mass horror
ain't so hard

so long as you keep your mind

in a comfortable cubicle

half an earth away from the killing ground

how u do horror face to face
as st paul might put it

or live with it as its valet so to speak

up close and personal day into night into day …

that still remains beyond my grasp

Posted by pinky at 12:43 AM

mark

you implicitly assume
some spawn of a cross copulation

between the salty and the fresh

will be the new messiah model

i doubt it

keynes came from a rejection of orthodoxy
and hand picked notions

from the busy ant hill of heterodox cranks

ricardo was hardly a higher synthesis
but a simpler sharper reduction

the marginal revolution
was a solution to a paradox

nicely formaiized

—-
as to the two schools contending

the new classical touche mr k moment aside
i recall akerloff recent count down

household income and firms investments are not based on last period incomes or revenues

there is no trade off only an ever shifting natural floor on the unemployment rate

tax cuts now only lead to off setting
bond purchases

or debt pay down now

to pay for higher future taxes when

etc etc

and we all need to recall mr k's

pragmatic simplifications

as in

micro price setting stories are frozen into rigid blocks

never the less

the icy clear panglossian idiocy
of the fresh water team's pure transparent

micro thru macro model

ends in says law vindicated

what an achievement

where back thinking like savants

thought before depressions began

being not relevent to anything
beyond itself is a virtue in number theory

but not macro economics

like medical science

macro is all about its applications

pusuing this theory to nowhere

has one advantage

it allows full freedom to play mouth piece

to make big money talk wrapped in the robes of academe

when time comes to lend their name
to daily policy battles

this essential void

at their scientific core

leads to simple hacking

for the plutonian with the highest offer

their Rxs are as class bound as mine

the irony of olympian abstraction
hacks hide away

as to the bright sane fudging white hats
of the salty dog pack

guys like krug and better yet

porcine wizards like larry summers

are in for some laurels

so long as the rude empirics
of fiscal spending yield large enough results

on the job market

no matter whether
its the purest contiguity

or actual causation

they'll have the shadow of

a brighter reality on their side

Posted by pinky at 12:42 AM

who is it that decided
to give this shameless self promoting

three time horror meister

this stinking trout

endless public space and time

to jingle his self preening

banal sanctimony at us

he oughta become a diet doctor

better yet
i suggest

he fly east to the ex soviet camp

this winter

and walk the streets of some russian mill berg

wearing just a sign

reading

'i screwed you once

give me half a chance

i'll screw you again '

Posted by pinky at 12:40 AM

taxpayers btw come in various sorts
and form into distinct tax bases

if uncle takes all the paper junk
off the pri sec's hands

so what

down the road we the people
get our reps

to set up a fund to hold all the buy ups all of em

and another that holds what uncle borrowed to buy the shit

and a tax base
that sees to it

that the sort of tax payer

that gets taxed to service

the second funds net carrying cost

after the flow over from the first fund

is tapped out 

is the same sort

that just got bailed out

by uncle buyin their shit off em

ricardian equivalence
is not just for everyone

its also

for special interests too

uncle does for like ergo he collects from like ..

Posted by pinky at 12:34 AM

“I won't enjoy a tax cut because the knowledge of how much money the country is in debt for weighs on my mind.”

we see here exhibit A

holly is the victim
of her own embedded passion flex

one can only call her witness
a near perfect product

of 30 years

of toxic media bombardment

i agree
uncle sending me a check

for 5 franklins don't cut much ice

the operating policy here seems to be

act like all things
must come to all people

but keep it tepid

really really tepid

and stress

shared sacrifice

patience

prudence ….a steady hand

blah blah blah

shades of carter even more then clinton

but the butterfly may yet morph into a hornet

let us pray .

———-

“All I can see is—there goes the funding for infrastructure improvements—there goes the funding for universal health care”

are you saying there's a borrowing limit here
the more balance sheet friggling the less deficit spending on real production??

who set this up…Jehovah

Posted by pinky at 12:32 AM

“I really have always failed to see the problem with fiscal conservatism and small government”

i suspect
the reasons you cherish both these goals

is the conventional wisdom

the great society was a failure

and now
in the light of free range Reaganisms

recent debacle

we have a second and opposite failure

the notion of limited gubmint
and of

near zero deficits comes spontaneously

to self containing yeoman types

but the jeffersonian vision
no matter how great at the household level

may need a re working

to suit the demands of a nation

its a wrong turn i fear
to reduce

a now raging raving negligent high rollin uncle

into a frugal night watchman

before you see a path forward here
i suspect public red ink must flow

like a spring freshet

Posted by pinky at 12:30 AM

the noble debate going the rounds these days among the econ con pundicrats
might be personfied as a proxy by posse duel betwixt two demigod's of the 1920 's and 30's



irving fisher vs  j.m. keynes



a duel in the sun between lord keynes the patron saint of direct and borrowed gubmint expenditures

and irv fisher the wizard of flatlandian monetary magic





we all know about keynes and his liquidity trap right ??? http://en.wikipedia.org/wiki/Liquidity_trap



well be prepared to meet and greet doctor irving  fisher eugenisist preachers boy and diet nut

father of a self reported “both new and important” deflation debt dive bomb theory of depressions



two sides of the same coin ??? both about the flaw at the core of a private credit based economy ??



well not exactly …there's enough difference between em to muster loudly opposing factions

for today's great policy moment 



uncle as direct buyer of first resort for lots of real neat green stuff

vs

uncle as buyer of last resort for all things figmentary and toxic



put that way sounds obvious who's the heel and who's the baby face…eh ??..but not so fast comrades



back ground:



both men's models were designed in by and for the great depression

but by the time the war to end depression had subsided into a kold peace

keynes and his “theory ” were king of the planet

wheras fisher though home grown and in the roaring 20's every bit as much of a econ con super star as keynes

(and a pro business anti labor super star to boot )irv's rival pardigm was left  largely un attended to

not only in academia but in leading american policy circles as well

up and down the line it was keynes century
and so it remained

all thru the harry ike and jack years

in fact the triumph of keynes and his post war hicksite followers

was so complete by the time of lbj and rmn  in other words by amok time

even the chamber of commerce had its version —if deballed —of keynes

“we're all keynesians now “ dear dick glowered once in front of the press



by the high 60's fiscal deficit thrusts had become the universal Rx for system's mild macro slumps

credit policy was left to the pinch nosed green eye shade guys while the likes of paul samuelson and jim tobin

carefully calebrated the nation's optimal federal deficits





but fisherian deflation theory with its staring role played by the monetary authority

arrived or rearrived back on the scene —albeit as a late entrant after the kook krieg of flame fanners and zoodooers—-

yes irv was a major beneficiary of the highly successful anti keynesian anti fiscalist campaign touched off by 

the deadly bottom line events of the late 70's …. stagflation …the waterloo for keynes and his borrow to spend formula

particularly during the Reagan salad days a new macro mind set triumphed



——-despite the evidence at hand i.e. the economy roaring out of the 82-83 contraction 

prolly more from a keynesianly  huge deficit run and military build up

then thru kodiak volckers final removal of the figure four credit lock he'd applied back in 79 but thats another story —-



in retrospect it would seem for nearly all with eyes ready to shut while open wide

the immiserating events of the failed carter crusade had told an eternal truth:

larger fiscal deficits as attempts to tune up job markets ultimately lead to uncontrolable wage price cyclones

cyclones like the ones that blew  apart the late 70's
also blew apart

the city of light johnny k's acolytes were attempting to build in post war america 

the day of the money base loons had arrived and with them came the retreat of the keynesians into post keynesians
like monks in ireland they kept the candles of truth burning —ahh maybe with a bit of twist to em i must admit —-

and the new respectable macro science found fisher

so what was fisher's angle ?? well his starchy yankee values were repelled by hand outs and confiscatory transfers
and building public pyramids in the wilderness

so he looks on first view

like a nice antedote to the brit gay free cake monger .



fisher x rayed:



in the dark days of the depression

doctor Fisher looking out his yale office window at a misery visible  like any good scientist tried to find a way to reconcile

his deepest disciplinary prejudices with what he observed around him

the unorthodox virilence of the great contraction had shattered his boundless high spirits

after some false starts and fad fancies our man in a moment of clarity  built a simple model of explanation that ..worked

he kept his model of the ”real economy the market based production system intact

but he constructed a new addition to his overlying credit systemhttp://fraser.stlouisfed.org/docs/meltzer/fisdeb33.pdf



short course :

left to the whims and vaguaries of the unfettered market systems

—both credit and production—-

any rapid accumulation of excess unsustainable private debt will lead inevitably

to a period of” realization ” and subsequent panic and crisis

and that leads on to massive asset liquidation and from there we go into a protracted grinding deflation

a down spiral where our already burdensome debt loads become ever heavier as prices and incomes and outputs fall

and consequently defaults grow ever bigger and spread ever wider

okay so that's kinda kool
so on rediscovery who became the number one fans of this fisher deflation model ?? 

well ten years ago that would be hard to pick ..u got folks all the way from krugman on the white hat side to taylor on the black hat side to pick from
but now after all the swaning about of the hi fi credit system these last dozen years or so

paleo-keynesians have surfaced out of the ivy towers to do battle

with the monetary macro uber allas crowd …often as in krugs case

the paleos are reborn post keynesians and all this of course gets muddle by the multitude of shallow syncretists attempting

to blend the two sharply opposed equestrian schools into a common camel jaunt



at any rate looking at the rossters there's a simple policy divide here



at one pole you got yer fisherian policy camp  calling for maximum  balance sheet actions

http://faculty.chicagogsb.edu/john.cochrane/research/Papers/fiscal2.htm



versus those dauntless paleo keynesians

http://robertreich.blogspot.com/2009/01/stimulus-how-to-create-jobs-without.html

calling for maximum infrastructure building unemployment bene extending state budget boosting

by means of federal budget busting etc etc



the credit economy vs the production economy ????

bankers vs hard hats ????



ahh if it were such a simple choice

scrooge or the union kulacks

who would not know which side to be on

but my friends both sides dance inside the circle of doom



stay tuned

Posted by pinky at 09:59 PM

its been years now ..and i've felt the lack like a hole square thru my simple celtic heart…
but finally last nite the ghost of hunter t returned to my bed chamber 



” paine you suckling porker you… whats up ?? what ahh the hill ain't your beat no more..???

the congress beneath your dignity or something ??? ” he did not wait apon my answer

” shit i gotta rush this ..its unofficial ..my being here …officially i'm playing stud poker with my buddy rainer-marie

he has over some fuckin loose ass mother fuckers ,luke apuleius , joe addison bill occam ..i'm missin' this for you paine ….

but if the Ankor scans me while i'm here ….its zoop back down to the pit and pronto ..ready or not ..ahh so well i'll make it quick ..ahh …

maybe you didn't grasp this back there couple three years ago but i can't haunt any one up here but congress watchers

the triad is into pure mission focus owen
..god bless em ..and as a liberator second rate

i'm assigned exclusively to visitatin' with scribes assigned

to one beat and one beat only …and ahh thats

thehouse of the north american peoples representatives …in assembly …that's it… umh..

'cause err um ..well my liege lords my metranomes

the politbureau of that augustist damn body in the solar system

running things in 13 dimensions more or less

well in its ahh … in its ..profane wisdom ultimately …ahh sez my chore

must be as kind of a half assed  catalyst of sorts

assigned to the american people's salvation…

by and thru their congress assembled

seems they figure the house kin kinda goose into being a more perfect union of the peoples by the peoples for the peoples
unlike the roman senate

you know ahh..vis a vis the imperial system and all …..

this time its different ..this time the people's house in congress

is gonna topple the earth's great tyrany

the fuckin dick slingin' unitary presidency …

topple it or i'll fuck ma cass “ 



——btw i'm sorry i can't really describe this patter of hunters for u

it all came at me in shape shifts

like some lunatic sampling

of recollected voices

there was a fair measure of clark gable 

and some off putting gabby hayes and maybe a touch of david brinkley

and lots — i mean lots —

of bob reich … for some reason ….anyhow …. back to mr t —-





“…and now don't u got this het hip adlai type …an adlai in burnt cork no less

right up there in the white house

ready to play the people's emperor bit

(he gets bob reichy right here )… seeing as monocrats

ceaseless strive for the aquistion of more elbow room ..

as in pushing the power  envelop..right?? ..well this guy's gonna try pushin into regions where no man …or at least no man white would dare go  “

suddenly he seemed to catch my bemusement

” okay paine look …umh forget that ..get this… madame speaker the nan there with her hag close ups and lamp shade suits and huge chest cones and all ..well the gal needs to quit this bride of frankenstein bit … cut out the gothic bulevarde 7 veils act for barrack
and spend her quality time clawing up the gop leadership like the wild bloody she cat she is … bypass the prez tango

and just gain traction by  hacking away at those closet fruit top shelf gop-ers

run the bastards back and forth thru a shambles

run an S and M show in the house like nothin seen there

since thadeus stevens ran things



call it congressional reconstruction II ..

the red states reconstruction

the spiritual dixie reconstruction

u got me .. by congressional action alone

la nan there das uber bitch der uber bitches

gotta organize all those mongrel sun belt wage class helots

the undocs the lost black souls ..all the busted red necks and tatoo anne's alike into one big national system of freemens' bureaus …and..and ..and fuck …no ..fuck .i'm getting recalled ??? ..shit …” 

and right then poof he dissappeared 



i have no notion nor even the inkling of a notion where hunter was going with all that



i suspect i'd better attend to the house that madison built once again like i did till we all got dumbed out

by the droopy dong denoument of election 06



so let me announce from this day forth

i shalll resume my reports on matters federally representational

and hope that'll give hunter due recourse

and he can return and fill in the rest of …”the big and only plan”

Posted by pinky at 04:44 PM

any earlier post by your obedient savant here
calling for a huge rebate of the social security trust funds

caught the following comment

—-right on its glass jaw or at least so thought the commenter—



“Trouble is, there is no $2 trillion surplus to distribute — it's already been spent.

All there is are government bonds, and you have to stand in line

with the Chinese and Arab oil states to get anything back from them.”



a mass three card montee game this business of treasury bonds



look if you make the dollars and they cost you nothing to make where's the limit on em..???

righ ???



i know i know shades of robert mugabe and zimbabwe's zillion percent rate of runaway inflation

rise to spook you if any one mentions uncle' has fed with unchecked power of moneyfacturing

http://www.coxandforkum.com/archives/05.03.29.MugabesCampaign-X.gif



“it will lead to a collapse of the dollar system … what of the widows and orphans ???”



collapse wicked privation of the innocent and helpless ??

no not really not necessarily ..carry the story further much like an occasional plebian armed uprising

what's so wrong about an occasional hyper inflation

it may water the tree of liberty

…long as the right people stay ahead of the curve that is

and the right people can as easily be the low prolers and the other honest live by my toil

type citizens of jacobinian republic

just aseasy to keep the ordered masses ahead of the wave as the high rollers



so its the kulacks and shop keepers the petty rentiers and the …

its them that suffer from galloping inflations eh ?? citizen paine



really ??

or is it only creditors in all their shapes and sizes that suffer



inflation can operate like a debt cram down

it can cut real debt burdens in fact in the right hands it could be the cheapoest fastest fairest way to do it



if its planned and taken step by step ….



i throw this out to you mental giants  as a challenge



like the guy in the dunking chair

i'm mocking you all



come on throw your soft balls at the dunking target

go ahead see if you can drop me in the water by hitting the bull's eye



thesis :

uncle can spend all he wants so long as its dollars

worse case he creates the conditions for total transformation

total liberation from the social debt harness



hint as to the how



what if uncle said

since this inflation will be a deliberate policy

and since by proper indexation

all real wage rates and real savings and real pensions of all swaet of the brow bread winner type american jobblers

can be maintained intact despite inflation's mighty surf 



the prudence of scrooge mcduck only insures and protects

the incarceration of society's  producing classes



———————————

imeanwhile n another comment cage …



this boast got busted



“The Social Security retirement system is sound and doesn't need its present obscene two trillion in trust-fund backup.

In fact it doesn't need any trust fund backup at all, ever — but that's another story.”


a call to back up the no back up bit eh ??



indeed as the commenter points out

that battle needs winning before the whole plan can ever hope to roll off the drawing board



listen to me now believe me later …

i shall essay an answer

when the tedium involved seems less

of a stumbling block



then again

perhaps a few good shots at my head

in the cages below here

might stimulate 

a response from me

worthy of … daniel webster

Posted by pinky at 01:13 PM

i have a lady friend econ con phd who bills herself
as a “computational market system modeler “

( i hasten to note at an” independent policy institute “not an ivy university )



she was over at my pad the other evening after the day of historic obamoration

we mulled the darkening horizon over a few tumblers of well qualified winter punch

eventually after ” okay i guess i'll have just one more goblet full ” had arrived

this 6 feet of dignified …”published” …main frame womanhood “made rant ”

and agin nothing less then the very dismal science that is her own ….a foggy day after paraphrase follows :



“here we are owen dear …flumoxed …

while our economy writhes like laocoon in the coils of a great and deadly constrictor

(i doubt she actually said that but its to the same point )

and yet who comes forth here??? who answers the call ???

who will rid us of this monsterous serpent …certainly not any one

practicing my flannel mouthed science

fuck ….'we are in the midst of a great debate '… give me a fuckin brake …

more like dueling clown cars …..both sides both yer cons and yer pwogs …. nothin but an endless procession of motley …

each one emerges from the smallest of doors
unbends into a grave high fillutin prance 

all red of lip and green of hair

right out of the tiniest of autos and each one ..

one after the other … capers around a bit to great fanfares

till they pull some wicked prat fall or something 

each one just like the ones that emerged before them

stomping into buckets 
tumbling on their noses in mud puddles

pant seats ripped wide

trays spilled

ladders to no where collapsing like scissors

none not a one

doing anything more constructive 

then laughing at each other's face… dripping egg….

we are in a crisis my fellow sages …

so let a thousand schools of partisan alchemy contend 

build a  thousand fires of raging insight …
right ???… please ..give me a fuckin brake….

all we're gettin

are a thousand dip shit claims and counter claims

by a thousand lawn dwarfs playing merlin …

there will be no “pragmatic consolidation ”
coming out of this …

no glorious coming together 

not all that rises from this rubbarb must converge



shit

our noble emergency “discourse “

shaped like some fuckin golden dome ??

try again sucker

“the plan boss the plan '” ain't waitin up there at the apex … nope nope nope
let the cyclone howl

its a funnel of folly

  we tiny weebles are doomed ….doomed doomed

20 million of us …red blooded small change americans
needlessly suffering 

our debts  our joblessness

how long dear lord how long

how many day jobbed souls gotta take a beating
around here

before they're ”rescued”… ???

christ even if the bastards blended
all there primo policy shit together …the lot of em

all of the publically touted salvage paths 

they'd come up way short of even money

its all made outa
voodoo smoke 

and 

fun house mirrors …..”





she's on to something eh mates ??



take the battle of the network multipliers 

the musical question
is the multiplier more then one or less then one

is a tax cut worth half an expenditure
or twice an expenditure

you know the ratio of
uncle dollars in to citizen dollars  out

the “crucial” bang for the buck stuff
used by waring wonks in evaluating each others

proposed fiscal stimuli packages



( for us wage smurfs its prolly better

to talk

dollars in to jobs out

but why add something that concrete

to the hideous magic mediations  eh ??? )



we had

an elegently evil example of such mischief from the emminent harvard econ con , algebraic alagorist 

boolean casuist 

and veteran darling of the tower apes

robert t

” three finger “ barro



in a recent wall street journal  piece http://online.wsj.com/article/SB123258618204604599.html

he has this to say about multipliers :



“Back in the 1980s, many commentators ridiculed as voodoo economics

the extreme supply-side view that across-the-board cuts in income-tax rates

might raise overall tax revenues. Now we have the extreme demand-side view

that the so-called “multiplier” effect of government spending on economic output is greater than one

— Team Obama is reportedly using a number around 1.5.”





and sallying forth out of the opposing clown car

ready to meet this barro beast in mots de combat

(in his case for the umpteenth appearance in the center ring )

its none other then the ever barking terrier tribune 
paul of nassau



http://krugman.blogs.nytimes.com/2009/01/22/war-and-non-remembrance/



little mr krugman:



“Is it too much to ask that someone criticizing Keynes actually, you know, read Keynes

.. Or that someone commenting on contemporary policy at least be aware

that the whole reason we’re talking about

fiscal expansion

is that monetary policy has run out of room?”



bash away bash away bash away all

the bladders burst apon assembled pointy heads

all are soaked in their own frenzy

all are sages only to themselves

and baffoons

to each other and ….unfortunately …

all will live to “fight ” another day



ahh the padded satin life of the meritoids of the academy

Posted by pinky at 12:50 PM