Richard Koo: Macroeconomic Management After a Crisis (2/7)

[metanovastudios]

The Holy Trinity of economic powers: Consumers, Businesses, Government. Economic health is determined when these three powers engage. However, right now two of these powers are in retreat; focused on reducing their debt; licking their wounds: Consumers and Business. That leaves the Government to prop us all up. Until the Consumer and Business are back, we are unfortunately tied to deficit spending. It is foolish to demand otherwise. We have been here before (thanks Japan).

[vonGleichenT]

Debt to GDP in Japan is the worst ever. Go short and make a lot of money on it. Anyway his presentation was very interesting.

[tvstealer]

comrade obama will never cut spending...which is good i guess according to Koo

[sysFail81]

fucking let him finish, idiot!

[WillOrng]

Joan Muyskens at Maastricht University understands this, as does the UMKC Modern Monetary Theory School and Bill Mitchell Newcastle University Australia.

[slobko]

Obama and the Republicans will cut spending. And we will have a depression. Sad, but O will go down as the Herbert Hoover of this century.

[syujengchyang]

Just listen to him!!!!!!!!!!!!

[barryinspace]

Koo is spot on. Why do so few policymakers understand that if the private sector is paying down debt and the government also pays down debt then the money supply shrinks. Someone has to borrow money to sustain the flow of credit and therefore the flow of incomes in the economy.