Monday, July 6, 2015

Simpson/Bowles and their mindless fear mongering. You have to almost admire them for their tenacity in the face of mountains of evidence that they are bat shit crazy wrong.

Check out this tweet from these guys:




So 25 years from now your income may go up from $2,000 to $4,000 per year.

1) Where is there proof?

and...

2) What fucking difference is that going to be 25 years from now???

But that's not all they promise...

They promise that interest rates might be reduced.

This is, like, insane. Rates are NEAR FUCKING ZERO YOU ASSHOLES!

Furthermore as this chart shows, there is no correlation between debt and rates. No, wait, there is...it's the FUCKING INVERSE!

WHAT. UTTER. MORONS.


5 comments:

Random said...

The fed has control of interest rates. They should set them at 0% permanently.
There is no god given need to issue debt at all. Just spend by "printing" and tax "unprinting" money.

mmcosker said...

CBO work is just baselines, and not macro forecasts.

John said...

There's an interview in which Simpson tells Bill Black that he's considered a "communist" by his fellow Republicans. That tells you how nutty the Republicans and, by extension, the congress and the senate have become.

Charles DuBois said...

Someone should ask "how do lower deficits increase economic growth?". If you go to the details from the CBO you will find the higher growth from lower deficits is based upon just one assumption - that the lower deficits will reduce the "crowding out" of private sector investment from Treasury sales, thus increasing growth and keeping interest rates low. This is, of course, a false assumption. The funds from deficit spending end up as private sector savings, offsetting the "loss" of private savings to buy the Treasury securities. Since the private sector also gets the Treasuries, deficits increase private savings. Indeed, Mosler, Mitchell, etc. have explained that without the Treasury sales, there would be a "crowding in" effect. Thus the CBO, Simpson-Bowles, etc. don't know what they are talking about. Unfortunately, there is no one in Washington who can explain this to them - or they don't care to listen. But it is important to note that the entire edifices of Simpson-Bowles, the "Ryan" budget and so one are built on just this one false assumption.

Matt Franko said...

John its probably because he would support higher taxes to "decrease the deficit".... thats why they would term him a commie... rsp,