And Now A Word From Your Intellectual Superiors …… Matt Yglesias Says Not To Freak Out About Our National Debt Because We Can Never Run Out Of Money

Matt Yglesias ✔ @mattyglesias

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Here’s why you shouldn’t freak out about the national debt: http://www.vox.com/us-public-debt/

There’s a short, but, incredibly vapid and naive video at the link.  It’s fraught of errors, (the most obvious is confusing public debt with national debt), and erroneous thoughts on debt and inflation, all without noting the obvious bind we’re in.

The premise is that we shouldn’t worry about our debt because we can never run out of cash because we can print our own money. 

The video also notes that the Fed has tools to fight inflation.  But, what Matt is describing is an overheated economy.  He notes that our “inflation” is near all time lows, but, fails to understand the errors in calculating inflation, and notes that interest rates are low.  But, with low inflation and low interest rates, our economy is still in the crapper.  Which is the corner we’ve painted ourselves in with our QE stimulus which has failed to stimulate anything. 

Further, our debt can cause us to no longer have the ability to finance our debt.  We finance our debt by selling bonds and the like to other nations and people.  There’s no rule saying they have to buy our crap bonds.  Further, the more debt, the more we have to pay in interest to service the debt, which causes us to have less funds available for the many things people like Matt want the government to provide. 

Printing cash, in and of itself doesn’t mean we can’t run out of money because our cash is only good for the value people perceive it to be.  It’s financed wholly by faith and credit of the US.  When the world loses faith in, and refuse to credit the US, then we can print all the worthless cash we want, and it won’t finance even the printing presses or even electricity for the imaginary transactions referenced by Yglesias. 

It’s the stupidity embraced by people like Yglesias which will cause the eventual downfall of the US if we don’t change our ways very soon. 

As noted by Twitchy, the obvious question to ask is ….

But…Republicans! @Gooms

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@mattyglesias According to your posit, why don’t we just print 12.5 Trillion dollars to pay off the debt?

But, why stop there?  If we can never run out of money because we can print, why don’t we just print enough money for everyone in the country?  How come we don’t do that Matt?  Just think!!!  You would never have to work again, and the world would never have to be subject to your abject stupidity ever again!!!  Win/win!!! 

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34 Responses to And Now A Word From Your Intellectual Superiors …… Matt Yglesias Says Not To Freak Out About Our National Debt Because We Can Never Run Out Of Money

  1. leftinflagstaff says:

    ‘Never run out of money’ has always been one of socialism’s favorite lies.

  2. suyts, by ”printing” more money = american people to buy more Chinese plastic junk. printing more money few years ago made Zimbabwe with the most millionaires on the planet, BUT 1k of bread became 8 million dollars, kilo tomatoes 9 million dollars.

    Americans cannot make a simple refrigerator anymore, not even spoons and forks. – if getting crossed with china -> US will become salmonella capital in the world and James will start eating… fingers job…

    all it needs is for China to drop on the world market a trillion dollars worth of american bonds
    (that’s why most countries started trading in euro, instead of american $
    needs lots and lots of popcorn

    • suyts says:

      Well, that’s true. If China drops our bonds, others would be sure to follow. And then, as I described, our credit would be worthless.

      OTOH, China is having their own difficulties at the moment. Which is more popcorn eating material.

      Still, these should be lessons for all nations.

    • cdquarles says:

      :You’re wrong about that. We still make refrigerators and spoons and forks. They may not be end user consumer items, but we still make them: http://en.wikipedia.org/wiki/Maytag

      • cdquarles sais: ”We still make refrigerators and spoons and forks.

        you better double check; they might still sell spoons and forks – but where they are made? chinese eat with chopsticks, but make spoons for us

        australia doesn’t ”pretend” anymore of making fridges, spoons and forks plus, some washing machines are designed in the west, but are all are made in china.

        eating with fingers taste better anyway

        • cdquarles says:

          Refrigerators are made in Iowa, for consumers. The big industrial ones are made here, too. There are a number of metal foundries within an hour’s drive from me. I know that the US still makes things. Sure, most of the end user consumer commodity ones will be tagged made in Mexico/China/etc; but the machines that made them and/or parts to make them were made here and sent there for assembly.

        • kelly liddle says:

          Kelvinator or electrolux still makes fridges in Aus but they will shut the plants in 2016. There is also more than China out there, South East Asian countries are competitive with China.

        • Kelly, a month ago, I went in the 4 biggest shops in town – specifically asked for ”western made fridge” – I was laughed at. As if i need a part for repair in the future I explained – was explained that: western ”part” would cost more than a fridge made in china..,.

        • philjourdan says:

          Transportation costs. China is overland.

        • philjourdan says: ”Transportation costs. China is overland”

          Phil, I’m in Australia

        • philjourdan says:

          Oops! Sorry Stefan. They built that land bridge yet? 😉

        • cdquarles says:

          I went to the local Wal-Mart and bought some plastic spoons. The box is marked Made in USA. That isn’t necessarily proof … but I can find people who run plants in the USA that make plastic eating utensils

          Sorry to hear things are so rough in Australia; but I guess a US made refrigerator would have a price disadvantage compared to China. You’re a lot closer to China.

        • DirkH says:

          cdquarles says:
          March 30, 2014 at 12:08 pm
          “Sorry to hear things are so rough in Australia; but I guess a US made refrigerator would have a price disadvantage compared to China. You’re a lot closer to China.”

          Transporting the fridge on a 15,000 TEU container ship from China to Oz costs 10 cents; from USA to Oz 30 cents. Transporting it from the harbor on a truck to its destination inland costs 5 USD.

          Oceans are highways, not obstacles.

  3. tom0mason says:

    Matt Yglesias,
    President Robert Mugabe has taken it upon himself to seek you out, as you have displayed such a clear-minded understanding of how banking and finance works.
    President Mugabe wishes to appoint you to head the Reserve Bank. In a speech earlier today President Mugabe said of your appointment –
    “I am confident that Matt Yglesias will prove himself exceptionally talented for the post of head of the Reserve Bank Zimbabwe, he will take over duties from Gideon Gono immediately.”

    Note that the Reserve Bank’s most important role is to create and enact monetary policies. The Reserve Banks is the only producer of Zimbabwe’s bank notes and coins, it regulates the amount of money in circulation. The head of the Reserve Bank’s primary function is to remove all foreign currencies from domestic use.
    Everything else you need to know to successfully run the RBZ can be found here –
    http://en.wikipedia.org/wiki/Reserve_Bank_of_Zimbabwe

    • suyts says:

      And, people pay him to write about economics!!!!

      • tom0mason says:

        Fools employing an idiot? Sounds usual these days.

        His version of financial and banking macrame is wonderful to behold, but so too was the film “The Lion, The Witch and The Wardrobe” which of course reflected a real world situation, unlike Matt Yglesias and his theories.

      • philjourdan says:

        It is surprising that there are some people with less knowledge of economics than this idiot. But underestimating the intelligence of liberals is always a losing proposition. You are always going to be too high.

  4. DirkH says:

    Ban guns to drive the legal competition out of the market; then serve the illegal market at much better prices (for the illegal dealer).
    http://www.zerohedge.com/news/2014-03-27/gun-banning-ca-senator-busted-weapons-trafficking
    Democrat policy.

    • Jim Masterson says:

      It’s “standard” Democrat policy: “Do what I say, not what I do.”

      Jim

    • Dirk, they intend to confiscate arms from the american people – Russian television says: buy yourself weapons to keep home – you might need them in that one hour to protect yourself, before the police arrives. big readjustments on both places

  5. kim2ooo says:

    KARMA it’s a bi……….

  6. phodges says:

    An exponential increase in the money supply is a consequence of Debt Money. The scam is entirely be design, to enslave you. It is trivial that you will remain slaves of those who have the power to create money.

    • DirkH says:

      Got too crazy / ultrastatist at 32:00.

      The solution is not a “citizen dividend ” or some such bleeding heart liberal notion but allow competing currencies.

      • phodges says:

        Yes, I used to be a “free banking” advocate, then a commodity “hard money” advocate, and now i think I would accept at least a publicly controlled and debt free fiat credit for at least a national currency. Some combination of the above would be most dynamic.

        • DirkH says:

          Just allow all these solutions; and let the chips fall where they may. Just like I’m shifting assets between stocks, cash (Euros) and Gold. I do have losses due to capital gains taxes, which make the Euro the absolute measuring yard here, and that has to go if competing “currencies” are to be emancipated, but I’m basically already doing what I can to evade risk. If everyone does it on a daily basis, I think the collective risk would be minimized through the collective rational decisions of millions of actors. No central planned system can do any better.

  7. DirkH says:

    Tried to watch the Vox Yglesias video, hat to abort during the GE commercial as I’m low on bandwidth. (mobile)

    Funny how those leftards love working for Crony capitalist oligarchs.

  8. phodges says:

    Guess they never heard of Samuel Adams, Patrick Henry, Jefferson, Madison, et…

    Understanding Libertarian Morality: The Psychological Dispositions of Self-Identified Libertarians

    http://www.plosone.org/article/info:doi/10.1371/journal.pone.0042366

    Abstract

    Libertarians are an increasingly prominent ideological group in U.S. politics, yet they have been largely unstudied. Across 16 measures in a large web-based sample that included 11,994 self-identified libertarians, we sought to understand the moral and psychological characteristics of self-described libertarians. Based on an intuitionist view of moral judgment, we focused on the underlying affective and cognitive dispositions that accompany this unique worldview. Compared to self-identified liberals and conservatives, libertarians showed 1) stronger endorsement of individual liberty as their foremost guiding principle, and weaker endorsement of all other moral principles; 2) a relatively cerebral as opposed to emotional cognitive style; and 3) lower interdependence and social relatedness. As predicted by intuitionist theories concerning the origins of moral reasoning, libertarian values showed convergent relationships with libertarian emotional dispositions and social preferences. Our findings add to a growing recognition of the role of personality differences in the organization of political attitudes.

    • cdquarles says:

      I guess I’ll have to ask the authors for the raw data. A quick perusal of the paper revealed no glaring flaws.

  9. kelly liddle says:

    The statement in the video that “Debt is Not a Problem Now” is actually correct. As I have stated before many Americans believe that the US $ can never fall/fail. The problem comes when the debts become due so to speak and people both in the US and overseas change there mind about the security of the USD.

  10. Lars P. says:

    Lol, somebody else tried that already.
    Here is 100 trillion, you can pay your debt and keep the change:

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