Stop Me Before I Vote Again

Op-san, what say you about the fact that a 10% annual deficit is merely keeping recession from dropping the rope and going deeper? Seems like it's pretty excellent evidence for the labor theory of value, as the only part that seems to be working is the 1/4 of the package devoted to buying stuff rather than giving Geithner a boner.

md

i'm a bit off my feed from your question
since i've been such a johnny one note on this

the program we are on
is "stagnation till further notice"
means
artificial job famine and jobbler credit drought
produced by precisely one half the deficit we need now to "recover"

we're in what the levy institute dubbed a "contained depression"

what would be recovery ??
a move back to 5% unemployment in 6 quarters or so from point of touch down
translation
5% unemployment by this time next year
yes 5 not 11 or 12%

back story:
basically
once the powers in the towers
back in the carter reagan contr temps
suddenly realized
there was a sweet spot myth
to exploit called nairu
their program for macro america was clear
nairu??
the non accelerating rate of unemployment
keep us at least with an unemployment rate above nairu and presto no wage price spirals...

what is nairu ??
well its something we ought not cross so we ought not find out
just stay north of it unemployment wise

of course the pangloss brigade have provided estimates
always conmfortably morphic

only once in the last 25 years
did the fed allow us to cross
our sepectral consensus taboo line
and that was ....of course
during der clintonisher wunderzeit
-- aka clinton II --

right now the nairu gimmick is on hold of course
now the trollocrats are aiming to reduce amerika's balance of payments problem
-- bad bop --
by slowing job household import demand
and hoping exports hold up
ie intentionally stagnating the system

why ??

well... to correct the BOP properly
and precisely would require
a signifigant dollar drop
contra the currencies of east asia
and the sand oiler states

not gonna happen

why ?
same old same old
since the dollar broke her gold bracelets
back in 73

we could devalue but that would be wrong
why ??
think thru the capital export advantages
of an over valued dollar
over valued that is
against the existing ever changing
economic south hemisphere
of emerging trading partners

and as i never fail to note...
look at
the trans nat cross oceans
profit slurry we've buuilt
while wiping out our norte amigo
industrial base stage by stage
over the past 30 years

man has THAT been a very lucrative enterprise

recall the cycle we buy stuff with over valued dollars
and the southerners send us back the dollars
un discounted by conversion
in exchange for our costless debt paper
we pay em a low return
and we use the recycled still over valued dollars for another loop thru

but like all good things
it must proceed in an orderly fashion

this best not get confused with the zig zags of inter north forex moves
where the dollar takes signifigant zigs back toward a lower value like post the plaza accords
and the decades long elevation of a south currency to north status
the yen 73-96
and prolly eventually the rmb

but the destructive up zigs
always always dominate the brief down zags
in the long arch of policy toward our ever evolving roster
of southern "partners"' currencies

if this is all very old hat
to you folks

and it ought to be given my one noting act
ask your indulgence
if just one newbe gets this as insight
my mother will pray for them

btw
talking aboput orderly process always reminds me of my change machine gimmick back at everglades amusement college

i tapped the dollar changer every evening for a free burger ..possible two if i had
what only i could imagine to be
an empty belly

then some yahoo figured out my trick

--hint it involved a perfectly timed tap
which caused the mechanism to make change and return the dollar

of course
the word spread quickly

soon brooms were introduced and in one night
my gig was bashed to flinders

none of that for our stagmeisters here

we need a sweating time so to speak
no burgers for u !!!!

"..excellent evidence for the labor theory of value .."

i think i know what that is ...but

".. the only part that seems to be working is the 1/4 of the package devoted to buying stuff rather than giving Geithner a boner"

you soar well above my head here brother dawson

it indeed vindicates the recovery value of hundreds of billions
in fiscal deficit spending
versus the banks zero output effect
by heisting "pretend trillions "
thur phoney priced buy outs
and iron bucket guarantees
from our dear uncle fednik

Ggraph of price kinematics as unemplyment varies
not rapid rise point
and rapid fall point

^ rate of change of inflation rate
l
l A
l (
l (
l (_________
l )
l )
l )
0 l l l l l l l > existing unemployment rate
--note the line between
the flexions might have a mild slope--

graph of nairu knife edge
nice for scare stories
(
(
(__
)
)
)

"the capital export advantages
of an over valued dollar..."

Thanks, OP. I was still in the cave on that issue, wondering how BOP could ever stabilize without a manufacturing sector to sell goods abroad. Also fearing inflation as the dollar collapsed following everyone's predictions today.

smiff's gyro gear loose of a
kitchen table thread and thimble
meme presser of a comment systemic

squooze my graph into infantile gibberish
quite emblematic i must say

but imagine your owen
as
yosemite sam here

http://www.yosemitescouting.org/images/Yosemite%20Sam.bmp

the ricardo model of comparative advantage
has more baring
then his shape as a dayton tack
labor only
exchange value theory

suffice it to say
relative prices are the basis
for exchange in a fully integrated open market system
since ratios of product exchange quantities
ie implied barter rates
are all that matter
this implies
something wonderous
if all productive factors stay put where they are
no matter the variation in absolute real output productivity of those factors
exchange will be balanced and win win
for every region
fine eh

but that's only so long as the regions don't have seperate currencies
enter seperate currncies and by fiddling with exchange rates you can "reintroduce" absolute advantages
of essentially an coherent pattern you desire

what has emerged once various currency regions begin to trade among themselves
is a pattern of undervalued
economic south currencies and over valued economic north currencies
ie
north = developed
south = developing

the result capital flows south and back north
while products ultimately after a period of
machine transfers only flows north

buy cheap sell dear
simple really
as the great mage marshall brodien
use to say
.....once you now the secret

http://www.magicautographs.com/images/271_brodien_marshall_1.jpg

the great winners ??
those scooping the bulk of the exappropriated
"value" gain from trade ??

why the trans nat corporations that dwell in the pores of exchange
and btw are not in any serious academic models of international trade

as paul nobel krugvitz will atest
--you find the fuckin link bub---

limited liability free range laputa outfits
the ghost raiders of the earthly mehrvert
scramblekrieg

okay ....

http://krugman.blogs.nytimes.com/2009/10/12/an-institutional-economics-prize/

"Neoclassical economics basically assumes that the units of economic decision-making are a given, and focuses on how they interact in markets."

lovely eh ...ignore the profiteer
operating unseen behind the algebraic abstraction

"..(neoclassical theory).. is not much good at explaining ....in particular, why some activities are carried out by large corporations, while others aren’t. "
my my

"That’s obviously an interesting question," and in many cases an important one."

doctor karl is winking at us
from the otherside right about here

but to my citation:

"For example, in my own home field of international trade, the basic models don’t assign any particular role to multinational corporations.."
voila !!!

" how do we get them into the story, and what difference do they make?"

indeed pauli boy

and what a difference they do make eh !!!