What does it say about our society when the leading Big Government Spending Keynsian Economist in the nation gets into a beef with a late night comedian who hosts a fake "News" show? In case you missed it, The Daily Show host Jon Stewart is trading barbs with Princeton Professor and New York Times colmunist Paul Krugman--excuse me DOCTOR Paul Krugman (he didn't go to Evil Economist School for eight years to be called MISTER) over Krugman's proposal to mint a ONE TRILLION DOLLAR COIN to circumvent the debt ceiling.
Stewart says Krugman is just "Making (expletive) up"--while Krugman calls Stewart "lazy" and showing a "lack of professionalism" in not researching the idea. Does Krugman realize that Stewart ISN'T A REAL JOURNALIST?!?!?! And that the Daily Show ISN'T A REAL NEWS PROGRAM?!?!?!? Actually, Krugman does realize that in today's era of the Uninformed Voter, The Daily Show and the Colbert Report do serve as CREDIBLE NEWS OUTLETS for many young people--and if they fail to advance the liberal agenda--that hurts "the cause".
Now let's take a real look at this trillion dollar coin idea. Under the Keynsian principle of "the Government can never spend enough" it make perfect sense. US currency is no longer backed by anything tangible like gold or silver--just the word of the US Treasury to make good on its debts. So as Jon Stewart points out, you could print a 50-QUERTILLION DOLLAR bill--and it would be worth 50-quertillion dollars. Plus, the minting of the trillion dollar coin advances the effort to undercut the effects of the deficit by simply devaluing the money that is actually owed.
And that aspect plays right into the Liberal Agenda. Make everything worth less (not quite worthless) so that those who "have" move close to those that "have not". Those in the middle and the upper ends of the economy gained our worth by work, production and investment--what's known as "creating wealth". But if the Government is able to flood the lower end of the economy with money fresh off the printer (think Stimulus I and II) and backed with nothing more than debt, the wealth of the middle and the top end (along with that which we could build in the future) is devalued--and suddenly, we aren't so far ahead anymore. Notice that no one actually moves ahead, the majority just slip back toward the bottom.
And it's not just monetary policy that we are talking about when it comes to devaluation. Who is it that wants to devalue a college education by demanding that everybody get one--at no cost? Everyone likes to point to the studies that show those with bachelors degrees make a million dollars more over their lifetimes than those without--but if everyone has a BS or a BA, it won't mean that everyone suddenly gets bumped up to the salary those with degrees currently make. It is the scarcity of the education that creates the demand--and the higher wage.
Who is it that wanted to devalue home ownership by requiring lenders to approve mortgages for people with no means to pay for them? Home values were solid in the past not because everyone could afford to buy them--but because those who bought them could actually afford to stay in them. And "old-fashioned" mortgage lending standards (20% down--payments no more than 25% of PROVEN gross monthly pay) ensured foreclosure was a rare event.
I'm sorry that Jon Stewart is calling BS on the latest Liberal/Keynsian effort to further devalue our economy--therby irritating those who want to drag us further in the hole. But even the tamest lapdog will bite the hand that feeds him occasionally.