Talking Point: ‘Mad Spending by Democrats Is Killing Us’
"Deficits"03/31/2009
This is the Republican monetary slogan. Yet we recall that they inherited a huge surplus from President Clinton, spent it all, and then put us into the highest level of debt in American history. They also ran our economy into the ground. They own this whole mess – after eight years of total Republican control of government they can’t fop it off. Yet they just forget that and point the finger at Democrats for deficit spending to fix their mess. Well, ‘our mess’ for we are the victims.
What do they mean by ‘It’s Killing Us?’
They mean that by inflating the money supply so much it is increasing our deficit and we will only have inflation to show for it -- just as we did when Daddy Bush was the Prez.
So how can we just run the printing presses and be satisfied? Isn’t there a day of reckoning ahead? Won’t we go into national bankruptcy if we keep this up?
The answers have to do with money supply, whether it is active by way of investment thus producing money velocity and adding to growth or whether we speak of money sitting stagnant in banks, un-loaned, not working, and not producing any value added component to increase our Gross Domestic Product (GDP).
There is a good discussion on this and more at the website link below.
It is a student’s view designed to teach about how money works and why it needs to be regulated. Explanations of how an economy works are nicely taught. Like all lectures it can make one sleepy. Yet to understand it is to be able to deal nicely with the GOP. For indeed the key is money supply and its addition and contraction as needed to regulate our economy. It’s the sort of the thing the Federal Reserve does on a regular basis.
Those who read this article will be rewarded with the ability to write well on this subject and to speak even more intelligently than the GOP who just repeat mantras provided by Newt Gingrich and other talking heads yet don’t understand what it is they are babbling about. Click HERE to read the article.
When you do read the article remember that it was written in December of 2008 and has proven amazingly accurate. The behavior of money is that way – it is amazingly predictable. That is why you can answer the GOP with confidence.