Entangled thinking by Cullen Roche

Look at his post: CUT, CAP AND BALANCE = R.I.P. U.S.A.
He claims the Republicans strategy is a straitjacket for Washington DC and will end the growth potential of Washington DC, thus ending the USA.

Yes, but the correct name is restructuring the USA away and reforming the Regional Nations of America. Here is his screwed up quote:

With the US now running a current account deficit of 4% it is imperative that the government sector run a deficit in excess of 4% in order for the private sector to be able to save. If this were not the case, the private sector would be forced into deficit and the economy would contract.

No, the regional nations would carry debt to match their own deficits. As he says, regional nations are necessary if trade deficits need the offset.

We are unable to keep Washington DC as the center of government because technology has passed the concept of a DC into oblivion. Governments adapt and restructure. Our governments will contract and go through violence because elites think government should always remain the same. Like all Keynesians, he thinks government is the constant in their equations. So their theory partly works when there is debt capacity. When debt capacity has been used up, governments dissolve and restructure.

If Cullen or any other Keynesian wants to test my theory, there is a simple test. Propose to sell California 8 more Senators for $2 trillion. That is a good deal for California and they very well would break up the state, build a debt holding institution and form a regional nation for that gain.