Monday, January 6, 2014

Helping out RA Free Exchange

RA is trying to understand the secstags problem
The most important point to make here is that this discussion needs a little more clarity. Mr Summers is worried about low long-term rates. If he also thinks that appropriately stimulative monetary policy would be bad for society, he should say that explicitly.

We have secstags because multipliers are less than one in DC, and DC owns the fiat banker. That is why we borrow from Chinese housewives, the middle class here in America is to smart to loan the idiots in DC money. DC could care less, eventually the middle class ends up paying for bad multipliers anyway.

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