“For the state to absorb $700 million per week ... would create a burden the likes which even a state as large as California can never absorb without, again, massive cuts to important services,” Newsom said in a news briefing.
We have another case of fraud among the Keynesians. The Keynesians need to identify who pays the seigniorage tax now that the dollar is back to trend. The Keynesians will not do this, but other authors have:
This paper incorporates a bubble term in the standard FTPL equation to explain why countries with persistently negative primary surpluses can have a positively valued currency and low inflation. It also provides an example with closed-form solutions in which idiosyncratic risk on capital returns depresses the interest rate on government bonds below the economy's growth rate.
We we have a huger gap ibn economic research and these authors are working this issue:
Brunnermeier, Markus K., Sebastian Merkel, and Yuliy Sannikov. “The Fiscal Theory of the Price Level with a Bubble”.Why are the pundits listening to Krugman, he is not doing the work, he is collecting pundit clicks. Why should we listen to UC Berkeley economists? They are not doing the work. In fact, I perfectly expect this Keynesians fraud to continue.
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