"It is easy to confuse what is with what ought to be, especially when what is has worked out in your favor."
- Tyrion Lannister

"Lannister. Baratheon. Stark. Tyrell. They're all just spokes on a wheel. This one's on top, then that's ones on top and on and on it spins, crushing those on the ground. I'm not going to stop the wheel. I'm going to break the wheel."

- Daenerys Targaryen


"The Lord of Light wants his enemies burned. The Drowned God wants them drowned. Why are all the gods such vicious cunts? Where's the God of Tits and Wine?"

- Tyrion Lannister


"The common people pray for rain, healthy children, and a summer that never ends. It is no matter to them if the high lords play their game of thrones, so long as they are left in peace. They never are."

- Jorah Mormont


"These bad people are what I'm good at. Out talking them. Out thinking them."

- Tyrion Lannister


"What happened? I think fundamentals were trumped by mechanics and, to a lesser extent, by demographics."

- Michael Barone

"If you want to know what God thinks of money, just look at the people he gave it to."
- Dorothy Parker

Sunday, November 06, 2011

WAPO Book Section Reviews Michael Brown on Disaster Relief and Bill Clinton on the Economy by Dean Baker

Given where we are today, Bill Clinton should be the second to the last person in the world (after Alan Greenspan) to be offering advice on the economy. During his presidency he set in motion the forces that led to the economic disaster that we are living through today.
Clinton gloried in the stock market bubble that led to a massive consumption boom (i.e. discouraged savings). News Flash! Bubbles burst, and the collapse of the stock market bubble gave us the recession in 2001. In terms of job creation, this was at the time the worst hit to the economy since the Great Depression. We didn't pass the pre-recession level of employment until February of 2005.
The other part of this mix was the massive trade deficit created by the Rubin-Clinton high dollar policy. The value of the dollar is the overwhelming determinant of the trade balance. The trade agreements and "competitiveness policies" that DC-types spend all their time on don't amount to a hill of beans by comparison.
By saddling the country with an over-valued dollar, Clinton guaranteed a large trade deficit. This trade deficit in turn guaranteed that we would have either large budget deficits or negative private savings. We had the latter in a big way in 2004-2007 with near zero household savings and a bubble driven building boom. And now we are living with the fallout.
Of course President Bush cannot escape blame since he had plenty of opportunity to turn the economy from this course and instead looked the other way. However it is remarkable that the Post could review Bill Clinton's book without ever noted the disastrous outcome from policies he promoted while in office. Undoubtedly Michael Brown looks forward to the Post's review of his book. Heckuva job Post!

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