Tag Archive: L. Randall Wray

Apr 24 2013

The Reinhart and Rogoff Errors Discredit the Obama Administration and Austerity

Yes they do. I have heard a statement that bugs me a lot lately and that statement is that this was the go to analysis for the Republicans as if Democrats have never referred to it in any way. I’m here to say that is complete BS and we know this now. The Sequester created by the WH and passed in a bipartisan way, was based on Reinhart and Rogoff’s BS analysis about scary scary long term debt to GDP ratios like their offer to cut Social Security.

So let’s stop pretending this is only coming from Republicans, especially with the Obama administration using deficit lies and errors to come after Social Security. Reinhart and Rogoff’s complete methodology was BS and neither of them understand the nuanced difference between countries with a sovereign currency; fixed exchange rates and floating exchange rates; gold standard countries and those with a fiat currency and how that relates to reserve banking at the Fed and our private current account and trade balance within. So therefore it skews the mean and amounts to garbage methodology even if done correctly.

I love How Mike Norman puts it. It kind of reminds me of how I would say it; those of you that are familiar with my work.

There’s a solid account tying the Obama administration directly to the work of Reinhart and Rogoff. You will learn more about this below the fold.

Mar 27 2013

Protecting Social Security from Inaccurate Accounting with an Agenda

I was asked to contribute to the Daily Kos Social Security blogathon today to draw attention to the neoliberal attack on it. I hope you visit and like my contribution.

I have referenced this before, but there hasn’t really been enough of a movement on the this issue, and it’s an important one. It’s specifically important right now when Washington DC is completely stuck on stupid in a self created crisis. This crisis started in 2010 when the debt ceiling was not secured in the Bush tax cut deal with Republicans by President Obama and Senate Majority Leader Harry Reid. Many of us predicted it would lead to the debt ceiling debacle in 2011 which in turn led to the fiscal cliff negotiations and the sequester that is now a reality.

However, it could end anytime with House Democratic Representative John Conyer’s bill to just repeal the sequester; that is, if he got proper support. I think that needs to be a goal along with forever protecting Social Security from neoliberal economics and the politicians that support it. After all, this sequester was a conscious bipartisan decision on their part to put Social Security in danger now that a 130 billion net cut within the chained(superlative) CPI is now on the White House’s website in its proposal to stand in place of the sequester.

What we are hearing to justify it are not only exaggerations and lies about Social Security being unsustainable, those lies are based on inaccurate accounting standards that have pervaded our entire government; the CBO, and yes, even the Social Security Trustees Board itself at times over the years. Let’s face it; the Social Security Trustees Board has a broad history of being overly pessimistic.