The Jefferson Tree - A platform for debate and discussion of current events and politics...

Stephen Moore’s Ridiculous Anti-Clean Energy Rant

Hard right-winger Stephen Moore took a break from pushing debunked trickle-down economic policies to take a pathetic shot at clean energy.  Let the stupid begin. …radical Greens, one of the most influential political forces in America today… Seriously?  He goes on to mention the famed Sierra Club as one of these forces.  And where did they rank in 2013 on lobbying: 755.  In fact, if we look at the top 50 interest groups giving to members of Congress this year, no sign ...

Anti-Israel Policies/Actions Is Not Anti-Semitsim

There have been growing protests in Europe against the mass murder of Palestinians in the Gaza Strip by the State of Israel. These actions are in response to the IDF killing 500 Muslims there with the vast majority of them being civilians. But what is troubling about these movements is, according to this article in the NYT, an anti-Semitic tinge has taken place at these protests. The story reads that in France: Several recent pro-Palestinian demonstrations in Paris have boiled over ...

Warren For President?

Today at the the annual Netroots Nation conference in Detroit, the nation’s largest gathering of liberal activists and organizers, Massachusetts Sen. Elizabeth Warren (D) reportedly drew an applause that Hillary could only dream of. According to NYT and Politico reports, Warren was a rock-star while Hillary Clinton, the likely Democratic candidate for President, was absent. Warren’s populist talking points and her history of taking Wall Street to task (remember that Warren was an early advocate for the creation of a new Consumer Financial ...

Social Protest Literatue at Sparking The Left

Here at STL we are starting a new feature. In between our political-insight posts, I will start publishing excerpts or entire pieces of great literature that speak to crucial social and political issues which span the centuries. Though almost all in the Western tradition, the subject matters are transcendental. Now first to name my source, I am taking pieces from Upton Sinclair’s selected and edited collection “The Cry for Justice: An Anthology of the Great Social Protest Literature of All Time.” ...

Pulitzer-Winning Journalist Detained for Being Undocumented

I was first brought aware of Jose Antonio Vargas’ story last week in a piece he penned in Politico. He explained that he was in the Rio Grande Valley, in the city of McAllen, just north of the Mexican border. He was there to see first hand the tens of thousands of undocumented children, most of them from Central America, and observe how they were being treated. The trip was also used for a news conference appearance and vigil organized by United We Dream, ...

GOP Refuses Funding for Border Children Projects

A humanitarian crisis unseen before at our borders is becoming more and more urgent everyday at Rio Grande Valley, TX, and other Southwest locations. And yet the GOP is arguing over numbers. Yesterday President Obama requested an amount of $3.7 billion from Congress to help aid the 57,000 unaccompanied minors who illegally crossed the border from the Mexico side since October. They are mostly from violence-ridden Central American countries, like El Salvador, Guatemala, and Honduras (Honduras has the world’s highest murder ...

Problems galore for the new government headed by Mr. Narendra Modi in New Delhi – Imperative for the first time PM and his council of ministers in governance amidst multiple challenges

The phenomenal victory for Mr. Narendra Modi and his party (the BJP) in May 2014 general elections has not only drawn the adulation of people world over but also silenced all its die hard critics at home and abroad. It was so stupendous and stunning that even the American government and its top leaders across party lines acknowledged Mr. Modi as the emerging democratic leader of the world, setting aside their past antagonism as an error of judgment, not based ...

Embarrassing Weekend for NSA and CIA Good for Democracy

U.S. intelligence took a couple of pretty hard slaps in its face this past weekend and, when reading the articles about their wasteful and ridiculous actions, the slaps were clearly justified. First off, it was announced on Friday that Germany had arrested a man accused of spying for the United States and passing on the details of a German parliamentary committee’s investigation.  It’s pretty disgraceful that the U.S. is spending taxpayer dollars to buy spies so we can know about an ...

Has Putin Over Reached Once Too Often?

My, oh my.  We've watched this man make mince meat of Obama over the past several years.  Each time you could see the smirk broaden and the swagger get more pronounced. He and his allies - Iran, China, Syria and North Korea were truly enjoying themselves. But as happens with a lot of bullies, they get over confident and suddenly everything around them collapses. I'm wondering if this is the case with the downing of the Malaysian passenger jet. With the death ...

If Only It WERE The Heat!

What a day.  A passenger plane has been shot down over Ukraine uncomfortably close to the Russian border. Hamas reneged on the humanitarian cease fire so Israel launched their ground offensive. Children still pour across the border while Congress dithers. It's now being reported parents are giving them birth control in case they are raped during the journey. Along that line former member of Congress, Todd Aiken, who once talked about legitimate rape and the idea that women's bodies protected them from becoming ...

Hannity's Histrionics

For a person who doesn't have much faith in the intellect of pundits, I wonder why I watch them so often.  I wonder even more why the cable outlets and networks that employ them don't take more care in who they hire. Many of them get on crusades that bear no resemblance to reality.  Sean Hannity is one of the most prominent. The night before last  he was on his Bowe Bergdahl kick demanding to know why he was returned to ...

Do Actions Speak Louder Than Words?

If the President could run away from the border mess any faster I'm sure he would. It's being said it's because being seen in the setting of kids crammed into confined spaces with their scabies and lice would reflect badly on him.  It could even be his Katrina.  Well, maybe.  But who's fault is that? It goes to show his handlers aren't as smart as they think they are.  For one, drinking beer and shooting pool in Colorado, a state where ...

The Kids Always Went Home

Watching the immigration mess going full bore brought to mind a lot of things that have involved children from other nations.  The first thing that comes to mind is the Disney song It's a Small World After All that speaks to all we have in common. Hopes, dreams, all the warm fuzzy stuff. We've had exchange student programs where a student from another country lives with a local family to learn not only academics but what life in American and Americans ...

The Militia Is Coming, The Militia Is Coming!

That's all we need! News has it a call has gone out for militia, both unarmed and armed, to gather along the border to help private land owners protect their property in something called Operation Save Our Borders.  Terrific! Remember how well it went when militia turned out to help to  help Cliven Bundy in his fight over Federal grazing rights in Nevada?  It came within a hair's breadth of turning violent. I really feel for the border towns who are the ...

Will Cheney Help Or Hurt The Republicans In The Mid-Terms?

Will the re-emergence of Dick Cheney help or hurt the Republicans in the mid-terms?  There is so much going on about which voters are rightfully incensed my guess he will have little impact. I think it depends, however, on what happens in the middle east over the next couple of months. Those who believe it wouldn't be in the mess it is if it weren't for the Bush/Cheney policies and rush to war will be reminded of just that - the ...

So Sue Me

I often wonder these days how our country is going to survive the remainder of Obama's term.  Whether or not you agree with the Supreme Court decisions, they have been made never-the-less and the President has been slapped down on many occasions.  Sometimes unanimously. So why, I wonder, has the President decided to continue his mantra of it's my way or the highway.  He complains endlessly about the Republicans refusal to work with him.  House Speaker Boehner explains one reason is ...

Where the principle of difference [between political parties] is as substantial and as strongly pronounced as between the republicans and the monocrats of our country, I hold it as honorable to take a firm and decided part and as immoral to pursue a middle line, as between the parties of honest men and rogues, into which every country is divided. Thomas Jefferson
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Ralph Musgrave - Ralphanomics

Low interest rates make this a good time to do infrastructure investments?????

The above crass idea is promoted by many in high places: for example The Economist, the U.S. Treasury, Brad DeLong and Larry Summers.

The first and obvious flaw in the above argument is that infrastructure investments last for DECADES. And there is no reason to suppose that current low interest rates will last that long. Doh!

Second, a monetarily sovereign government does not need to borrow, since it has the power to print. So never mind interest rates being LOW: such a government can obtain money at NO COST AT ALL!!!!!

So would it make sense for government in a recession to fund infrastructure investments with freshly printed money? The answer is “no”: because in order to best allocate resources as between investment goods and consumer goods, some sort of FREE MARKET rate of interest should be debited to the relevant investment – not the artificially low rates at which government can come by money.

In fact it has long been recognised by the economically literate that even when a country is NOT IN A RECESSION, government should not calculate the merits on investment projects on the basis of what it costs government to borrow. Reason is that government has an unfair advantage when it comes to borrowing: it is an ultra credit worthy borrower on account of its ability to extract money by FORCE from the population.

I dare say the Italian Mafia can borrow at relatively low interest rates and for similar reasons. That does not mean that investments made by the Italian Mafia are particularly clever or worthwhile.

In a recession, the conventional wisdom is that governments should cut interest rates. Why on Earth investment goods should suddenly become more worthwhile relative to consumer goods just because there is a recession is a mystery. In fact the whole idea is a load of codswallop. That is, there is no good reason to boost investment spending rather than consumption spending in a recession.

Ralph Musgrave - Ralphanomics

Author: Ralph Musgrave - Ralphanomics

I wrote a book on unemployment recently with James Galbraith, and others. Galbraith is one of Obama's economic advisers. I love the different cultures that exist in this world. I took an interest in them long before the daft word 'multiculturalism' was widely used. I want to see these cultures preserved. I want to see Tibet staying Tibetan, and Britain staying British.

1 comment to Low interest rates make this a good time to do infrastructure investments?????

  • Thank you, a breath of fresh air
    The reality is that low interest rates or not, virtually all governments at every level are already over financed and are carrying insane amounts of debt. While interest rates may be low today, God help us all if in the longer term they double, triple, or ever once again hit double digit. The extra carrying charges (interest) would leave government scurrying for ways to make up the difference, cut services or raise revenues.

    When will people learn you can not spend your way out of debt?

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