Jumat, 25 Februari 2011

Krugman Gets It Right and the Importance of Speeches

Krugman today on the Gov. Walker's proposition:
And then there’s this: “Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state-owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3) (b).”
We can all guess who will get the no-bid contract.

While most political speeches are as entertaining as watching wet paint dry (probably less so), some can have a real impact.  Peggy Noonan explains:
Look what happened a year ago to a Wisconsin businessman named Ron Johnson. He was thinking of running for the Senate against an incumbent, Democratic heavy-hitter Russ Feingold. He started making speeches talking about his conception of freedom. They were serious, sober, and not sound-bitey at all. A conservative radio host named Charlie Sykes got hold of a speech Mr. Johnson gave at a Lincoln Day dinner in Oshkosh. He liked it and read it aloud on his show for 20 minutes. A speech! The audience listened and loved it. A man called in and said, “Yes, yes, yes!” Another said, “I have to agree with everything that guy said.” Mr. Johnson decided to run because of that reaction, and in November he won. This week he said, “The reason I’m a U.S. senator is because Charlie Sykes did that.” But the reason Mr. Sykes did it is that Mr. Johnson made a serious speech.
Did You know that China no longer is the major owner of U.S. debt? Let's take a look at the Fed balance sheet:
Instead of owing the majority of government debt to a foreign country we now owe it to......ourselves?  Oh well, it's not like the Fed monetizes our debt or anything...
Just wait till the Fed starts pushing the banks to buy municipal bonds to mask it monetizing their debt as well.

Tidak ada komentar:

Posting Komentar