Thread by @RickSmithShow

Matías Vernengo: The Fed may say they want a soft landing & not cause a recession, but it looks bad on the Fed if they appear to be weak on inflation. I think Repubs want chaos.
@NakedKeynes @BucknellU

Matías Vernengo: If the Fed didn't already cause a recession, housing prices may throw us in a recession. If we dodge that bullet, then I think Repubs will want to throw us in a recession & it would be political.
@NakedKeynes @BucknellU

Rick: I think some members of Congress are like the kids you tell not to touch the hot stove--they have to touch it to see what happens. They may have to learn the hard way what happens if they don't raise the debt ceiling.
#RickShow

Matías Vernengo: If we don't raise the debt ceiling, the economy collapses. See Argentina & Greece. This is not fun--these people are crazy to tempt it. The size of the US gov't is tremendous; imagine if we'd default on our loans.
@NakedKeynes @BucknellU

Matías Vernengo: We can extend Social Security taxes to people who make more money.
Rick: That'll never happen.
@NakedKeynes @BucknellU

Matías Vernengo: Using debt to build infrastructure is a good idea, where you're creating jobs for people--that'll eventually pay back the debt.
@NakedKeynes @BucknellU

Matías Vernengo: Biden is right in saying we shouldn't negotiate. [debt ceiling] There's no reason to do that.
Rick: Everyone's blaming Joe Biden, but we're coming out of a pandemic. It's like when we came out of WWII.
@NakedKeynes @BucknellU

Matías Vernengo: The annualized inflation over the last 6 months is gone, even if we aren't feeling it yet. If *I* know this, you know the Fed knows it.
@NakedKeynes @BucknellU

Matías Vernengo: Inflation is only bad because it hurts the people at the very bottom who make low wages, so raise their wages.
@NakedKeynes @BucknellU

Matías Vernengo: Society is complicated. Sometimes you don't just want to be doing well, you want to be doing better than the other guy.
@NakedKeynes @BucknellU

Matías Vernengo: Even if they allow for a default or a shutdown of the gov't, I don't think we can live 15 yrs below the GDP. I think clearer heads in Congress will prevail. It may have implications for the election in 2024.
@NakedKeynes @BucknellU

Check out Matías Vernengo's writings at
nakedkeynesianism.blogspot.com
@NakedKeynes @BucknellU