McCulley on the Economy

Here is an interview with Paul McCulley that looks at the economy. At 5:00 he explains "The Paradox of Thrift" which is the reason why the federal government needs to run a deficit right now to fill in the missing spending. Sadly, the Republicans and Obama live in lala land and ignore economics and reality and are busy implementing austerity in the hope of "resuscitating" the economy, but this will kill jobs and kill the economy:


At 7:20 McCulley points out that Washington has fallen in love with Herbert Hoover's Secretary of the Treasury, Andrew Mellon, famous for:

...liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate… it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people.