{"id":9342,"date":"2015-06-23T06:07:39","date_gmt":"2015-06-23T11:07:39","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9342"},"modified":"2015-06-23T06:07:39","modified_gmt":"2015-06-23T11:07:39","slug":"alexis-tsipras-angel-of-mercy-or-trusty-of-the-keynesian-central-bankers-debt-prison","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9342","title":{"rendered":"Alexis Tsipras\u2014-Angel Of Mercy Or \u201cTrusty\u201d Of The Keynesian Central Bankers\u2019 Debt Prison?"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/davidstockmanscontracorner.com\/alexis-tsipras-angel-of-mercy-or-trusty-of-the-keynesian-central-bankers-debtors-prison\/\" target=\"_blank\">Alexis Tsipras\u2014-Angel Of Mercy Or \u201cTrusty\u201d Of The Keynesian Central Bankers\u2019 Debt Prison?<\/a><\/h3>\n<p>Greece, Europe and the world are being crucified on a cross of Keynesian central banking.\u00a0The\u00a0latter\u2019s two-decade long\u00a0deluge of money printing and ZIRP has\u00a0generated a fantastic worldwide\u00a0financial bubble,\u00a0and one\u00a0which has accrued to\u00a0just\u00a0a tiny slice of mankind. That much\u00a0is blindingly evident, but there\u2019s more and it\u2019s worse.<\/p>\n<p>The present replay of high noon on Greece\u2019s impossible mountain of debt clarifies an even greater evil. Namely, that the\u00a0central bank printing presses\u00a0have also\u00a0utterly destroyed the fundamental requisite of\u00a0fiscal democracy.<\/p>\n<p><em><strong>To wit, in the modern\u00a0world of massive, interventionist\u00a0welfare states, fiscal governance desperately\u00a0needs an honest bond market.\u00a0<\/strong><\/em>The latter\u00a0is\u00a0the only mechanism capable of taming the modern state\u2019s primal\u00a0urge to entitle, transfer, indulge, placate,\u00a0subsidize and spend without the parallel pain of a\u00a0commensurate burden of\u00a0taxation.<\/p>\n<p>Soaring bond yields and the fear of losing debt\u00a0market access, therefore, are the one force that can cause the politicians, thieves and charlatans who man the machinery of democracy to sober-up and\u00a0acknowledge the facts; and then to weigh the difficult options and tradeoffs, congeal a consensus and close the deal.<\/p>\n<p>This proposition is\u00a0based on experience, not theory\u2014\u2014even though the logic of bond market discipline is unassailable. Approximately 33-years ago, in fact, I was part of a small group of White House staff who talked Ronald Reagan into the impossible.\u00a0That is, into signing not only a\u00a0giant tax increase bill at the dark bottom of the 1982 recession, but to actually\u00a0embrace several more\u00a0such measures over the course of the subsequent three years. When the dust settled, these so-called \u201ctax grabs\u201d\u00a0 took back fully 40% of his cherished and sweeping\u00a01981 tax reduction.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alexis Tsipras\u2014-Angel Of Mercy Or \u201cTrusty\u201d Of The Keynesian Central Bankers\u2019 Debt Prison? Greece, Europe and the world are being crucified on a cross of Keynesian central banking.\u00a0The\u00a0latter\u2019s two-decade long\u00a0deluge of money printing and ZIRP has\u00a0generated a fantastic worldwide\u00a0financial bubble,\u00a0and one\u00a0which has accrued to\u00a0just\u00a0a tiny slice of mankind. That much\u00a0is blindingly evident, but there\u2019s more [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2872,3832,195,279,284,1167,467,2525,1939],"class_list":["post-9342","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alexis-tsipras","tag-central-bankers","tag-debt","tag-eu","tag-european-union","tag-greece","tag-keynesian-economics","tag-welfare-state","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9342"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9342\/revisions"}],"predecessor-version":[{"id":9343,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9342\/revisions\/9343"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}