Title this: Larry Summers finds an ally in Wolfgang Schäuble?
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A promising approach for Brussels to take would be a eurozone debt redemption pact, similar to the sinking funds devised by Robert Walpole and Alexander Hamilton. As the first Treasury secretary, Hamilton obliged the new US states in 1792 to deposit good collateral, practise budgetary discipline and reduce their debts. That was the crux of the oft-cited “Hamilton moment”, not the mutualisation of debts sometimes recommended for the EU.
The debt redemption plan worked and could work again today. It provides a mixed strategy of “carrots and sticks” like that pursued by the IMF — another legacy of Keynes. I am confident that Europe will be wise enough to also follow the British economist in this aspect of his doctrine.
https://www.ft.com/content/640d084b-7b13-4555-ba00-734f6daed078
Robert Walpole , Alexander Hamilton and just a ‘soupçon of Keynes’. Who could cavil at such a stellar casting for Mr. Schäuble’s political/economic melodrama. This reader is reminded of Richard Brinsley Sheridan’s ‘The Critic: or, a Tragedy Rehearsed is a satire’.
Political Observer
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My reply to FDDB:
The apologetics for the ‘Free Market’, that inconveniently Crashed in 2008 from Greed exercised exponentially: should that be placed under the rubric of ‘doing no wrong’. Or does my comment fall under ‘public vitriol’ ?
What is interesting about the Cult of Smith is that his intention with his ‘Theory of Moral Sentiments’ and ‘Wealth’ was to construct a ‘Science of Man’ with the aid of Hume. And that Marx, no matter his ‘failed project’ , not to speak of his writing for Capitalist Newspapers that employed him, all this a mere sketch. That eventuated in Keynes and his project to save Capitalism, while he played ‘The Market’ from his bed. And published The Economic Consequences of the Peace. The utter complexity of Economics, from its Political Economy to the Science, held afloat by data and models, that simply acts as reinforcement of that Political Economy. And its particular metaphysical constructs like ‘The Free Market’ which has proven to be based on acts of faith of Hayek/Mises/Friedman and its College of Cardinals, The Mont Pelerin Society.
StephenKMackSD
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