requested financial bailout ~ magnitude 12
u.s. federal fiscal debt ~ magnitude 13
u.s. economy 2007 ~ magnitude 13
world econ 2007 ~ mag 13.5
$1b = magnitude 9
.
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as long
as foreigners have
a lot of confidence in our
ability to solve our problems we
can borrow the $1 trillion or $2 trillion
we need to solve it. the real constraint is not a
bookkepping one. it is a sense of faith on
the part of foreigners that the u.s
government will repay its
debt. our most
precious
asset
is that credibility
kenneth rogoff / economics faculty: harvard
nyt 9.30.08 "treasury and the fed looking at options after failure of bill"

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liquid-shock.kse.jpg
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foreign investment in $-denominated securities:
capital-inflow.jpg
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u.s. federal spending & revenues relative to dgp:
..
reagonomics.spending-revenues.jpg
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j m keynes / general theory of employment interest and money, 1936:

keynes.general-theory.quote.jpg
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w obama and mccain a pair of empty suits
and palin dumbed down as the san diego state u bookstore
don't expect to hear how a financial transaction tax considered by keynes
and fleshed out by economist james tobin in the 70s specialized to forex transactions
could provide a progressive mechanism to handle if not this then future bubble crash bailouts
. . .
because of the sheer volume of financial transactions - eg the unregulated credit default swap
market is estimated at $60t or magnitude-13.5, a rate below 1% may render fed
income and corporate taxes unnecessary. no taxes on profits
savings, investments, assets, payroll, property
inheritance, goods, services
/ all graphics: nyt