Re: [gang8] Re: End of the Business Cycle?

["Schulte-baeuminghaus" <schulte.baeuminghaus@xxxxxxxxx>]

Henry and I sometimes become foolishly emotional about our mostly rhetorical
differences, but the policy program below is the most sensible and
perceptive, specific and at the same time comprehensive, as
well as the most succinct I have seen in a long, long time.
I can steal some perhaps reflected glory in that it is very like the
approach
advocated - but with freedom for modification - in Victory Over Want.
However, Henry's proposal has, I am sure, been borrowed from no one, is
certainly his own, it stands - and stands
tall - by itself and is worthy of the most serious consideration within
Gang8, PKT  - and way, way beyond.
I wish my own - Australian - Government would see the light, after all the
long, long years in darkness.
Unfortunately, that is a prospect that is as dim as that 2003 will be any
better for the world economy than 2002 - or indeed, that it will even be as
good.


James Cumes
http://VictoryOverWant.org
http://crystaldreamspub.com/bios/authors/A-E/cumes_j.htm
http://www.onlineopinion.com.au/2002/Oct02/Cumes.htm


----- Original Message -----
From: "Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>
To: "pdavidso" <pdavidso@xxxxxxx>; <pkt@xxxxxxxxxxxxxxxx>;
<gang8@xxxxxxxxxxxxxxx>
Sent: Thursday, December 19, 2002 4:44 AM
Subject: [gang8] Re: End of the Business Cycle?


> I would think that a PK influenced CEA would advocate a policy towards
domestic
> economic development with massive government credit for infrastucture,
> restructuring and regulating of transportation, communication, national
health
> care, mutualization of insurance, public education and social security,
rather
> than the Bush tax cut.  Also internationally, the US can lead in
redirecting
> domestic development as a preferred path of growth and put trade back in
proper
> balance, in an auxiliary role rather than the main path for growth.  The
emphasis
> should be to boost global aggregate demand, and not just maintaining the
US as a
> market of last resort for Third World exports. Together with a
reorientation of
> trade, the US is in a position to launch a new international finance
> architecture, re-introduce foreign exchange control, regulate
international
> financial markets, and regulate the bankinbg and financial system.  Above
all,
> set full employment as a policy goal and manage monetary policy to
accommodate
> it.  Establish a credit allocation ploicy based on balanced growth, rather
than
> allowing credit allocation to be determined by the price of money-
interest
> rates.  Reform corporate accounting standards to prevent balance sheet
> manipulation to produce phantum profits while destroy real production.
>
>
>
> pdavidso wrote:
>
> > >===== Original Message From "Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>
=====
> > >This was posted by me to PKT on February 11, 2000 when the Dwo was
> > >heading towards 12000.  A few days after, the equity markets started to
> > >fall and has since lost $8 trillion in market capitalization, the
entire
> > >face value of M3 money supply in 2000, and 80% of GDP.  E-commerce is
> > >stuck in the mud.
> > >
> > >
> > >End of the Business Cycle?
> > >
> > >>
> > >Now, it may be interested to do a role-playing gaming simulation
> > >execercise:  assuming PK eonomists gain control of the CEA, what kind
of
> > >report would they issue and what different policies would such a CEA
> > >propose?
> >
> > Interesting question Henry!
> >
> > How many subscribers to this list want to go on record with their
prediction
> > for 2003 in this uncertain world of ours?
> >
> > I suspect that there is likely to be many political factors (forces) in
2003
> > that will tend to hold down (or even depress) the global economy --
vis-a-vis
> > expansionary forces.
> >
> > But since the future is non-ergodic who can say!
> >
> > Paul
> >
> > Paul Davidson
> > Editor, Journal of Post Keynesian Economics
> > University of Tennessee
> > SMC 503
> > Knoxville, Tennessee 37996-0550
> > phone # (561)369-1951; fax #(561)369-1951;
> > email pdavidson@xxxxxxx
> > http://econ.bus.utk.edu/davidsonextra/Davidson.html
>
>
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