This week Obama holds his budget meetings trying to get a bi-partisan agreement.

And we have Conrad proposing Simpson-Bowles because the Obama Gang of Six can’t agree on even minor tax increases – and expected result since Obama chose those conservative DINO’s like himself that prefer to be only a slight distance from the far right on any position.

If what is needed as the Democratic starting position is not the People’s Budget from the Progressive Caucus, what changes must Obama have before he could present it to the GOP as his starting point – does he want more defense spending, less infrastructure, less tax on the rich – what was the change that Obama sees as needed so that it is not a good starting point?

Meanwhile MMT and I are not getting along very well.  I plugged the Fed reports numbers into those MMT equations as best I could – and the equations do not work. As accounting identities they make a lot of sense – but perhaps they exclude wealth creation, or loss, during the year, or something else that I do not follow. If you can pull real numbers from any year – I used Federal Reserve year 2000 numbers – and $1800 private/corporate/gov saving was much higher than the export flows making that identity fail.    If anyone has Fed numbers that prove those MMT accounting identities in real life that would be helpful – I no doubt am pulling the wrong numbers to put into the equations.



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