So I harass them and they throw me a parade?
This would never work in America though, the second you pull out anything even remotely resembling a gun and someone will freak out and shoot you with a real one.

just look at those parents parading their children to prevent those pesky demons from entering their little bodies and controlling their soul!

that is some *quality parenting right there!

@RedSky

First, if it were up to me, you could take over as Minister of Finance in this country tomorrow. Our differences seem miniscule compared to what horrendous policies our last three MoF have pushed. The one prior, ironically, was dubbed the most dangerous man in Europe by The Sun.

We're in agreement on almost everything you mentioned in your last comment, so I'll focus on what I perceive differently.

First, I'd differentiate between fiscal stimulus and fiscal spending, the former being a situational application of the latter. As you said, fiscal stimulus during an economic crisis tends to be inadequate with regards to our macroeconomic objectives. You can neither whip out plans for major investments at a whim nor can you mobilize the neccessary resources quickly enough to make a difference and still be reasonable efficient. Not to mention that it only affects certain parts of the economy (construction, mostly), leaving others completely in the wind. So I'm with you on that one, it's a terribly inefficient and ineffective approach.

Automatic stabilizers work magnificently in this regard, but they barely take any pressure from the lower wage groups, especially if unemployment benefits come with a metric ton of strings attached, as is the case in Germany. A basic income guarantee might work, but that's an entirely different discussion.

The problem I see with merely relying on reasonable automatic stabilizers in the form of payments is that they do put a floor into demand, but do very little to tackle the problem of persistent unemployment due to a lack of jobs. As useful as training and education are, the mere number of highly educated people forced to work mundane jobs tells me that, at best, it doesn't work, and at worst pushes a systemic problem onto the individual, leading to immense pressure. Not to mention the psychological effects of being unemployed when employment is tauted as a defining attribute of a proper person -- aka the demonization of the unemployed.

It's still somewhat decent in Australia, but in Europe... it's quite a horrible experience.

Anyway, my point is that I'd rather see a lot more fiscal spending (permanent!) in the shape of public sector jobs. A lot of work cannot be valued properly by the market; should be done without the expectation of a return of investment (hospitals, anyone?); occurs in sectors of natural monopolies -- all of that should be publicly run. A job guarantee, like your fellow countryman Bill Mitchell advocates quite clearly, might be an approach worth trying out. Economy in the shit? More people on the public payroll, at rather low (but living wage!) wages. Do it at the county/city level and you can create almost any kind of job. If the private sector wants those people instead, they'd have to offer better working conditions. No more blackmail through the fear of unemployment -- you can always take a public job, even if it is at a meagre pay.

I should probably have mentioned that I don't buy into the notion of a stable market. From where I am standing, it's inherently unstable, be it through monopolies/oligopolies, dodging of laws and regulations (Uber), impossibility to price-in externalities (environmental damage most of all) or plain, old cost-cutting leading to a system-wide depression of demand. I'm fine with interfering in the market wherever it fails to deliver on our macroeconomic objectives -- which at this point in time is almost everywhere, basically.

Healthcare is all the rage these days, thanks to the primaries. I'd take the publicly-run NHS over the privately-run abomination in the US any day of the week. And that's after all the cuts and privatizations of the last two decades that did a horrible number on the NHS. Fuck ATOS, while we're at it.

Same for the railroad: the pre-privatization Bundesbahn in Germany was something to be proud of and an immeasurable boost of both the economy and the general standard of living.

In the mid/long run, the effects of automation and climate change-induced migration will put an end to the idea of full employment, but for the time being, there's still plenty of work to be done, plenty of idle resources to be employed, and just nobody to finance it. So why not finance it through the printing press until capacity is reached?

As for the Venezuela comparison: I don't think it fits in this case. Neither does Weimar Germany, which is paraded around quite regularly. Both Venezuela and Weimar Germany had massive supply-side problems. They didn't have the production capacity nor the resources to meet the demand they created by spending money into circulation. If an economy runs at or above its capacity, any additional spending, wherever it comes from, will cause inflation. But both Europe and the US are operating faaar below capacity in any measurable metric. You mentioned LRAS yourself. I think most estimates of it, as well as most estimates of NAIRU, are off quite significantly so as to not take the pressure off the wage slaves in the lowest income sector. You need mass unemployment to keep them in line.

As you said, the participation rate is woefully low, so there's ample space. And I'd rather overshoot and cause a short spike in inflation than remain below potential and leave millions to unneccessary misery.

Given the high level of private debt, there will be no increase in spending on that front. Corporations don't feel the need to invest, since demand is down and their own vaults are filled to the brim with cash. So if the private sector intends to net save, you either have to run a current account surplus (aka leech demand from other countries) or a fiscal deficit. Doesn't work any other way, sectoral balances always sum up to zero, by definition. If we want to reduce the dangerous levels of private debt, the government needs to run a deficit. If we don't want to further increase the federal debt, the central bank has to hand the cash over directly, without the issuance of debt through the treasury.

As for the independant central bank: you can only be independant from either the government or the private sector, not both. Actually, you can't even be truly independant from either, given that people are still involved, and people have ideologies and financial ties.

Still, if an "independant" central bank is what you prefer, Adair Turner's new book "Between Debt and the Devil" might be worth a read. He's a proponent of 100% reserve banking, and argues for the occasional use of the printing press -- though controlled by an inflation-targeting central bank. According to him, QE is pointless and in order to bring nominal demand up to the level we want, we should have a fiscal stimulus financed by central bank money. The central bank controls the amount, the government decides on what to spend it on.

Not how I would do it, but given his expertise as head of the Financial Services Authority, it's quite refreshing to hear these things from someone like him.

My views are heavily biased as well, just from a different point of view. Most of the discussion over here is fueled by misinformation and emotion.

And yes, some people outright refuse to put the blame on the individual. Can't have a proper discussion about anything with those folks. In any case, the laws DO apply to everyone equally, but enforcement has been just as lax in Cologne as it was regarding the hundreds of cases of arson I mentioned. Cost-cutting measures everywhere.

Additionally, what most people outside this country seem unable to understand is our problem with hate speech. It's not "just words" if you have a history where these words quickly turned into blood on the streets. Right-wing extremists and even outright Nazis still are a problem over here. People should keep that in mind before they parade their First Amendment before us -- different culture. Though discussion in general is somewhat lackluster over here, no matter the topic. Used to be better, but people try to avoid confrontation whenever possible...

Anyway, I'd say leave the video as it is. It might be interesting to see how folks react to it.

This stuff has always been going on. The problem is that you can now see it 24/7 and it's emotional so it moves to the front page ALL THE TIME. The actual truth is far more boring.
I also wouldn't say it's getting worse. The one advantage of these things being out there in our face constantly is that the public outrage tends to get things changed. If it doesn't change, you get something like Ferguson.
Some people complain about protesters, others join them. But as long as they peacefully assemble, then it is their right and protected. Our local, state and federal governments have consistently stood by that right.
All in all I think you'd be hard pressed to find a country that really does want to do good as much as we do. Now some people here have a weird hardcore idea of what good is, and we do have a fair share of stoopid, but we have a lot of good too. Plenty of videos out there showing that side as well. In fact the same city where this beating happened turned itself into Gotham and gave a Batman parade for a dying child. http://batkidbegins.com/
So there's that...

Yeah, what the hell is that all about? What time are they starting these days - noon? Ring my doorbell before dinner and you get nada. And what happened to Hallowe'en being scary ... if you want to dress up your kids in cute costumes and parade them in front of judges / closet pedophiles, then enter them in Universal Royalty beauty pageants and stop screwing it up for the rest of us who like the tradition of witches, ghosts, goblins and zombies. Would have been pretty easy to show Goose with a good spinal compression fracture and bone sticking out of his neck or a cracked skull or something. Sheesh.

It's a discussion we've been having in this country for as long as I can remember and was one of the prime arguments made for a vast set of reforms a decade ago. And I still don't buy it.

At the very basic level, the argument is that a declining percentage of working age people have to pay for an increasing number of pensions. But that's only half the story. The working age population has to generate enough output to sustain not just themselves and retirees, but also children, the unemployed, the sick, anyone not working. A shrinking population means less children, and most importantly less unemployed. Increases in productivity are more than enough to compensate for that, no need to increase birth rates or immigration.

Germany is regularly paraded around as a country in dire need of immigration, given our low birth rate. Even if we ignore for a minute that any 50 year population forecast of the past has been invalidated after maybe 5 years, the "worst" they could conjure up was a decline in working age population of 34% by the year 2060. So what? That's 0.8% a year. And since it's based on a population decline of 20% over the same time, it's an annual drop of 0.2%. That's their worst case scenario, and it's statistical noise.

We've had a massive increase in average age over the last century as well as two world wars and our system managed just fine. And an annual drop of 0.2% is supposed to bring it to its knees? Pah.

Now, I'm all in favour of immigration, primarily to spice things up and prevent our society from becoming too homogeneous. But our pension system needs neither mass immigration nor an increased birth rate. What it needs is for politicians to stop funneling funds from our "PAYGO" system towards their buddies in the private sector. Current income = current payments, public system. Everything else is too volatile and susceptible to the Vampire Squids on Wall Street.

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*dupeof=http://videosift.com/video/Confederate-Flag-Parade-in-Georgia-Wait-for-it

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http://videosift.com/video/Confederate-Flag-Parade-in-Georgia-Wait-for-it

8:18 – "Germany is very financially responsible".

The clip makes a few good points, twists others and omits some central issues. But I want to comment on the quote above most of all, because it forms the basis for all kinds of arguments and recommendations.

The claim that Germany is financially responsible stems from what has been paraded around domestically as the "schwarze Null" (black zero), meaning a balanced budget. Given how focused most economic debates are around the national debt or the current budget deficit, it shouldn't come as a surprise that not running a deficit evokes positive responses in the public. If there has ever been an easy sell, politically, it's this.

However, it's not that simple.

For instance, the sectoral balance rule dictates, by pure accounting identity, that the sum of public balance, private balance and external balance is 0 at all times. In case of Germany, this means that the balanced public budget (no surplus, just a fat zero) requires a current account surplus of the same size as private savings – or an accumulation of private debt. For someone to run a surplus, someone else has to run a deficit. In this case, foreign economies have to run a deficit vis-á-vis Germany, so that neither the German government nor the German private sector have to run a deficit.

The composition of each sector is another topic entirely, but the point remains: no surplus in Germany without a deficit in the periphery. If everyone is to be like Germany, Klingons have to run the respective deficit.

My question: is it financially responsible to depend on other economies' deficits to keep your own house in order? Is it responsible to engage in this kind of behaviour after having locked yourself into a monetary union with less competitive economies who have no way of defending themselves through currency devaluation?

Second point: capital accounts and current accounts are two sides of the same coin. If Germany runs a current account surplus of X%, it also runs a capital account deficit of X%. Doesn't explain anything, but it's the same for the countries at the other side of these trade imbalances. Spain's current account deficit with Germany meant a capital inflow of the same size.

Let's look at EuroStat's dataset for current accounts. Germany had run a minor current account deficit during the late '90s and a small surplus up to 2003. From then on, it went up, up, up. Given the size of Germany's economy within Europe, that jump from 2% to 7.5% is enormous. Pre-GFC, the majority of this surplus went to... yap, PIIGS. Their deficits multiplied.

Subsequently, capital of equals size flowed into these countries, looking for investments. No nation, none, can absorb this amount of capital without it resulting in a massive misallocation, be it stock bubbles, housing bubbles, highways to nowhere or lavish consumption. Michael Pettis wrote a magnificent account (Syriza and the French indemnity of 1871-73) of this and explains how Germany handled a similar inflow of capital after the Franco-Prussian war: it crashed their economy.

As Pettis correctly points out, the question of causality remains. Was the capital flow a pull or a push?

The dataset linked above says it all happened at just about the same time, in all countries. It also happened at the same time as Germany's parliament signed of on "Agenda 2010", which is the cause of massive wage suppression in Germany. Germany intentionally lowered its unit labour costs and undercut the agreed upon inflation target (2%). German employees and retirees were forced to live below their means, so the export sector could gain competitiveness against all the other nations, including those in the same currency union. Beggar-thy-neighbour on steroids.

Greece overshot the inflation target. They lived beyond their means. But due to their size, it's economically negligable. France stayed on point the entire time, has higher productivity than Germany and still gets defamed as the lame duck of Europe. Yet Germany, after more than a decade of financial warfare against its fellow members of the EU/EZ, is hailed as the beacon of financial responsibility.

Mercantilism always comes at the cost of others. And the EU is living proof.

Your video, Confederate Flag Parade in Georgia. Wait for it...., has made it into the Top 15 New Videos listing. Congratulations on your achievement. For your contribution you have been awarded 1 Power Point.

Its the section commander (secco) that shouted (highlighted by lucky above), and likely the platoon sergeant (dude in front), or one of the bystanders that said move.

They are well within their rights to command civilians to make way for the drill formation.

It is not a catafalque parade, no such restrictions on keepin yer trap shut exist in normal drill for seccos or platoon sergeants.