Listen to my radio show of August 5 on growing criticism of central bank QE policies and their contribution to financial instability, the coming shift to fiscal stimulus in 2017, and debates about ‘helicopter money’.
To listen to the show go to:
http://prn.fm/category/archives/alternative-visions/
or go to:
http://www.alternativevisions.podbean.com
SHOW ANNOUNCEMENT:
Alternative Visions – Why QE Policy is ‘Dead and Dying’ and ‘Helicopter Money’ Is An Alternative -Aug 5th, 2016 by progressiveradionetwork
“Jack Rasmus explains why all economic indicators for the US economy are ‘flashing red’ except for consumer spending, driven mostly by surging household debt again in credit cards, mortgages, auto loans and student loans. Meanwhile, 7 1/2 years of continued low interest rates created by the Federal Reserve (and other central banks) are creating a crisis in pensions, insurance, and sectors of banking. Jack explains why global central banks continue the massive free money injections for investors and why it is now destabilizing the global economy. The UK central bank’s just announced new QE2 program is described and critiqued, as the European Central Bank continues to expand its QE, and the Bank of Japan does the same. Why Global capitalists are beginning to rethink the reliance on free money via QEs and reconsider some form of fiscal stimulus, which Jack predicts is coming in 2017 as interest rates rise. What form will the new fiscal stimulus take? One discussed is ‘helicopter money’—i.e. QE for Main St. Jack concludes with explaining helicopter money and his recent proposal to US Green party presidential candidate, Jill Stein, to use it to expunge most of the US $1.3 trillion student debt. “
Dr. Jack Rasmus @drjackrasmus
Jack Rasmus 
Excellent idea, helicopter money. Government created greenbacks resolve the rhetorical deadlock between “taxation is theft, No new taxes” and the obvious need for a stimulus that goes directly to working families, such as large public works employment programs like the WPA, CCC, They could be in needed work at living wages, like national day care, and local small – tool environmental maintenance and adaptation, The issuance of greenbacks for this could be EXPERIMENTAL, controlled for inflation, e.g.,issuance until the CPI has gone up 1 percentage point, say from 2% CPI to 3%. Such programs must be direct government employment, not involving standard neoliberal stimuli that have to bribe private enterprise to create jobs.
I was little confused on Helicopter Money. So Helicopter Money is not added to 19 trillion debt, so it is good money in other words.
Helicopter money comes down to public from government, and where does the government get that money from when its not added to country debt which is at 19 Trillion. I will be looking for answers from experts or may be Jack will response.
I thought that the Fed was constrained to buy T-bills only in the secondary market & could not buy them at auction. Would Congress need to act to permit the Fed buying T-bills directly, or could this be done by an executive order? Another great show today, compelling as always. Minor point – with the many asides (all interesting, especially the speculation about defense spending as a vehicle for fiscal expansion), I didn’t catch what that third arrow is in Abenomics.