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Economist Richard Wolff explores the complex, worrisome economic relationship between China and the U.S. American consumerism, he says, funds China's ability to lend to the U.S. in what he calls a "replay in reverse" of the Marshall Plan.
http://networkedblogs.com/2XoJg
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Currently, I'm reading Bad Money, by Kevin Phillips, which my wife bought for me yesterday.
http://www.amazon.com/Bad-Money-Reckless-Politics-Capitalism/dp/0670019070
Only one chapter into it. Fascinating!
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The REAL reason I am studying various lines is that I'm trying to make sense of what I see happening in the country and the world. I can't bring myself to truly accept any conventional wisdom it seems. I believe one of my responses to this week's class assignments illustrates the confusion. I brought up the point that as a general rule, I am almost always in favor of government returning the people's money to them (tax refunds, cuts, etc).
I wrote:
"...Oh, and as an afterthought. I understand that this may well result in inflation. But as I've said before (I think), inflation is at this point a foregone conclusion. I believe the only thing holding inflation in check currently is the unemployment. But if/when people get back to work, inflation will certainly kick in. You can't expect to print a gazillion dollars with nothing backing it and expect it will hold its purchasing power.
So again, with inflation being a given in my opinion, returning the people's money to them seems the best bet to me. Perhaps if this returned money was saved, rather than immediately spent, it would help fight inflation. But now we're back to prolonging the recession without the spending.
What a mess!"
The Professor's Reply:
What I really like about your path thus far is the fact that you seem to be embracing education regarding many economic lines of thought. Too many aspiring economists resign their studies to include only those ideals that happen to fit their pre-disposed notions of what is "right" or "wrong".
As you read more and more from those who preceded you within academia, you will find that nearly all of these experts present viable theories and practices that have, at times, proven effective - and ineffective - where solving economic problems are concerned.
We end the course in a few weeks, but never let that dissuade you from keeping in contact if you should have anything you would like to discuss or pose a question about.
Have a great weekend!
Professor C
(I purposely abbreviated his name. We do NOT refer to him as Professor C)
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So yes, I will accept that as in the case of so many topics, that the truth lies in combining many answers.
Besides, it's said that whoever wins the wars gets to write the history books. I suppose they also get an upper hand when writing economic theory.
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