Donald Trump Gets Something Right: The US Can Avoid Defaults by Printing Money

Donald Trump is getting mocked on the internet for declaring that:

This is the United States government. First of all, you never have to default because you print the money. I hate to tell you. So there’s never a default.

Trump critics are crowing, accusing Trump of being ignorant of economics. There’s a lot of reason to think that Trump doesn’t know his economics (such as the outlandish tax plan he proposed). But this time Trump is right–the government really can avoid defaults by printing money. Here’s how.

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What the Arab Spring Teaches Us About Armed Rebellion

Horrible things have been happening to Aleppo, a UNESCO World Heritage site and Syria’s largest city. Large parts of the old city has been destroyed, though not for the first time–the city was sacked as recently as 1440 by Tamerlane, a vicious Mongol conqueror who is estimated to have killed 5% of the world’s people. All told, the Syrian Civil War has killed more than 270,000 people, creating more than 4 million refugees and displacing 7.6 million. These high losses have not resulted in any constructive political change in Syria–Bashar al-Assad’s faction remains the strongest in the country. The conflict has made no one better off aside from the Islamic State, which has used the chaos to carve out a slice of territory for itself:

Syria and Iraq 5 May 2016

The Syrian government is red, the Iraqi government is purple, the rebels are green, Islamic State is black, and the Kurds are orange. When the Syrian Civil War started, a lot of people in the west were excited by the possibility of overthrowing the Assad regime and creating a new democracy in the Middle East. Instead we have a bloody power vacuum filled in which the only winners are terrorist organizations. What’s interesting about this is that Syria is not an isolated case–the Arab Spring revolutions that turned violent all went so badly, while those that remained peaceful sometimes achieved meaningful results.

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The DNC Didn’t Screw Bernie–The Voters Did

The New York primary was an unmitigated disaster for Bernie Sanders. Polichart’s updated victory targets called for Sanders to win 54% of the vote and get 133 delegates. He got 42% and 108. This puts him 36 delegates behind schedule, and he still trails in the polls in Pennsylvania, Connecticut, Maryland, Delaware, New Jersey, and California. Sanders failed to do better than the polling data in New York indicated he would do, damaging the comforting theory that polls in northern states underrate him. As regular readers know, I am very sympathetic to Sanders, but I cannot in good conscience mislead you about the realities of the political situation. In the last few days, many well-intentioned people have tried to make arguments that Sanders can still win or that Sanders would be winning if the DNC were not corrupt–I wish these arguments were true, but they’re not. Sanders is losing because most Democratic primary voters do not support him.

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Bernie Sanders: What the Economists are Fighting About

Economists have gotten into a big fight with each other about the potential economic impacts of Bernie Sanders’ proposals. First Gerald Friedman came out with a new paper anticipating a tremendous improvement in economic performance under Sanders. Then four economists (Krueger, Goolsbee, Romer, and Tyson) affiliated with the Obama and Clinton administrations wrote a joint letter asserting that Friedman’s claims “cannot be supported by the economic evidence”. Paul Krugman subsequently took their side on his popular blog. Others have defended Friedman–Jamie Galbraith accuses the four of not having rigorously reviewed the paper, while Dean Baker claims that the New York Times is not giving Sanders’ side a platform and that there’s far more support among economists than we are being led to believe. In the popular press, this argument has rapidly devolved into a question of which authorities are more or less credible. I want to give you something better–a readable analysis of the actual arguments at stake here.

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Hillary Clinton is like Katniss Everdeen in The Hunger Games

When I watched the third democratic debate, I was amused and horrified with the way Hillary Clinton defended the decision to intervene in Libya:

…we have to continue to do what is necessary when someone like Gadhafi, a despot with American blood on his hands, is overturned.

This is precisely the same way that George W. Bush continues to defend the Iraq War:

One thing is certain: The Iraqi people, the United States and the world are better off without Saddam Hussein in power

On these accounts, overthrowing dictators is the right decision because dictators are bad, and we should get rid of bad people. This reminds me way too much of the plot of The Hunger Games: Mockingjay Part 2Spoilers for that movie follow, if you care about such things.

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