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Message: Love Pinetree but Auerbach's economics bother me

Has anybody noticed the weird neo-Kenesian economics that Marshall Auerbach believes in?

He has mentioned in video interviews that printing money to purchase bonds on the part of government is not inflationary because you are not spending the money (????). Bond buying IS SPENDING. Just watch the stock markets re-inflate after bond purchases. We have to remember that the bonds are not only in the hands of the FED but also in the hands of people, and when you purchase bonds in the market you put money in the hands of people. If it didn't affect the money supply then central bankers would not purchase bonds to lower interest rates and inflate.

watch the end of this video near the end:http://watch.bnn.ca/#clip755145

Another time he said that printing money was not inflationary in the present European deficit situation because you had to balance both sides of the balance sheet (????), claiming that this was "accounting 101". Read the article:http://www.rooseveltinstitute.org/new-roosevelt/memo-moody-s-it-s-accounting-101-not-economics

He says that austerity measures collapse aggregate demand, which is Keynesian nonsense. Prosperity comes from production and savings, not from demand/consumption. I would like to put Marshall in the middle of the desert and command him to consume, and see how far he gets. The first video shows Marshall talking about this as well, near the beginning.

Anyway, I own quite a bit of PNP but MA's understanding of economics bothers me quite a bit.

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