Economics Daily Digest: Learning to love the platinum coin

By Tim Price, originally posted on Next New Deal

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The Post-Crisis Crises (Project Syndicate)

Roosevelt Institute Chief Economist Joseph Stiglitz argues that policymakers shouldn't let short-term conflicts like the fiscal cliff distract them from long-term problems like adapting to climate change. They'll regret wasting their breath when everything's underwater.

Calling McConnell's Bluff (Prospect)

Robert Kuttner writes that while Republicans are talking a good game about the upcoming debt ceiling battle and the possibility of a government shutdown, there's no reason for President Obama to fold this hand when he's got the Fourteenth Amendment card to play.

Be Ready to Mint That Coin (NYT)

Assuming that the Constitution alone can't make the GOP back down, Paul Krugman thinks the White House should exploit the loophole that allows it to mint a $1 trillion platinum coin. Or in the words of George Costanza, "You wanna get nuts? Come on, let's get nuts!"

Why Platinum Coin Opponents Are All Wrong (Bloomberg)

If you think the platinum coin idea seems a little ... weird, like an internet meme that escaped into the wild and went feral, Josh Barro provides four counter-arguments. After all, what sounds more insane: paying our debts with novelty coins, or defaulting for no reason?

Democrats signal intention to tackle the 'submerged state' (MSNBC)

Ned Resnikoff notes that Democrats are targeting tax credits and deductions that benefit the rich and make up part of what Suzanne Mettler calls "the submerged state" -- the kind of aid that the government disguises like it's trying to trick its dog into swallowing a pill.

The Cliff Game (NYT)

Nancy Folbre writes that Washington's budget battles have turned into a high-stakes game of chicken between the two major political parties, but the Democrats have more incentive to swerve in order to avoid leaving tire tracks on the backs of their constituents.

We don't have a spending problem, we have a military spending problem (WaPo)

Ezra Klein argues that if Republicans like Paul Ryan want to be taken seriously when they complain about excessive government spending, they need to admit America won't exactly be fighting blindfolded with Nerf bats if we trim down the $530 billion defense budget.

Women on Corporate Boards Bring More Aggressive Action (Forbes)

NND Editor Bryce Covert highlights a report that shows the presence of women doesn't cause corporate boards to spend more time crocheting and talking about Downton Abbey. They tend to focus on other things, like making sure the company is actually run well.

Inside the Radical Plan to Fight Foreclosures With Eminent Domain (MoJo)

Josh Harkinson talks to Steven Gluckstern, who advocates using cities' power of eminent domain to seize loans from lenders and help prevent foreclosures. Critics find his motives suspect, unlike the very straightforward desire of banks to throw people out on the street.

Rescued by a Bailout, A.I.G. May Sue Its Savior (NYT)

Ben Protess and Michael De La Merced report that after launching its "Thank you America" ad campaign, AIG may express the depths of its gratitude by joining a shareholder lawsuit alleging that the terms of the bailout were too harsh. Really? The building's still standing.