Berkeley CA: Professor Peso Krugerrand retired today as Chairman of the Economics Department of UC Berkeley after 50 years of teaching Keynesian economics. President Obama and Michelle made a special trip on Air force One to be with the administrations former special economics advisor on his retirement day.
In a short speech the president called Kruggy "one of America's greatest economic thinkers." As a special economic advisor to President Obama, Kruggy came up with an innovative approach to help solve the current US debt crisis, for which the professor received a Nobel Prize.
Basic federal government economics requires that:
REVENUE - SPENDING = 0
This equation results in a balanced budget where revenue such as income taxes, licenses and fees are used to pay for discretionary and mandated spending programs. However, in recent years because federal government spending has increased beyond revenue the following occurred:
REVENUE - SPENDING + DEBT = 0
Debt is caused by the US borrowing money from the American people and foreign countries, via US Treasury bills and notes, to keep the equation balanced. This national debt must be paid back with interest. Kruggy's genius in eliminating the debt was:
REVENUE - SPENDING + DEBT - (A MIRACLE) = 0