Saturday, May 25, 2019

A Dialectical Analysis of Myth


Those trained via dialectical method always retreat and flee into mythology when they eventually hit the wall technically; eventually you see them dispense something associated with myth.  Article here written by a dialectic person from that perspective; I'd assume not qualified technically.

Article at Mesocosm.

The abject failure to understand mythological thinking is one of the most serious problems of our age, politically, culturally, philosophically, and spiritually. Irrational forces drive individual behavior and collective action, and the failure to understand and live in productive dialog with the energies of the psyche leaves reason vulnerable on several fronts, and cedes a deep matrix of human motivation to noxious and self-serving ideologies. 
The essay that follows, I must emphasize at the onset, is not a critique of science or an endorsement of myth; rather, it is a dialectical analysis of the interplay between both.


Friday, May 24, 2019

Andrei Martyanov — Douglas Macgregor Hits It Out Of The Ball Park


Douglas Macgregor is a military policy realist. He analyzes the US military and its operational strategy (in contrast with grand strategy as implementation of policy).

Reminiscence of the Future
Douglas Macgregor Hits It Out Of The Ball Park
Andrei Martyanov

Alexander Losev — Finance as an Operational Theater in US-China Trade War


How a global economic crisis could break out if the Sino-American trade war gets out of hand.

While the analysis is not in paradigm with MMT, it is the way many if not most approach the issues and this cognitive bias gives a spin to behavior based on it.

Valdai Analytics
Finance as an Operational Theater in US-China Trade War
Alexander Losev

Tyler Cowen — *Range: Why Generalists Triumph in a Specialized World*

I sometimes say that generalists are the most specialized people of them all, so specialized they can’t in fact do anything. Except make observations of that nature. Excerpt:
In an impressively insightful image, Tetlock described the very best forecasters as foxes with dragonfly eyes. Dragonfly eyes are composed of tens of thousands of lenses, each with a different perspective, which are then synthesized in the dragonfly’s brain.
I am not sure Epstein figures out what a generalist really is (and how does a generalist differ from a polymath, by the way?), but this book is the best place to start for thinking about the relevant issues.
Generalists are a subset of polymaths, since one must be a polymath to be a decent generalist. One definition of philosophy is the study of the whole. Plato and Aristotle were such generalists that they were able to establish the foundational structure of the Western intellectual tradition.

Keynes was a generalist whose training was in mathematics. Adam Smith and Karl Marx were also generalists trained in philosophy. Marx was responding to Hegel who was an über-generalist. Economist Kenneth Boulding was also a generalist and a co-founder of general systems theory. He also contributed to the study of conflict and conflict resolution.

Marginal Revolution
*Range: Why Generalists Triumph in a Specialized World*
Tyler Cowen | Holbert C. Harris Chair of Economics at George Mason University and serves as chairman and general director of the Mercatus Center

Branko Milanovic — “We had everything before us, we had nothing before us”.


Some philosophy in the broad sense that is neither MMT nor economics-related but important owing to its contemporary relevance in determining the social, political and economic dialectic that the world is experiencing at this point in time and which is shaping the future for some time to come.

Are we in another Gramsci interregnum?
The crisis consists precisely in the fact that the old is dying but the new cannot be born; in this interregnum a great variety of morbid symptoms appear. — A. Gramsci, Prison Notebooks, 3
Global Inequality
“We had everything before us, we had nothing before us”.
Branko Milanovic | Visiting Presidential Professor at City University of New York Graduate Center and senior scholar at the Luxembourg Income Study (LIS), and formerly lead economist in the World Bank's research department and senior associate at Carnegie Endowment for International Peace
A quick search on the Internet shows that, in the past few years, a spike occurred in the frequency of references to Gramsci’s famous quote about “morbid symptoms”: “The crisis consists precisely in the fact that the old is dying and the new cannot be born; in this interregnum a great variety of morbid symptoms appear.”
I myself have contributed to this spike by borrowing the phrase “morbid symptoms” for the title of my 2016 book on the counterrevolutionary phase that followed the Arab Spring, and by quoting the whole sentence as epigraph to the book.
The obvious reason for this spike in uses of the quote is that it provides a clue to the emergence on the global scale, in recent years, of various phenomena that are unmistakably “morbid” from a progressive perspective: from the sad fate of the Arab Spring to the so-called Islamic State, to the reinvigoration of the European far right, to Donald Trump, and so on and so forth. However, before dwelling on the relevance of the above sentence to our present condition, it is appropriate to start by making sure that we correctly understand what Gramsci meant when he wrote it. For this, we need to reinsert the quotation in the text from which it was lifted and replace this text in its own historical context in order to grasp Gramsci’s intention, which may be different from what we instinctively attribute to him in retrospect....
ISR — International Socialist Review
Morbid Symptoms?
Gilbert Achcar


Thursday, May 23, 2019

Fed Minutes


Interesting reveal in latest Fed minutes where we can now see the FOMC exhibiting some understanding of the Accounting relationship between the Treasury General Account fluctuation and Reserve composition here; excerpt:

The deputy manager reviewed developments in domestic money markets. Reserve balances declined by $150 billion over the intermeeting period and reached a low point of just below $1.5 trillion on April 23. The decline in reserves stemmed from a reduction in the SOMA’s agency MBS and Treasury holdings of $46 billion, reducing the SOMA portfolio to $3.92 trillion, and from a shift in the composition of liabilities, predominantly related to the increase in the Treasury General Account (TGA).
The TGA was volatile during the intermeeting period. In early April, the Treasury reduced bill issuance and allowed the TGA balance to fall in anticipation of individual tax receipts. As tax receipts arrived after the tax date, the TGA rose to more than $400 billion, resulting in a sharp decline in reserves over the last two weeks of April. Against this backdrop, the distribution of rates on traded volumes in overnight unsecured markets shifted higher. The effective federal funds rate (EFFR) moved up to 2.45 percent by the end of the intermeeting period, 5 basis points above the interest on excess reserves (IOER) rate.


And btw last year same issues with TGA and Reserve composition and seasonality effects on these balances around Tax Day BUT..... no mention of TGA in last year's minutes here ... hmmmm why include this now but not then????  Evolved from the apes by random chance mutation????  I don't think so...

Well I'll tell you why and its because someone over there is getting a hold of Mike's scientific work over the last year where he has been including these effects of wild TGA fluctuations in his financial analysis that is why...  either in his subscription service or his V-logs... GUARANTEED.... lock... it.....  noooooooobody else talking about this before... noooooooobody... and then all of a sudden voila here it is in the Fed minutes... coincidence? I think NOT...

Based on these minutes, you can see Fed using Mike's analysis to try to assess the effect of these account fluctuations on their managment of their FFR but still not making the connection between these balances and the various bank regulatory ratios so still making the same error of omission as the MMT people.

Fed making (at least) TWO errors; one (BIG) error of reification where they continue to think "banks lend out the reserves!" and one error of omission where they don't exhibit understanding of the subject variation in Reserve composition effects on bank regulatory ratios and stress testing.

MMT just making the ONE error of omission, MMT of course not making the error of reification; asserting (correctly) the abstract property of Reserve Balances via analogy ("it like points on a scoreboard!") always being a big part of the MMT dialectic thesis.

But Mike gets credit for this at least small step forward for the Fed imo...


Links — 23 May 2019

Bloomberg View
The New Assange Indictment Endangers Journalism
Eli Lake

RT
'Modern fascism is breaking cover': Journalists react to Assange Espionage Act charges

Buzzfeed
Legal experts say the new indictment against Assange is the first time the Justice Department has used the Espionage Act to charge a third party — not the government leaker — with publishing classified information.
Press Freedom Groups Say The New Charges Against Julian Assange Are A Threat To Journalists
Zoe Tillman

The Hill
Democratic senator warns of threat to press freedom in new Assange charges
Zack Budryk

Boston Review
The Anti-Defamation League Is Not What It SeemsUnder the guise of fighting hate speech, the ADL has a long history of wielding its moral authority to attack Arabs, blacks, and queers.
EMMAIA GELMAN

McKinsey — A new look at the declining labor share of income in the United States

Labor’s share of national income—that is, the amount of GDP paid out in wages, salaries, and benefits—has been declining in developed and, to a lesser extent, emerging economies since the 1980s. This has raised concerns about slowing income growth, inequality, and loss of the consumer purchasing power that is needed to fuel demand in the economy. The decline has been much discussed and the rising power of companies vis-à-vis workers—whether from new technology, globalization, the hollowing out of labor unions, or market consolidation—has shaped much of that discussion.
The labor share of income in 35 advanced economies fell from around 54 percent in 1980 to 50.5 percent in 2014.
In A new look at the declining labor share of income in the United States (PDF–849KB) we examine the relative importance of different factors in the United States through a focus on the complement of the labor share decline—that is, the rise in capital share of income. We decompose this into the role of depreciation, capital-to-output ratios, and returns on invested capital. Linking this decomposition with a microanalysis of 12 key sectors allows us to identify the relative importance of the factors that have contributed to the labor share decline. While our findings confirm the relevance of the most commonly cited factors, including globalization and technology adoption, they also suggest that additional trends often absent from the current debate—including boom and bust effects from commodity and real estate cycles and rising depreciation, including from a shift to more intangible capital such as intellectual property—played an even more central role.
McKinsey
A new look at the declining labor share of income in the United States

See also

Jason Hickel
HOW NOT TO MEASURE INEQUALITY

Tyler Durden — iPhones Are Now "Embarrassing" In China As Trade War Deepens


Tim Cook's worst nightmare. But not just Apple. American products used to cool. Now, the coolness factor is disappearing.

China had already completed its export-dependent phase of the economic plan, and was already embarking on increasing consumption-share of GDP. This just hastens the transition as the government is forced to increase domestic demand through stimulus to maintain employment.

Zero Hedge
iPhones Are Now "Embarrassing" In China As Trade War Deepens
Tyler Durden

Matthew Ehret — Trump Attacks Military Industrial Complex and Calls for Infrastructure Investments in the Middle East

While Trump has too often accommodated this hive of neocons, his recent statements and repeated calls for cooperation with Russia and China demonstrate a sound push back which should be taken very seriously. In that Fox interview Trump said:

“With all of everything that’s going on, and I’m not one that believes—you know, I’m not somebody that wants to go in to war, because war hurts economies, war kills people, most importantly—by far most importantly.”You know, in Syria, with the caliphate, so I wipe out 100 percent of the caliphate. That doesn’t mean you’re not going to have these crazy people who run around blowing up stores and blowing up things—these are seriously ill people. I don’t want to say, ‘Oh, they’re wiped,’ you know, ISIS. But, I wiped out 100 percent of the caliphate. I say, ‘I want to bring our troops back home.’ The place went crazy. You have people here in Washington, they never want to leave.”‘You know what I’ll do, I’ll leave a couple hundred soldiers behind,’ but if it was up to them, they’d bring thousands of soldiers in. Someday people will explain it, but you do have a group, and they call it the military-industrial complex. They never want to leave. They always want to fight.”
Trump continued to explain his preference for economic over military solutions which is certainly in alignment with the Russia and Chinese approach in the Middle East....
Strategic Culture Foundation
Trump Attacks Military Industrial Complex and Calls for Infrastructure Investments in the Middle East
Matthew Ehret

See also
President Donald Trump said on Thursday he did not think additional U.S. troops are needed in the Middle East to counter Iran, casting doubt on a Pentagon plan to bolster forces in the region.
Reuters
Trump doubts U.S. needs to send more troops to Middle East
Phil Stewart, Jeff Mason




Manlio Dinucci — Rand Corp: how to destroy Russia

The conclusions of the latest confidential report by the Rand Corporation were recently made public in a « Brief ». They explain how to wage a new Cold War against Russia. Certain recommendations have already been implemented, but this systemic exposure enables us to understand their true objective.…
What America's best and brightest are up to these days.

Strategic Culture Foundation
Rand Corp: how to destroy Russia
Manlio Dinucci

Okwonkwo — Before the US started harassing Huawei, there was Toshiba of Japan and Alstom of France in the same boat


Brook no competitors. Huawei is nothing new. But taking a country the size of China is. The US did not need the Japanese or French markets. The Chinese market is quite a different matter.

KenyaTalk
Before the US started harassing Huawei, there was Toshiba of Japan and Alstom of France in the same boat
Okwonkwo

See also
The consequence of the the 737 MAX accidents give China a tool to exert pressure of its own. The credibility of the U.S. regulator FAA is damaged as it was the last one to ground the planes. It is China that will decide when those planes are allowed back into its air. What if it does not do that. What if it buys less planes:
No other country has greater demand for aircraft: In the 20 years through 2037, Boeing estimates Chinese purchases at 7,690 new planes worth $1.2 trillion.
Airbus will be happy to sell all those planes. Unless of course Trump makes a deal and lets Huawei off the hook.
Forget Airbus. After having enormous success in military export, Russia is gearing up for the civilian market, which it will soon begin to take a piece of in any case.

Moon of Alabama
Why Trump's Huawei Ban Is Unlikely To Persist

Andrei Martyanov — Hm, Something Is Missing....


How the West rewrites history. Andrei Martyanov sets the record straight.

Reminiscence of the Future
Hm, Something Is Missing....
Andrei Martyanov

Vasily Kashin — The West and Russian-Chinese Relations: Stages of Denial


A look at the view of Sino-Russian relations in contrast to the reality of their mutually supportive alignment that is not hierarchical and doesn't involve dependence. In other words, a solid relationship that is mutually beneficial.

Analytics Valdai
The West and Russian-Chinese Relations: Stages of Denial
Vasily Kashin

Bill Mitchell — Being anti-European Union and pro-Brexit does not make one a nationalist

The European Parliament elections start today and finish at the weekend (May 23-26). The Europe Elects site provides updated information about the opinion polls and seat projections, although given the disastrous showing of the polls in last Saturday’s Australian federal election, one should not take the polling results too seriously. But it is clear that there is an upsurge in the so-called populist parties of the Right at the expense of the traditional core political movements (centre-right and centre-left). It is also easy to dismiss this as a revival of ‘nationalism’ based around concepts of ethnicity and exclusivity and dismiss the legitimacy of these movements along those lines. However, that strategy is failing because the ‘populist’ parties have become more sophisticated and extended their remit to appeal more broadly and make it difficult to relate them to fascist ideologies. The fact that the progressive (particularly Europhile variety) continue to invoke the pejorative ‘nationalist’ whenever anyone begs to differ on Europe and question why they would support a cabal which has embedded neoliberalism and corporatism in its very legal existence (the Treaties) is testament to why the traditional Left parties are showing up so badly in the polls these days. The British Labour Party, for example, should be light years ahead of the Tories, given how appalling the latter have become. But they are not a certainty if a general election was called and the reason is they have not understood the anxieties of the British people and too many of their politicians are happy to dismiss dissent as being motivated by racism. The Brexit outcome so far is a good case study in that folly....
Since MMT focuses on monetary systems, in particular the existing floating rate regime, and currencies are national units of account, nationalism versus internationalism becomes relevant, especially in democracies. 

Limitation of sovereignty, including currency sovereignty limit the scope of democracy by transferring control of previously national matters to international bodies and entities that are not accountable to national electorates and cannot be addressed through the political process.

In this, there is nothing intrinsically xenophobic or ethnic involved. It is simply preserving the power of the people to require accountability from elected representatives.

This was the original idea of Populism, Prarie Populism, and the Populist movement in the US and Canada, as well as Progressivism historically. The basic idea is the people taking sovereignty back from the elite that had hijacked popular sovereignty as the basis of liberalism and liberal democracy, and turned the country into a plutonomous oligarchy.

Very often, international arrangements benefit national elites but not the people at large. Therefore, international institutional arrangements can be viewed as anti-democratic by design. Actual outcomes seem to support this view.

Historically, such issues were discussed in detail at the time of the formulation of the US founding documents, which involved states ceding a great deal of the sovereignty to the federal government, specifically in The Federalist Papers

The discussion there is informed by the founding fathers knowledge of the Western intellectual tradition that was formed in ancient Greece, where Athens was the incubator of Western democracy and the Western liberal tradition. Although centrists led by Alexander Hamilton prevailed at the time, the controversy over federal prerogatives and states' rights remains lively today. America fought the Civil War over it.

My background is in philosophy and while not my primary focus, social and political theory is a sub-specialty. Like Karl Marx, I came to realize that social and political thought and practice cannot be approached comprehensively independently of economic and financial thought and practice. While Marx is often viewed as an economist, his training was in philosophy and whose work is chiefly about social and political theory, not economics per se. Adam Smith also. I regard Smith, Marx and Keynes as the big three in economic thought, and none of them were trained in economics. Keynes was a mathematician, as Michael Emmett Brady has attempted to show, which he contends, is why economists fail to understand what Keynes actually wrote.

The following quotation sums up why currency sovereignty and who controls it are crucial. 
"Give me control of a nation's money and I care not who makes its laws" — attributed to Mayer Amschel Bauer Rothschild (likely a false attribution)
Even though this quote appears to be spurious, the idea behind it is sound. Thus, the importance of currency sovereignty to democratic governance, and the relevance of MMT to social theory and practice.

Of course, the same can be said of the press, the commanding heights of the economy, and the political process. However, in a plutocracy, which is what representative democracies (republics) are, wealth is determinative. In a plutonomy everything comes back to money, who has it and who doesn't have it.

Neoliberalism can be viewed as a political theory that serves plutonomy. And the neo-imperialism and neocolonialism that follow from it can be viewed as the attempt to extend Western dominance and achieve global hegemony with the assistance of comprador governments run by local elites as minions of the Western elite.

Bill Mitchell – billy blog
Being anti-European Union and pro-Brexit does not make one a nationalist
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Wednesday, May 22, 2019

Michael Muharrey — Signed as Law: Kansas Removes Barrier to the Use of Gold and Silver as Money


Money crankery.

So everyone using bullion as money carries scales and assay equipment and keeps up on market fluctuations of bullion on smart phones? Really?

Activist Post
Signed as Law: Kansas Removes Barrier to the Use of Gold and Silver as Money
Michael Muharrey | Communications Director for the Tenth Amendment Center



Marko Marjanovic — Big Blow for Huawei as Japanese, Korean, British Firms Reconsider or Suspend Cooperation as Well

Huawei’s suppliers in Japan, South Korea, Taiwan (ROC), and Britain are examining if they can continue to make business with Huawei, while some have already declared a suspension in cooperation.
The issue is that these non-American companies nonetheless use some American components of technology, and if they proceed they will be sanctioned by the US themselves.
It is the same reason why Russia’s Sukhoi did not in the end sell its SSJ-100 airliners to Iran….
Apparently some have forgotten that Nazi Germany was way ahead of the West in development of rocketry, jet aircraft, and atomic weapons. The US instituted the Manhattan Project to catch up.  And remember how MIG-15's ended US control of the skies in Korea? The US had to scramble to bring its own jets into service as quickly as possible. Certainly, China and Russia will try to do the same to become self-sufficient in technology, and they have the resources to do so if they choose. Now they have no choice.

Skeptics point out that this will take time. Well, both China and Russia are in this for the long haul. The tech world is splitting, whatever that will entail subsequently.

In the end, these countries that the US views as adversaries will emerge stronger and more self-sufficient, and they will also be stiffer competitors in the global economy. Russia and China will also be forced to cooperate out of necessity, deepening the fissure between West and Global North, and East and Global South.

Checkpoint Asia
Big Blow for Huawei as Japanese, Korean, British Firms Reconsider or Suspend Cooperation as Well
Marko Marjanovic

See also
Donald Trump’s former chief strategist Steve Bannon gave an impassioned account of what is driving the US war on Chinese tech firm Huawei… and trade has little to do with it. The US wants to destroy its competitor, for good.
Capitalism is about monopoly power. Free market competition as modeled by neoclassical economics reduces profit to costs, eliminating rents.

RT
‘Shutting down’ Huawei ‘10 times more important’ than trade deal with China – Bannon

Also

Zero Hedge
Expect A Long-Trade War: China Offers Tech Companies Five-Year Tax Break To Offset Tariffs
Tyler Durden

T. J. Cole — Vicious Cycle: The Pentagon Creates Tech Giants and Then Buys their Services


"Private enterprise" and "the free market" at work. Ain't capitalism grand.

Counterpunch
Vicious Cycle: The Pentagon Creates Tech Giants and Then Buys their Services
T. J. Cole

Katsuji Nakazawa — Xi Was Ready for a Deal With Trump, But the Party and the Politburo Overruled Him


Worse than the headline. "Unequal treaties" is a hot button for all Chinese as being reminiscent of China's humiliation by Western "gunboat diplomacy." No way Xi can accede to US demands even if he wanted to without jeopardizing his position as leader.

Trump was correct in claiming that China backtracked on previously negotiated points. Xi was told to forget it.

Checkpoint Asia
Xi Was Ready for a Deal With Trump, But the Party and the Politburo Overruled Him
Katsuji Nakazawa

See also

Zero Hedge
Tyler Durden


Marko Marjanovic — Russia’s $30 Million Missile Corvettes Have Four Times the Weapons Range of US $2 Billion Destroyers and Cruisers

Russia is adding warships to its navy faster than the US. The reason for that is simple, while the US is pouring $14 billion into the USS Gerald Ford carrier the Russians are building corvettes. A class of warships between 500 and 1,000 tons.
Not only are they small, they are cheap. The newest class, Karakurt, sets back the Russian budget 2 billion rubles or just over $30 million at the exchange rates.
These sound like puny vessels, except here is the thing: they can hit an enemy surface ship from four times the distance a US destroyer (Arleigh-Burke) or cruiser (Ticonderoga) can.
Four different classes of corvettes are being built. Buyan-M-class of which 15 are planned and 10 are already serving. Steregushchiy-class of which 24 are planned and 6 are serving. Karakurt-class of which 18 are planned and one is already serving. And Gremyashchiy-class of which 4 are planned and 1 is already serving.
Except the Steregushchiy-class all these vessels may fire the Kalibr and the P-800 Onyx anti-ship missiles with the respective range of 660 and 600 kilometers. Steregushchiy carries a lighter Kh-35 missile with the range of “only” 300 kilometers.
Arleigh-Burkes and Ticonderogas fire the Harpoon anti-ship missile with the range of just 130 kilometers. Even if the US had heavier anti-ship missiles ready its primary “surface combatants” could not fire them because their multi-functional weapons cells would be too small to accommodate them. An Arleigh-Burke costs $2 billion, the older Ticonderogas cost $1 billion at the time they were built. Both classes displace around 10,000 tons....
On the cheap. And the corvettes are chiefly relatively short range (brown/green water) and defensive in perimeter rather than long range (blue water), offensive vessels like destroyers and cruisers, a chief mission of which is to serve in carrier groups to protect carriers.

The development of these vessel and missile types was one meaning of what Russia meant by "asymmetric response to threats."

China is using a similar strategy and so is Iran.

Check point Asia
Russia’s $30 Million Missile Corvettes Have Four Times the Weapons Range of US $2 Billion Destroyers and Cruisers
Marko Marjanovic

Warren Mosler — "Entweder wir glauben an die Demokratie oder nicht"


Die Zeit is somewhat similar to the NYT in the US in that it is centrist to left of center and intellectual. But it differs from the Time in not being considered the paper of record. It is published weekly rather than daily.

Die Zeit is a major venue and their publishing this article by Warren Mosler is a big step forward for MMT in Germany.

Die Zeit
"Entweder wir glauben an die Demokratie oder nicht"
Warren Mosler

Andrei Martyanov — Daniel L. Davis Hits It Out Of The Ball Park


Smackdown of US foreign and military policy and policymakers.

Reminiscence of the Future
Daniel L. Davis Hits It Out Of The Ball Park.
Andrei Martyanov

Timothy Taylor — Origins of "Microeconomics" and "Macroeconomics"


Some history of economics.

Conversable Economist
Origins of "Microeconomics" and "Macroeconomics"
Timothy Taylor | Managing editor of the Journal of Economic Perspectives, based at Macalester College in St. Paul, Minnesota

Stephanie Kelton — The Deficit Myth (Book)


Stephanie's new book is available for preorder. It should be a game-changer.

The blurb reads, "Deficits can be used for good or evil." "Evil?" Probably few people know that German economic development post Weimar and rearmament in preparation for WWII was engineered under Adolph Hitler by Hjalmar Schacht, head of the Reichsbank (German central bank). Hitler is often associated with the Weimar Republic that destroyed the Deutsche mark (DM). Nothing could be further from the truth. 

Under Hitler Germany rose from the ashes of WWI and the draconian settlement involving reparations that were designed to prevent the rise of another strong Germany in the center of Europe, ostensibly because Germany had caused the conflict (which history shows to be false). The retaliatory Treaty of Versailles led to German post-war collapse and the rise of Hitler and the Nazi Party. Hjalmar Schacht was instrumental in making this possible using his position and financial knowledge.

Schacht left the Reichsbank 1939, but remained a minister without portfolio until 1943. Nevertheless, he was tried and convicted at Nuremberg, and he served time for his contributions to German resurgence under Hitler and the Nazis along with his Nazi sympathies. The link provides a detailed summary of Schacht's operations while heading the Reichsbank.

The financial-economic plan that Schacht devised did not rely on deficits, since this would include bond issuance and be transparent to the world. Instead, he used a variety of financial techniques including overt money financing (OMF) without fiscal offsets, that is, direct payments by the central bank for government purchases to conceal what was really taking place.

While Schacht's plan was used to fund what the world considers as "evil," it demonstrated that as long as real resources are available, financing is no problem for a government whose central bank issues the currency. Such a government is self-funding. What this shows is that the "money power" can be used for good or for ill, wisely or foolishly.

As a result, some argue that the government must be prevented from self-funding because it may result in ill. That is to say, policy space must be restricted voluntarily in the case of a floating rate system or operationally by imposing a fixed rate system. It is an objection that needs to be addressed.

The Deficit Myth
The Deficit Myth
Stephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders

Bill Mitchell – Announcing – Foundation for Monetary Studies Inc.

It is Wednesday today and a blog-lite day. An announcement and a few videos only. But plenty to occupy your time if so inclined. I have an important announcement to make, a video of our Birmingham event (May 11, 2019) and some music from one of the best guitar players. Thomas Fazi and I also have an article coming out in The Tribune magazine soon in response to a rather unsavoury and silly attack on Modern Monetary Theory (MMT) by an ex-advisor to the British Labour Party. There will also be a longer version published here in the coming days – which contains more detail. But I have to finish the edits today! So with that said …
Announcing – Foundation for Monetary Studies Inc.
Today, I am formally announcing the – Foundation for Monetary Studies Inc. – aka The MMT Foundation.
Regular readers will know that this has been in the wind for some time. We have now completed all the legal steps to bring the MMT Foundation into operation.
We hope this will take our MMT-related projects forward and help more people understand our work and use that understanding to improve their nations down to their local communities....
Bill Mitchell – billy blog
Announcing – Foundation for Monetary Studies Inc.
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Tuesday, May 21, 2019

Pepe Escobar — Why capturing Huawei is no victory in tech war

Chinese firm is a queen on tech chessboard, but Beijing will just tell its whiz-kids to reach the next level….
Asia Times

RT — Huawei CEO says company’s own OS will run Android apps - reports


My, my. turns out that Huawei was not only making its own chips in anticipation of exclusion, but also preparing its own operating system. Obviously, native developers will create their own apps hosted in a Huawei store. This market is lost to US firms (think Google and Apple).

The decoupling of the US from China and end of Chimerica is leading to a new division of the global economy into blocs, on one hand, and on the other, to a push for national self-sufficiency and control the commanding heights of the economy and finance.

In other words, neoliberal globalization has reached its limit and is now beginning to unwind.

RT
Huawei CEO says company’s own OS will run Android apps - reports

Banikinkar Pattanayak — Indian Households Hold More Gold Than the World’s Top 10 Central Bank Holders Combined

This is nothing new. India households have always been holders of gold. Chinese households also have a preference for gold.

As India and China become more prosperous, this demand will likely increase.

Checkpoint Asia
Indian Households Hold More Gold Than the World’s Top 10 Central Bank Holders Combined
Banikinkar Pattanayak

Michelle Starr — Tomorrow The Definition of The Kilogram Will Change Forever. Here's What That Really Means

This is a big deal even though it won't be noticed by most people. However, precise measurement essential to science and measurement involves application of metrics defined by criteria. The units and their criteria are arbitrary. There was no such thing as a kilogram prior to the development and introduction of the metric system. Same with other measurement systems. The "trick" is to establish a constant criterion in a relative universe. That is as close to an absolute as human can construct. This post explains how the issue has been approached in physics.

Of course, a great deal more precision can be arrived at through physics than other science, which strive to use the measurements developed by physics in so far as possible, but physical measurement is applicable only to quantity. Measuring quality presents greater challenges. So do psychological "dimensions."

Science Alert
Tomorrow The Definition of The Kilogram Will Change Forever. Here's What That Really Means
Michelle Starr

Richard Murphy — Growth, MMT and the Green New Deal


Richard Murphy has been working on the New Green Deal over the last decade. In the second half of this post he provides an outline that is very useful in thinking about it.

Tax Research
Growth, MMT and the Green New Deal

Richard Murphy