Warren Mosler, economist and one of the primary founders of Modern Monetary Theory (MMT), had a very interesting interview recently on “Straight Talk About Money” that is a must listen (click the link to listen). He was giving his thoughts on how we’re not headed in the right direction and what we can do to fix that. As usual, he gives very clear and concise descriptions about the monetary system, the economy and what the solutions should be for our woes.
One thing that particularly caught my attention was when he said (at about 37:37): ”Because We Think We Can Be The Next Greece, We’re Turning Ourselves Into The Next Japan”. This is exactly what is happening. We think the deficits are hurting us while it is truly the only thing keeping us from going into a deflationary spiral. We think we can default like Greece because of our inability to “pay back our debt”.
To add some illustrations to this quote (and some of Mosler’s other points), just take a look at the following charts and graphs.Read it at The Armo Trader
Warren Mosler: Because We Think We Can Be The Next Greece, We’re Turning Ourselves Into The Next Japan
(h/t Clonal in the comments)