In general, I like Jim Cramer. I find him to be educated, enlightened and very entertaining. However, the comment he made this morning on CNBC, where he said that he could not take a "Spain-like-outcome" off the table when it comes to the United States, highlights just how deeply misinformed even the most highly regarded mainstream media pundits are when it comes to basic concepts about our economy. It is really, truly, eye-opening and frightening at the same time.
That Cramer would even consider lumping the United States in the same boat as Spain, when the former is a currency issuer while the latter is not, is sheer lunacy. It's absurd. No, it's worse, it's horribly, inexcusably, ignorant.
I do not for one second pretend that any of these people would even try to comprehend MMT. Believe me, I know--I've been doing TV for 18 years, with the last 10 spent at Fox and I've tried. Oh, how I've tried to get them to see the light. But we're not talking about making some quantum leap from the current, mainstream neoliberal view to a full-blown acceptance of MMT. All we're asking is that they acknowledge a very simple distinction that should have become absolutely, crystal clear after the comical U.S. downgrade by S&P last summer. Remember that? Yes, rates went DOWN...big time! The United States is not credit sensitive as an issuer of its own currency. When will these jerks get this through their thick heads?
Look, Cramer is no Rick Santelli. If anyone could understand this, it's him. He's a Harvard educated law school grad who worked at Goldman Sachs. For him to make a straight-faced comparison between the U.S. and Spain, especially in light of what we saw after the S&P downgrade last summer, is mind-boggling to me. I am having a hard time questioning his intelligence given his pedigree education, but he's giving me every reason to do so.
When I hear things like this it makes me think that it should be easy to make tons of money as an investor betting against these fools. Their views are based on nothing more than superstition and irrationality. Hell, it would seem that under those circumstances making a fortune should be as easy as taking candy from a baby. But then I am reminded of what the great, John Maynard Keynes once said: "The market can stay irrational a lot longer than most people can remain solvent."
Truer words were never spoken.