An MMT site bringing you dogma-free economics without the pleadings of self interest
MMT was right again! And I give a special shout out to Warren Mosler! Check it out.
Your videos are always so God damned funny - and it's as if your tone was tailor-made to piss off the Austrians.
Yeah, you really nailed it Mike. You were dead right in 2006 when you said there was no housing bubble. http://www.youtube.com/watch?v=1G0tfb8ZefA Or what about Randy Wray calling commodities the biggest bubble of all time last year? Yeah, you guys are never wrong.
You guys weren't right about the Euro. In fact, most of you have been calling for Euro collapse saying that the countries should go back to their original currencies. Bill Mitchell and Randall Wray have both been saying this for years and they've been totally wrong about how this all would play out. Wray said the Euro "will fail" just last year. http://www.economonitor.com/lrwray/2011/11/16/euro-crisis-is-spreading-from-periphery-to-center-the-system-designed-to-fail-will-fail/How can you so arrogantly claim MMT "got everything right" when your main proponents got big ticket items wrong? Wray even claims that the Euro validates MMT somehow, but he has been totally wrong about how this would all play out. The Euro hasn't "failed".
Really? The Euro hasnt failed?Just because no one has left the Euro except Iceland doesnt mean the project as designed hasnt failed. It has failed miserably and Europe is a tempest in a teapot right now. MMT claimed that as long as the ECB writes the check there will be no defaults and that has been the case. When that stops the music will stop as no one else can write the checks. The Euro can "survive" as a currency as countries around it die but that is not success. It can survive AND fail.
@ Greg,Mike Norman is highlighting specific recent predictions about the Euro. Both Wray and Mitchell have explicitly stated the only viable solution is an orderly dismantling of the Euro. We all know the Euro isn't working, but they're saying it can't work no matter what. And they've both said on multiple occasions that it will fail and break-up. That's been totally wrong so far.
The euro hasn't "failed" in that it is still in existence but look at all the failed states it as resulted in, with the attendant social unrest. This is not sustainable socially, politically and economically. Either they go to a forced marriage or breakup. No way to kick the can down the road forever hoping that something will else will happen. And if this crisis doesn't do it, the next will.
@ Tom,That's all well understood. But Wray and Mitchell explicitly stated that the Euro would be "dismantled". They did not just say the economies would perform inadequately. They said the countries would revert to their old currencies and should do so sooner rather than later. They might ultimately be right, but so far they've been wrong.
Ridiculous, the rubber is hitting the road right now, with Germany considering a referendum and Germans resistant to change. So give it a while yet.It's not like the euro is secure without major revisions that basically involve a fiscal union with countries giving up political sovereignty as well as currency sovereignty, ie, basically a United States of Europe with the now nationally sovereign countries becoming "sovereign states" in a sovereign federation, as in the US. That would be a forced marriage unlikely to last long peacefully when begun on that basis, at least without an enormous amount of good will.
@ridiculousThose comments by Mitchell and Wray must be understood as opinions about how the politics will play out. If there is no fiscal unity or the ECB ever fails to write a check..... its over.... period. I think the countries would be better off with their own currencies unless they can start functioning as United States of Europe. Of course we are moving in a direction away from a USA so we might meet Europe in the muddle ..... er middle...... no muddle.
EZ is all peace and harmony eh http://www.telegraph.co.uk/finance/financialcrisis/9480990/Finland-prepares-for-break-up-of-eurozone.html
Given the state of Europe, I wouldn't say the Euro call has been wrong yet.Anyway, that's literally the least controversial call MMT has made. It's virtually the conventional wisdom now - outside of hopeless/brain dead politicians and "technocrats" on the continent - that the Eurozone will not survive. Mainstream American economists like Martin Feldstein have been saying it since the 90s.
Mike Norman: I apologize to you because a couple of weeks ago I posted on Warren Mosler's site that I thought that the both of you had done and an excellent job of describing the economy. I thought you might read what I said at his sight, but let me now tell you here that I have kept up with both of you for quite awhile now and you have a right to point out how well you have done. Excellent job.By the way, let me add Randal Wray, Bill Mitchel and all the contributors here at your blog onto the list. All of you are the top of the line. Thank all of you for your time and effort.
The Euro as designed has failed, clearly. Even holier-than-thou Germany has had to break the rules.If the rules are changed and the Eurozone structures are redesigned, then maybe it will cease failing so miserably in future. As for the housing bubble.. Mike got that one wrong, but others in the MMT camp didn't (Mosler, Wray).Such weak ammo you critics are using. It just bounces off. Maybe you should try using bullets that aren't made of condensed horseshit in future?
The Euro has failed economically as MMT accurately predicted. Nobody can predict what politicians will do.
Post a Comment