An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
California’s contributions to its teachers’ pension fund are projected to almost triple https://t.co/yIT7wtTpZ1 pic.twitter.com/RWcIxkehwm— Bloomberg Markets (@markets) February 6, 2017
California’s contributions to its teachers’ pension fund are projected to almost triple https://t.co/yIT7wtTpZ1 pic.twitter.com/RWcIxkehwm
Positive yielding sovereign debt is welfare proportional to wealth. If California retirees need welfare we should just give it to them via a BIG or UBI and we can help "finance" it with negative interest on inherently risk-free sovereign debt with the most negative interest on "reserves"* at the FED beyond a, say, $250,000 individual citizen limit.There's a way to straighten out this mess via ethics and I suggest we do so before it's too late.*a euphemism for private sector account balances at the central bank in the case of banks, etc.
They dont need "welfare" they have a contract... unfortunately a contract with morons....
When negative rates on new sovereign debt are imposed (as they should be) then existing sovereign debt will be more valuable.
Post a Comment