STEM graduate from MIT exhibits the most sophomoric of cognitive reification errors and thinks Accounting abstractions are real:
Maybe should have taken some Accounting and Finance STEM electives…
Analogy doesn’t work… No forms of figurative language work…
This thing going viral on Truth Social with numerous likes….
19 comments:
Well if you try to buy a 5 billion dollar glass of tea for 2.5 billion, the seller might decide to dilute it...
^trillion
Isn't he correct, if real assets haven't kept pace with money supply? Of course, that may be a failure of Government policy rather than inevitable in the long term. Also, in a capitalist system, production capacity should increase to meet the increased demand caused by everyone having more money.
However, is there a study that proves that increased money supply has no effect on inflation, and thus disproves his point? If so, please post it.
I agree that supply chain disruption, sanctions and interest rate hikes are all major factors in the inflation that we're experiencing at the moment.
“Isn't he correct, if real assets haven't kept pace with money supply?”
This is just another figure of speech… “keep pace”
What is racing? Nothing..,
Try to make your point without resorting to figurative language…
CPI is up 6.4% YoY.. I have not used a figure of speech here…
I was intentionally speaking in general terms, about the general concept.
So called “money supply” (ie ANOTHER figure of speech ) is way down (they say) and these dumb fucks still day there is “inflation!”…
https://www.barrons.com/articles/m2-money-supply-federal-reserve-53c64103
“ M2 Money Supply Just Dropped the Most Ever. What That Says About the Fed’s Next Move.”
reported 4 days ago.,,
I guess it's important that we specify the type of inflation we're talking about; monetary inflation or price inflation. I'm talking about price.
Hasn't M2 dropped because the money is in the reverse repo facility, anyway? I think Mike spoke about this in a recent video.
https://fred.stlouisfed.org/graph/?g=10Lwt
“Hasn't M2 dropped because the money is in the reverse repo facility, anyway?”
Well then why are you asking if there is a study?
“ the type of inflation we're talking about”
Inflation is a figure of speech
You’re not getting it,,,
Here
https://en.wikipedia.org/wiki/Electronvolt
“ In physics, an electronvolt (symbol eV, also written electron-volt and electron volt) is the measure of an amount of kinetic energy gained by a single electron accelerating from rest through an electric potential difference of one volt ”
Do you think this dumb fuck Massie thinks these are real?
If so he should not have received his degree and MIT is way over rated..,
I have the same degree from a Land Grant…
I Don think any of these abstractions are real..
Here’s what’s happening:
#1 Massie is an unqualified dumb fuck..
He is trained in EE (as am I so fuck him he can blow me … I got thru it too so fuck him if he thinks his shit doesn’t stink he can kiss my ass.. ) …
#2 he is NOT trained in Finance and Accounting as I am in addition to my EE training…
I have substantial/extensive training in Finance and Accounting in addition to my BSEE…
He has no training in Finance and Accounting Science… he doesn’t understand them .. he has to reify the abstractions that are taught in those Science disciplines…
Same as all the Art degree morons who are trained in finger painting…
I don’t think an eV is real nor do I think a USD is real… I’m trained properly in both Science disciplines.,,
You've said everything except answer my question.
Arguing semantics is just a distraction. I'm sorry I'm not as educated in economics as you, and so don't know the correct terms. However, I still believe what I asked was perfectly clear.
The dollars still exist regardless of whether they're in the reverse repo. They're just excluded from the M2 data. It would explain why there's so much confusion, with so many believing that it's contracting for the first time in history. Maybe a little more goodwill between the MMT and monetarist tribes, rather than confrontation and obscenities, would help to bring them together.
Asset price inflation is of no concern to ordinary people.
"Maybe a little more goodwill between the MMT and monetarist tribes, rather than confrontation and obscenities, would help to bring them together."
That would be impossible since they believe in things that don't exist.
If I credit you with $100 into your account and you leave it there, how does that cause inflation? Leaving it there is what *has* to happen for that $100 to show up on a balance sheet. Otherwise taxation points would cause it to decrease and disappear as it changes hands.
Monetarists make a fundamental stock/flow error. They decompose Turnover into M and V. The problem is that you can't do that because you don't know at any point in time how much M is V ing. Therefore the decomposition is neither measurable, nor dynamically stable. And therefore is worthless as an abstraction.
In MMT we talk about monetary flows which are measured in denomination units per arbitrary time period.
To extend Matt's analogy we're interested in the energy actually extracted from the electron flow, not counting how many electrons there may or may not be in an electron cloud and then trying to divine how much energy there ought to be based on that guess.
“ I'm sorry I'm not as educated in economics as you”
I’m not educated in economics…
“ The dollars still exist”
No they don’t dollars do not exist…
There are USD balances in various accounts.., depository’s reserve accounts, the CBs RRP account, the Tsys TGA account, etc..
“ goodwill between the MMT and monetarist tribes”
I’m not in either tribe I have a Science degree…. those two adversarial theses are in the liberal Art academe that operates under the Socratic/dialogic methodology …
I don’t agree or disagree with monetarists I’m not going to argue with them…
I will just point out that from the Science perspective they are constantly making a cognitive error of reification of Scientific abstractions…
They think the abstractions (USD, account balances, etc) are REAL… so does Massie imo…
This should disqualify them from having anything to do with our materials systems administration and management…
They are all unqualified..
The main problem is the academic practices of these people that results in them making this continuous cognitive error…
They employ an inappropriate methodology (dialogics).,, that’s why the Science degree was established in 1860… to get away from the dialogics and instead train people to employ proper abstraction…
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