tag:blogger.com,1999:blog-2761684730989137546.post5354150910581925750..comments2024-03-29T09:32:34.853-04:00Comments on Mike Norman Economics: TASS — Russia’s Central Bank cuts key rate to 7% for first time since 2014mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2761684730989137546.post-32747482597673851872019-09-07T19:32:55.548-04:002019-09-07T19:32:55.548-04:00The Bank of Russia has reduced the key rate to 7% ...<i>The Bank of Russia has reduced the key rate to 7% per annum for the first time since 2014 on the back of decelerating inflation, the regulator says on Friday.</i><br /><br />If Russia is like the ROTW, then only depository institutions, aka "the banks", may use its fiat* while the population is limited to using bank deposits. Not only is this unjust on its face, but it also makes sovereign spending more likely to cause price inflation since the demand for fiat is artificially decreased.<br /><br />The lesson for MMT advocates is that unless the banks are de-privileged, then sovereign spending for the PUBLIC welfare shall be limited by the price inflation caused by bank deposit creation for the PRIVATE welfare of the banks themselves and for the rich, the most so-called "worthy" of what is then, in essence, the public's credit but for private gain.<br /><br />Shorter: MMT advocates need to stop being bank toadies if they are truly seeking the general welfare.<br /><br />*except for mere physical fiat, coins and paper bills.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-81780298875670897762019-09-07T19:28:35.008-04:002019-09-07T19:28:35.008-04:00This comment has been removed by the author.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.com