Saturday, June 1, 2019

Pamela Anderson: Assange Is a Scapegoat, Not a Criminal

The actress and activist writes about how she believes recently indicted WikiLeaks founder Julian Assange is being scapegoated for Trump’s election win.


Superbly written and very concise.

So you say Julian Assange interfered with U.S. elections? Well, then let me tell you the truth: This whole saga of “foreign intervention” is fundamentally absurd, and mainstream opinion painfully misguided. No one interfered with the right of voters to inform themselves freely, choose their own candidate, and make their vote count—not Julian, not WikiLeaks, and not even the Russians.
The elections have neither been rigged, nor have voters been intimidated or deceived by misinformation. The only thing that happened is that the disclosure of true information about a candidate‘s character and conduct hurt her campaign and may well have caused her defeat. So what? That’s democracy. Stop whining and grow up!I
The Daily Beast

Friday, May 31, 2019

Dialectic Method


Its a good idea to pay attention to the Methodology one is using... the Methodology itself may not be properly suited to the discipline one is trying to master...

Backgrounder on one 'Dialectic Method' here.

Dialectic or dialectics (Greek: διαλεκτική, dialektikḗ; related to dialogue), also known as the dialectical method, is at base a discourse between two or more people holding different points of view about a subject but wishing to establish the truth through reasoned arguments. Dialectic resembles debate, but the concept excludes subjective elements such as emotional appeal and the modern pejorative sense of rhetoric.[1][2] 
Dialectic may be contrasted with the didactic method, wherein one side of the conversation teaches the other. Dialectic is alternatively known as minor logic, as opposed to major logic or critique. 
Within Hegelianism, the word dialectic has the specialised meaning of a contradiction between ideas that serves as the determining factor in their relationship. 
Dialectic comprises three stages of development: first, a thesis or statement of an idea, which gives rise to a second step, a reaction or antithesis that contradicts or negates the thesis, and third, the synthesis, a statement through which the differences between the two points are resolved. 
Dialectical materialism, a theory or set of theories produced mainly by Karl Marx and Friedrich Engels, adapted the Hegelian dialectic into arguments regarding traditional materialism.

The Dialectic Method, perhaps better translated into the contemporary "Fisking" for us today; is properly suited to Artistic (non--material) disciplines only (music, literature, theater, haute couture, painting, sculpture, etc) ... for if you try to synthesize with a false or perhaps even just simply ignorant anti-thesis in material disciplines and you will end up blowing yourself up...

Probably 99.99% of the Economics discipline is operating under the Dialectic Method and accordingly the material result is the manifest shit-show we are watching every day ... a moron-fest goat rodeo...

Its NOT the discipline of Economics that is the problem, we often can see the discipline taking a lot of heat.. imo its unfair criticism of a discipline ... its rather the dominant dialectic methodology commonly used within that discipline that is fucking everything all up...


Magpie — Getting all Tied Up (4)


Mag[ie continues to fisk Paul Mason on Marxism and MMT.

Magpie's Asymmetric Warfare
Getting all Tied Up (4)
Magpie

Richard Wolff: Empire Files - Debunking Jordan Peterson’s “Cultural Marxism” with Richard Wolff

When I first came across the term "cultural marxism" I thought, what a load of nonsense! There it's no marxism in identity politics, so it's just a smear.

BTW, Peter Jordon suffers from chronic depression and is on two different antidepressants. In a video I watched, he described how he has suffered terribly in the past. On that level I feel sorry for him. But I'm surprised it hasn't given him more empathy.




China prepares to strike back at US as Huawei suffers another loss

The trade tension between the United States and China looks set to intensify soon, as the latter country is taking steps to respond to the American ban on doing business with Huawei. Bloomberg reports that China has put preparations in place to restrict exports of rare earth minerals to the US, while also setting up its own “unreliable entities” blacklist for unfavorable foreign companies. At the same time, Japan’s SoftBank has announced it’ll be building its 5G network with equipment from Nokia and Ericsson, snubbing Huawei, which had been a 4G supplier for the large mobile carrier.
The rare earths export restriction looks to be an act of saber rattling for now. The leadership in Beijing is signaling that it’s ready and willing to deploy this severe measure, but, according to Bloomberg, that’s only in the event that the trade war between China and the US deepens. Neodymium is one of the most recognizable rare earths, as it’s widely used in magnets. You’ll have seen it advertised on the spec sheet of your headphones, most likely, and there’s a broad consensus among economists and international trade observers that US companies have no good alternative sources for it outside of China.
The Verge 

Frank Li — Is President Trump Losing It?

Yes, he is losing it - the ability to govern as the President! The most recent example: he lost his temperament, totally, in response to the Mueller TV appearance, on top of having lost all the four games in the major league (President Trump's Major League Score: 0:4). He will continue to lose in the coming weeks and months.
No, he is not losing it, because he has never had it!...
Frank Li is out of paradigm with MMT, but he is an interesting social and political analyst even though his understanding of economics is off, displaying deficit and debt phobia.

econintesect.com
Is President Trump Losing It?
Frank Li | Chinese ex-pat, Founder and President of W.E.I. (West-East International), a Chicago-based import & export company, B.E. from Zhejiang University (China) in 1982, M.E. from the University of Tokyo in 1985, and Ph.D. from Vanderbilt University in 1988, all in Electrical Engineering

See also
While Prime Minister Abe has refused to clarify his reasoning for the nomination, a February 17 article in Japan’s Asahi newspaper reported that the U.S. asked Japan to put Trump’s name forward. Trump has confirmed that Abe nominated him in a “beautiful” five-page letter.
Other world leaders might have turned down that request. But Abe needs U.S. support to achieve many economic, political and foreign policy goals. From my perspective as a Kyoto-based scholar of Japanese politics, nominating Trump for a Nobel Peace Prize is, for Abe, more sensible than it might seem....
The Conversation
Trump for the Nobel Peace Prize? Japan’s nomination is part of a strategic plan
Chris G. Pope | Researcher, Kyoto Women's University

Should have listened to the bank lobbyists


They should have got this done last week (story from May 22) as recommended now comes the real chaos they were trying to avoid by getting it done...

Science:  Instability creates instability.

(Morons:  Stability creates instability.)




Inversion going on 7 days:

Pump-a-Chump


You've heard of Ali's  "Rope-a-Dope!" now we have "Pump-a-Chump!"...

Trump triggered hacker China still "pumping!"





Thursday, May 30, 2019

Jonathan Woetzel and Jeongmin Seong — For all the hubbub about the US-China trade war, trade is a fraction of China's economy

As recently as 2008, China’s net trade surplus accounted for 8% of GDP; by 2018, that figure was only about 1.3%—less than either Germany or South Korea, where net trade surpluses generate between 5% and 8% of GDP. The US isn’t far behind its Eastern neighbor: In 2018, US had a trade deficit of about 3% of GDP, down from 5% in 2006....
Instead, China’s economy today is driven by domestic consumption. In 11 of the 16 quarters since 2015, consumption has contributed more than 60% of GDP growth. In addition to becoming the world’s biggest market for online retail, the country now represents more than 30% of global market in luxury goods, automotive, consumer appliances, mobile phones, and spirits....
Quartz (May 6)
For all the hubbub about the US-China trade war, trade is a fraction of China's economy

Andrew Batson — Is state ownership turning into a core interest for China?


Is the Trump administration's policy toward China having the opposite effect and strengthening the hardline opposition and increasing populist nationalism, as well as preventing a mutually satisfactory solution in that any solution acceptable to the US would be seen in China as an unthinkable humiliation and loss of face? How not to negotiate 101?
Which is unfortunately why it is now seems hard to be optimistic about the politics on either side.
What seems to be happening is not only a decoupling of Chimerica, but also a bifurcation between the East and West-Global North and South, effectively ending neoliberal globalization without war. In fact, there is a lot of evidence to suggest that war has already commenced although kinetic warfare is as yet limited.

Randy Wray — How to Pay for the Green New Deal

How to Pay for the Green New DealWORKING PAPER NO. 931 | May 2019 
This paper follows the methodology developed by J. M. Keynes in his How to Pay for the War pamphlet to estimate the “costs” of the Green New Deal (GND) in terms of resource requirements. Instead of simply adding up estimates of the government spending that would be required, we assess resource availability that can be devoted to implementing GND projects. This includes mobilizing unutilized and underutilized resources, as well as shifting resources from current destructive and inefficient uses to GND projects. We argue that financial affordability cannot be an issue for the sovereign US government. Rather, the problem will be inflation if sufficient resources cannot be diverted to the GND. And if inflation is likely, we need to put in place anti-inflationary measures, such as well-targeted taxes, wage and price controls, rationing, and voluntary saving. Following Keynes, we recommend deferred consumption as our first choice should inflation pressures arise. We conclude that it is likely that the GND can be phased in without inflation, but if price pressures do appear, deferring a small amount of consumption will be sufficient to attenuate them.
New Economic Perspectives
How to Pay for the Green New Deal – Levy Institute
L. Randall Wray | Professor of Economics, Bard College

Links — 30 May 2013

Why Barr’s investigation is important and should be encouraged.
The Nation
How Did Russiagate Begin?
Stephen F. Cohen | Professor Emeritus of Russian Studies, History, and Politics at New York University and Princeton University

I don't buy for a second all those Russian-China economic "integrationism" arguments, despite obvious attempts by China and Russia to form some sort of common Eurasian market. Russia and China are neighbors and economic... competitors. But, right now many Russian-Chinese broad economic, social, scientific and military contacts make total sense in a face of unruly and ungovernable United States. In fact, those are only natural. Yet, there is one item on Russian-Chinese agenda which sets Russia apart from everyone else for China....
China is yet to make a full claim to real superpowerdom and for that she needs Russia and her immense military potential, capable to defend most of Eurasia against any attempt. China doesn't have such capability and so the dance between comrades Putin and Xi continues....
The video clip at the end is the entry of the SU-57 into serial production.

Reminiscence of the Future

Humorous but not satire.

Russia Observer
RUSSIAN FEDERATION SITREP 30 MAY 2019
Patrick Lawrence

Not satire either. Eye-roller.

Ars Technica
US Department of Energy is now referring to fossil fuels as “freedom gas”

Megan Geuss
Move over "freedom fries" of failed Iraq War fame — this isn't even "Not the Onion" territory.

All roads lead to John Brennan.

Intel Today
Spygate — Former CIA Station Chief Explains Resignations From 6 Deputy Directors of Italian Intelligence Agencies
Ludwig DeBraecheleer
As predicted, Putin’s popularity takes a nosedive.
This fact is not often discussed in the West, but the popularity of Vladimir Putin is in decline and has been so ever since, following his reelection, he kept more or less the same (already unpopular) government while that government very clumsily attempted to “sneak by” undetected a pension reform. Now the latest numbers are in, and they are not good: only 31.7% of Russians trust Vladimir Putin, that is his worst score in 13 years! His score last year was 47.4% (by the way, Shoigu got only 14.8%, Lavrov got 13%, and Medvedev got 7.6%. These are terrible scores by any measure!)
I have been warning about this for a while now (see here, here, here, here, here, here and here), and we now can try to understand what happened....
The Unz Review
Prospects for the Emergence of a Real Opposition in Russia
The Saker


Stephanie Kelton — Modern Monetary Theory Is Not a Recipe for Doom


In this post, Stephanie Kelton takes on Paul Krugman. She appears to agree with Paul Krugman's assumption that monetary policy that is built on raising interest rates to address inflation is not backwards. Actually, central bank interest rate setting is a form of price setting, the policy rate being a variable that sets the cost of borrowing (price of money). Higher interest rates are also inflationary to the degree that increase the income of holders of securities, as Warren Mosler has observed.

Instead she addresses the interest rate simply as a policy variable under central bank control, so the central bank can always insure that "r" is less than "g" to prevent interest on government debt from growing faster than the economy. While that is true, wouldn't it be preferable to show how Krugman's assumption about monetary is more fundamentally mistaken.  This is especially germane since it is not just Krugman's mistake. It is the most commonly held assumption.

Note that Stephanie Kelton does mentions the expansionary impact of higher interest rates directly to Krugman in Paul Krugman Asked Me About Modern Monetary Theory. Here Are 4 Answers. However, it is mentioned in passing rather than being elaborated, as it really need to be in order to finally bury monetarism in any form, strong or weak.

Stephanie Kelton finally addresses this point in another response to Krugman, The Clock Runs Down on Mainstream Keynesianism.

My suggestion is for the MMT economists to put together an elevator speech on this, along with a more complete explanation that is accessible to non-economists and a tightly argued paper for economist and financial types. It's all there in the MMT literature but it needs to be more tightly co-ordinated.
Stephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders

Tomonews - Leaked OPCW report finds Douma chemical attack likely staged -

Articles in the mainstream media had described how helicopters probably dropped the chemical weapons, but a leaked OPCW document said they were brought in by hand.

The mainstream media has said nothing about this document. I would have thought that it was news, wouldn't you?



DOUMA, SYRIA — A leaked document is casting doubt on the official narrative of the 2018 Douma gas attacks which were later used to justify American, British and French airstrikes on Syria.

Alexei Kupriyanov — Towards Strategic Autonomy of India: Narendra Modi Continues His Economic and Social Reforms

The national elections in India have brought victory to the National Democratic Alliance (NDA) coalition, led by the Bharatiya Janata Party (BJP). The NDA has won a stable majority in the lower house of parliament. This means that the right-wing coalition will remain in power for at least another five years, and Prime Minister Narendra Modi will be able to continue his economic and social reforms, as well as be able to operate with a free hand in the international arena.
India takes a hyper-nationalist (Hindutva dominated), neoliberal (neo-fascist*) turn to catch up in the global race in order to assume its rightful place as one of the largest and most advanced countries. 

Absolute GDP as a measure of development in addition to growth is largely determined by population size and productivity. India, with a billion plus population, now aims to increase its productivity to rival China and eventually overtake the US, which has high productivity but a less numerous population than India and China. 

In fact, it is this dynamic that is driving the historical dialectic on the grand scale, with Europe desperately trying to unite as a social, political and economic bloc to prevent being eaten by larger predators.

I would look at this as late-stage capitalism economically as the emerging world seeks to mirror the success of the developed world using developed world ideas. This creates a dialectic as an oppositional interplay between traditionalism, which is country or region specific, and liberalism, which is Western, in an environment in which the West assumes that domination is its natural place in the order of things and that liberalism is the only way to progress. 

Getting interesting watching the internal oppositions/contradictions (Widersprüche for Marx) manifest, often as antagonisms.

Valdai Analytics
Towards Strategic Autonomy of India: Narendra Modi Continues His Economic and Social Reforms
Alexei Kupriyanov

*What do I mean by "neo-fascist"? 

Neoliberalism is a political theory that views government as an ally of capital with labor (people) and land (the environment, the commons) considered as means to that end, progress being measured by economic growth. 

Alexander Dugin has pointed out that there are four political theories that have been contending for the past century — liberalism, fascism, communism and traditionalism. He views fascism and communism as declining, and liberalism and traditionalism rising.  The only purely communist country left is North Korea, China and Cuba both having introduced liberal reforms if not liberalism itself. He believes that fascism died out as a result of WWII. 

I think it is premature to write of either fascism or communism. One can instead view China as modernizing Marxism-Leninism rather than giving it up. Neither Marx nor Lenin were static thinkers and they would probably agree that their ideas should not be treated as dogma but in terms of their being representative of "moments" in the historical dialectic. China is rising and its system in competing quick well in a hostile world, thank you.

I am increasingly convinced that neoliberalism is combination of liberalism and fascism, similar to the way China is combining communism and liberalism. Neoliberalism is a political theory that views economic liberalism ("capitalism") as the driver of social and political liberalism ("liberal democracy"). Social and political liberalism as liberal democracy follow from economic liberalism that delivers prosperity. Classical economic liberalism (laissez-faire) was about terminating the dominant role of government under feudalism. This was complete by the end of WWI and the displacement of monarchy and aristocracy as the dominant form of governance in Europe.

But then the ruling elites realized that since capitalism meant favoring capital (property ownership) over the other factors of production, labor (people) and land (the environment and the commons), "progress" could be fostered and promoted by allying capital with governance. 

Mussolini and Gentile viewed fascism as the merger of state and corporate power. This is what neoliberalism aims at, with the state captured by the ruling elite as the most qualified to govern, and under neoliberal globalization not only the nation but also the world. The reality is that neoliberal globalization has been advanced by international organizations and technocrats at the expense of liberal democracy nationally since there is no accountability.



Joseph Stiglitz - Neoliberalism must be pronounced dead and buried. Where next?

For decades the US and others have pursued a free-market agenda which has failed spectacularly


Joseph Stiglitz described how horrible neoliberalism is, which is about rent seeking, monopoly power, and corporate control of governments.

By contrast, the third camp advocates what I call progressive capitalism, which prescribes a radically different economic agenda, based on four priorities. The first is to restore the balance between markets, the state and civil society. Slow economic growth, rising inequality, financial instability and environmental degradation are problems born of the market, and thus cannot and will not be overcome by the market on its own. Governments have a duty to limit and shape markets through environmental, health, occupational safety and other types of regulation. It is also the government’s job to do what the market cannot or will not do, such as actively investing in basic research, technology, education and the health of its constituents.

The Guardian

FDIC Quarterly Banking Review Q1


Solid report out link to .pdf here.


The aggregate net income for the 5,362 FDIC-insured commercial banks and savings institutions totaled $60.7 billion in first quarter 2019, an increase of $4.9 billion (8.7 percent) from a year ago. 
During the three months ended March 31, equity capital of $2.1 trillion rose by $36.9 billion (1.8 percent). 
Retained earnings in first quarter 2019 totaled $22.1 billion and dividends paid rose to $38.6 billion, an increase of $7.9 billion (25.9 percent). 
Total assets increased by $147 billion (0.8 percent) during the first quarter.


They are increasing retained earnings by about a $85b annual rate which will enable an increase in risk assets (loans) of about $600b. ($85b/0.14 Risk-based Capital Ratio)

Mike has the leading Treasury net withdrawals up $219.5 bln over last year and growing at 6.97% YoY creating necessary growth in incomes to enable this pretty decent growth in credit.


Wednesday, May 29, 2019

Bill Mitchell — Talking of elephants–plain old, garden variety fiscal policy

If there were two lessons that can be taken from the GFC among others then we should know, once and for all, that, first, monetary policy (in all its glorious forms these days) is not a very effective tool for influencing the level of economic activity nor the price level, and, second, that fiscal policy is very effective in manipulating total spending and activity. Of course, those lessons provided the evidence that turned macroeconomics on its head because for several decades, as the Monetarist surge morphed into all manner of variants, tried to eulogise the primacy of monetary policy and rejected the use of fiscal policy. There were all sorts of justifications – time invariance, lags, politicians cannot be trusted, etc – but at the heart of the shift towards supposedly independent central banks was the political desire to neuter the capacity of governments to use their currency capacity to advance the well-being of the many, while at the same time, using that same capacity to advance the interests and real income shares of the few. Depoliticisation worked a treat for the top-end-of-town. The problem is that the lessons have not been learned and all manner of commentators still think that monetary policy is the king. Eventually, we will move beyond that but the pain of holding on to the myth is damaging for people, especially those who are without work, are underemployed or have been forced into early retirement by the poor economic performance in this austerity-biased era.…
Bill Mitchell – billy blog
Talking of elephants – plain old, garden variety fiscal policy
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Links — 29 May 2013

Expanding on his recent threads discussing the somewhat ominous endgame of the US-China tensions, Bridgewater CEO Ray Dalio explains in his latest note that this conflict is much more extensive than a “trade war.”
Zero Hedge
Dalio Warns Of "Risky Time As US-China Conflict Is "Much More Than A Trade War"
Tyler Durden

Meanwhile, in China, President Xi was busy exhorting the rest of the world (presumably excluding the US) to cooperate with Beijing in developing new Internet, big data and artificial intelligence resources in a letter to the China International Big Data Industry Expo, which kicked off Sunday in the southwestern city of Guiyang, according to state-run business newswire Xinhua.
Zero Hedge
President Xi Invites World To Join China In Building New Internet
Tyler Durden 
Provoking trade disputes is “naked economic terrorism”, a senior Chinese diplomat said on Thursday, ramping up the rhetoric against the United States amid a bitter trade war that is showing no signs of ending soon.
Reuters
Taking aim at U.S., China says provoking trade disputes is 'naked economic terrorism'
Ben Blanchard
Secretary of State Mike Pompeo kept up U.S. pressure on Huawei Technologies Co Ltd on Wednesday, saying the Chinese tech giant takes orders from Beijing.
Reuters
U.S.'s Pompeo says Huawei is an 'instrument of Chinese government'
Indeed, with the constant chatter nowadays about the forces and impact of globalisation, one might have imagined that armchair analysts would have caught up and noticed the extent to which their cherished models of China might need to change, too. Yet when the West examines China, there seems to be a failure to note the obvious – that our understanding of China is shaped not just by the nature of China today, but by the nature of the West, too.

A confident and purposeful West, for instance, will see China in a very different way to a West that is insecure, confused or directionless. It might see China as a source of opportunities rather than a constant threat. The truth – as in many things – will lie somewhere in between. Before looking at China, then, it is essential to understand how much has changed in our own Western backyards over recent decades.
spiked
Bill Durodié
More US sanctions in the works as Beijing defies Trump by ramping up subsidies — this war is only just getting started.
Forbes
Washington Preparing to Throw the Kitchen Sink at China
Kenneth Rapoza
Huawei should roll out a Google-free Android fork the EU is hoping for
Bloomberg Opinion
US Huawei Ban May Force It to Challenge Google’s Control of the Android Universe
Leonid Bershidsky
The US Army’s general staff has paid the RAND think-tank in California to devise a brand new plan of attack against Russia. The plan was released a month ago, on April 24. The new idea is Operation SWARM – that means throwing everything the US can think of at Russia.
Dances with Bears
SWARM – THE RAND STRATEGY OF DESPERATE US MEASURES AGAINST RUSSIA
John Helmer
Referring to China’s steady economic development and international influence the media outlet [Global Times ] claimed that “no country, including the US, can revamp the world order without China,” and suggested that it was far more probable that Washington would finally isolate itself while trying to crack down on Beijing.
Defend Democracy Press
Kissinger’s ‘Secret Ploy’: Why Russia Won’t Become US’ ‘Hammer’ Against China

Andrei Martyanov — You Can Not Fix Stupid (In Terminal Stage)


Andrei Martyanov fisks the latest "competitiveness" ratings and adds his own. (Quotes Michael Hudson, too.)

Reminiscence of the Future
You Can Not Fix Stupid (In Terminal Stage)
Andrei Martyanov

Fiona Scott Morton — Modern U.S. antitrust theory and evidence amid rising concerns of market power and its effects

Overview
The experiment of enforcing the antitrust laws a little bit less each year has run for 40 years, and scholars are now in a position to assess the evidence. The accompanying interactive database of research papers for the first time assembles in one place the most recent economic literature bearing on antitrust enforcement in the United States. The review is restricted to work published since the year 2000 in order to limit its size and emphasize work using the most recent data-driven empirical techniques. The papers in the interactive database are organized by enforcement topic, with each of these topics addressed in a short overview of what the literature demonstrates over the past 19 years....
Literature review.

Richard Murphy — Fisking Martin Wolf on modern monetary theory

I suspect Wolf chose to get this wrong, deliberately. His narrative does not work if he noted correctly what MMT said.
But his real disagreement is that whilst MMT is correct (subject to his own misconceptions) he thinks the policy implications are wrong.
Nice smackdown, if a smackdown can be considered nice.

Richard Murphy concludes:
Wolf has conceded MMT is right. Now he needs to accept the consequences. Including that democracy by and for the people should prevail.
To this I would add that representative democracy can only work if the electorate and the those they elect to represent them are properly informed. In a society in which wealth, influence, power and knowledge are unevenly distributed, with the top enjoying a disproportionate share of these, political outcomes will be biased in that direction.

Those at the top will therefore do what is in their considerable power to maintain the status quo by controlling the narrative. The narrative is now shifting with understanding of MMT proliferating to the extent that VSPs can no longer retain their credibility by denying the evident. Therefore, the narrative is beginning to shift away from attacking MMT. after having failed with ignoring it, toward blunting it. This can be read as the social and political subtext of Martin Wolf's piece, which is ostensibly chiefly economic and financial.

Tax Research UK
Fisking Martin Wolf on modern monetary theory
Richard Murphy | Professor of Practice in International Political Economy at City University, London; Director of Tax Research UK; non-executive director of Cambridge Econometrics, and a member of the Progressive Economy Forum

Fall Guys


Looks like the fall guys for the current interest rate chaos... nothing they could do about it... major systemic regulatory policy changes needed pronto... everybody there unqualified...




China still pumping!


Hacker USD zombie China still "pumping in money!" producing their best knockoff of Japan ... and nice description of this continuing central bank reification error via metaphor from these unqualified journos... "pump in the cash!"...




This in contrast to the US Fed at least starting to examine Reserve levels as they think it relates to maintenance of their interest rate policy while the curve is inverting; baby steps...

Once the US figures it out then Japan and China can hack it... may take a while though...

In the mean time, pump it up!!!!






Chunky Mark - ‪Jeremy Corbyn is 45 minutes from No.10 Downing Street 😱‬



Chunky Mark (The Artist Taxi Driver) may seem crude but he asking for what millions of people want, perhaps the majority. How can we afford it people will ask, but MMT shows a way.

I don't know why more people don't vote for this, and it can only down to the propaganda? The bad press that Jeremy Cornyn has had an effect, so now many people think he is an anti -semitic, like Hitler was. What a joke?

The anti-war Jeremy Corbyn is now the bad guy because he is not the  man of the ruling elit. But he is the man of the people and they are Britain, not the few psychopaths that rule over us, who are traitors to the British people.




Tuesday, May 28, 2019

Patrick Lawrence: The US-China Decoupling


Smoot-Hawley redux? Markets may already be discounting this.

Strategic Culture Foundation
Patrick Lawrence: The US-China Decoupling
Patrick Lawrence

Jeff Cox — The next downturn could see a 'radicalization' of the policies used during the financial crisis


In the next iteration of the financial crisis, there will be a more widely distributed response than the first, where only the wealth and well-connected were served. That produced a backlash that is still operative.

CNBC
The next downturn could see a 'radicalization' of the policies used during the financial crisis
Jeff Cox

Martin Wolf — States create useful money, but abuse it


Useful critique of MMT. Martin Wolf at least took the time to read Randy Wary's Modern Money Theory. His areas of agreement with MMT are mostly factual, whereas his criticisms appear to be mostly opinion. In addition, he is unaware of what some of the other MMT economists have written about his areas of concern.

Most seriously, his solution is more technocracy, which ignores the agency problem.

But worth a read.

Financial Times
States create useful money, but abuse it
Martin Wolf

Antony P. Mueller — The Neo-Marxist Roots of Modern Monetary Theory


The post is interesting from the POV of history of economics. Antony P. Mueller points out how MMT owes more to Kalecki than to Keynes. His criticism of MMT goes astray in assuming the conventional economic view of debt-financed fiscal deficits crowding out private sector productive investment. MMT shows how this assumption is erroneous in that the net spending after taxes injects the exact amount of bond issuance in offset. It's the spending that funds Treasury security issuance. 

In central bank auctions of  government bonds the primary dealers act as the designated market makers, and their purchases drain the reserve add that was created by deficit spending from bank reserve balances at the Fed into security accounts at the Fed, much the same as deposit accounts in banks are drained into CD's. The total amount of the reserve add is used to settle the auction, draining the mnetary base of the reserves in injected by the deficit spending. All that changes is the maturity. MZM (money of zero maturity) becomes money of non-zero maturity.

There is no crowding out of private investment. The assumption that bond sales are funded by a stock of loanable funds for which government competes with the private sector is wrong. That is not the why the existing system works.

Nevertheless, the post is still a worthwhile read from the POV of history of economics, although one should not assume that the summary of Keyes, Kalecki and their use by MMT economics is entirely correct, for example, whether Kalecki held a labor theory of value is controversial.

Mises Wire
The Neo-Marxist Roots of Modern Monetary Theory
Antony P. Mueller

Robert Heilbroner — The Embarrassment of Economics: Weekend Reading


Robert Heilbroner hits it out of the park in this short article, originally a speech. It's a fun read, too.

Grasping Reality
Robert Heilbroner (1996): The Embarrassment of Economics: Weekend Reading
Brad DeLong | Professor of Economics, UCAL Berkeley