Thursday, June 20, 2024

Watch this Movie — Bethesda 1971

The Daily Kos is influential "on the left." This is good review of "Finding the Money" and hopefully it will wake more folks up to the fact that affordability is not the issue but rather the availability of real resources.

Daily Kos
Watch this Movie
Bethesda 1971

Wednesday, June 19, 2024

Everything you want to know about MMT — Lars P. Syll

One of the positive contributions of MMT, especially from a European point of view, is that it makes it transparently clear why the euro-experiment has been such a monumental disaster. The neoliberal dream of having over-national currencies just doesn’t fit well with reality. When an economy is in a crisis, it must be possible for the state to manage and spend its own money to stabilize the economy.
Lars P. Syll’s Blog
Everything you want to know about MMT
Lars P. Syll | Professor, Malmo University

Thursday, June 13, 2024

Print Money in Structured Manner to Plug Deficit Instead of Raising Taxes, Economist Tony Mwiti Advises Kenyan President William Ruto — Muyela Roberto

MMT without naming it.

Tuko (Kenya)
Print Money in Structured Manner to Plug Deficit Instead of Raising Taxes, Economist Tony Mwiti Advises Kenyan President William Ruto
Muyela Roberto


Trump floats concept of eliminating the income tax and replacing it with tariffs

 

Even libertarian douchebag and alleged STEM degree Massie on board….  Would need a big GOP sweep to get it passed….

I guess the tax elimination is going to over ride the debt doomsday thesis of these libertarian morons in their pea brains….  Hard to understand how their brains work….

I’d  take it…  we could get rid of the tax but they would still be stupid…

Can’t have everything…

👍



Wednesday, June 12, 2024

IMF: Dollar’s "stealth erosion" in global reserves by other currencies—Serkan Arslanalp, Barry Eichengreen, Chima Simpson-Bell

Taking a longer view, over the last two decades, the fact that the value of the US dollar has been broadly unchanged, while the US dollar’s share of global reserves has declined, indicates that central banks have indeed been shifting gradually away from the dollar.
BNE
IMF: Dollar’s "stealth erosion" in global reserves by other currencies
Serkan Arslanalp for the IMF, Barry Eichengreen, Chima Simpson-Bell


Friday, June 7, 2024

MMT — the key insights — Lars P. Syll

As has become abundantly clear during the last couple of years, it is obvious that most mainstream economists seem to think that Modern Monetary Theory is something new that some wild heterodox economic cranks have come up with. That is actually very telling about the total lack of knowledge of their own discipline’s history these modern mainstream guys like Summers, Rogoff and Krugman have.

New? Cranks? Reading one of the founders of neoclassical economics, Knut Wicksell, and what he wrote in 1898 on ‘pure credit systems’ in Interest and Prices (Geldzins und Güterpreise) soon makes the delusion go away….
Lars P. Syll’s Blog
MMT — the key insights
Lars P. Syll | Professor, Malmo University

Monday, June 3, 2024

Senior mainstream economist now admits central banks are not as independent as many believe — Bill Mitchell

The UK Guardian published quite an odd article the other day (May 30, 2024) by Mr GFC Spreadsheet Fudge Man Kenneth Rogoff – Why policymakers are more likely to risk high inflation during periods of economic uncertainty – which essentially claims that economic policy has been conducted for several years by institutions that do not meet the essential requirements that are specified by the mainstream New Keynesian macroeconomic approach, upon which the institutions have claimed justification. If that makes sense. He now claims that the eulogised principle of ‘central bank independence’, which is a mainstay of the New Keynesian justification that macroeconomic counter stabilisation policy should be left to monetary authorities and that fiscal policy should play a supporting but passive role, no longer exists as policy makers have had to come to terms with multiple crises. Of course from an Modern Monetary Theory (MMT) perspective such independence never existed and was just a ploy to allow the governments to depoliticise economic policy making and thus distance themselves, politically, from the fall out of unpopular policy interventions. If it wasn’t the IMF to blame, then it was the ‘independent’ central bank for austerity and interest rate hikes and all the rest of it. Now we have a senior Harvard professor admitting it was a ruse and bemoaning the fact....
William Mitchell — Modern Monetary Theory
Senior mainstream economist now admits central banks are not as independent as many believe
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW,

See also

Lars P. Syll’s Blog
The deficit myth
Lars P. Syll | Professor, Malmo University

Saturday, June 1, 2024

Odd posts from Warren Mosler claiming "crowding out."

Odd "X" posts from Warren Mosler recently talking about "crowding out." He says business investment is "crowding out" personal consumption. This is an odd claim because crowding out is not a condition that would be claimed under MMT understanding, where money is a function of demand and where there is no theoretical limit to its creation. (Under a free-floating FX regime.)

If business spending rises and personal consumption falls, so what? All that is, is a shift in the cohort doing the net spending. The economy may look a little different (factories getting built rather than expenditure on consumer goods, leisure, etc), but why is that a concern and how does he conclude, necessarily, that this is the reason for an economic slowdown?

It's wrong and it misses the main point which is the fact that the slowdown in the economy is coming from a decline in net government transfers (i.e. the "deficit") because "reverse stabilizers" are kicking in. (Tax deposits are rising faster than Treasury withdrawals.)

He ought to know this. 

Thursday, May 30, 2024

In Defense Of Deficits — Steven Desmyter

I invited Stephanie Kelton to speak at our Man Alternative Investment Symposium in Oxford in 2021. Kelton was Bernie Sanders’s economic advisor and a leading proponent of Modern Monetary Theory (MMT), a neo-Keynesian movement that asserts that there ought to be no theoretical limit to a country’s ability to borrow, providing that it is in control of its own currency. Kelton and Sanders were near-perfect exemplars of the kind of “fiscal irresponsibility” (as their opponents would see it) that Conservatives (and, indeed, conservatives) like to hold out as a warning. Joe Biden, resolutely of the center, friend to the markets and the banks, was able to position himself as a far more rational and responsible alternative....
Forbes
In Defense Of Deficits
Steven Desmyter, President of Man Group

Government debt fears – more fiction from the mainstream media — Bill Mitchell

After all these years of trying, the insights provided by Modern Monetary Theory (MMT) still haven’t cut through. One doesn’t even need to accept the complete box of MMT knowledge to know that, at least, some of it must be factual. For example, how much brainpower does a person need to realise that a government that issues its own currency surely doesn’t need to call on the users of that currency in order to spend that currency? Even if we could get that simple truth to be more widely understood it would change things. But every day, economists and journalists, that just give platforms to the economists write and say things that demonstrate even that simple understanding of the monetary system fails them. Are they stupid? Some. Are they venal? Some. What other reason is there for continuing to use major media platforms, which give the author a massive privilege in terms of influence and reach, to pump out fiction masquerading as informed economic commentary? And the gullibility and wilful indifference of the readerships just extends the licence of these liars. Some days I think I should just hang out down the beach and forget all of it....

William Mitchell — Modern Monetary Theory
Government debt fears – more fiction from the mainstream media
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Saturday, May 25, 2024

MAGA: The Biden Admin Has Had Zero Coordination Between Fiscal and Monetary Policy


Current MAGA thesis… “inflation!”…  “deficit too high!”… “the dollar is going down!”…  same shit as always…. if Trump gets back in he’s going to have a lot of trouble with these Art Degree morons on his right flank…





Thursday, May 23, 2024

Nvidia now worth over $2.5 Trillion, more than the market cap of the entire German stock market


Perma bears are going to be FREAKING… OUT…



 

Wednesday, May 22, 2024

UK MMT Conference 2024

15-17 July, 2024 / University of Leeds, UK

UK MMT Conference 2024

The conceptual roots of the Global South’s debt crisis — Ndongo Samba Sylla

MMT taking hold in the Global South?

The Jordan Times
The conceptual roots of the Global South’s debt crisis
Ndongo Samba Sylla, head of research and policy for the Africa region at International Development Economics Associates, is a former technical adviser for the presidency of the Republic of Senegal and a co-author of “Africa’s Last Colonial Currency: The CFA Franc Story” (Pluto Press, 2021) and a co-editor of Economic and Monetary Sovereignty in 21st Century Africa (Pluto Press, 2021)

Tuesday, May 14, 2024

Treasury Settlement

 

Much easier to understand by the monetarist morons figuratively as “they’re printin’ money!”…





Monday, May 13, 2024

De-Dollarization Bombshell: The Coming of BRICS+ Decentralized Monetary Ecosystem — Pepe Escobar UPDATED

 Footsoldier posted this in the comments. I am promoting it to a post. 

So-called de-dollarization is envisioned to happen in two major steps stages each with many incremental iterations. 

The first stage stage is conducting bilateral trade in the currencies of the trading partners. This is already well advanced. 

However, this is not actual de-dollarization, which is the establishment of a competing monetary system with a goal of eventually replacing the USD as the primary global currency. 

No one thinks that this will happen quickly and without growing pains, or without Western opposition. But it is a stated goal rather than simply an aspiration. 

The Unit plan is now on the table.

Sputnik Globe
De-Dollarization Bombshell: The Coming of BRICS+ Decentralized Monetary Ecosystem
Pepe Escobar

See also

Pepe waxes philosophical here. 

For some reason there is increasing interest in Stoicism right now.  

The most prominent Stoics were Marcus Aurelius, emperor of Rome, and Epictetus who was born into slavery. That pretty well covers the spectrum.

Those wishing to up their mental game may profit from reflecting on the Stoics.

Strategic Culture Foundation (sanctioned by the US Treasury Department)
Pepe Escobar

UPDATE

A new order may be in the works already. (The Economist)

Moon of Alabama
b
 

Thursday, May 9, 2024

If Government Can Print Money, Why Does It Borrow? — L. Randall Wray (2005)

Recently, the neglected question of why the US government borrows, given that it can print money, has arisen in the context of discussions surrounding a new documentary, Finding the Money. As L. Randall Wray observes in this one-pager, Modern Money Theory has been providing answers to this question for some time; and, he argues, it is a topic that mainstream economists are ill-equipped to address, since very few concern themselves with the monetary operations that underlie the question of why a currency-issuing government issues debt.
Underground Network ONE-PAGER No. 72 | May 2024
If Government Can Print Money, Why Does It Borrow?
L. Randall Wray, Levy Economics Institute, 2005

Also at Underground Network May 9, 2024
New documentary that explains how money works and how pretty much everyone today gets it all backwards.

Saturday, May 4, 2024

Corporate buybacks


No not so fast there buddy. ..  According to MMT the US government is “borrowing money!” from the tax exempt foreign divisions of these multinationals…

It’s not just transferring retained earnings into foreign UST accounts at the Fed as part of a scheme to reduce overall corporate tax liabilities… that’s not what is happening..






Month end settlements

 

Have to see if this large month end settlement pattern continues…. It may be that first of the month fiscal transfers are getting so large these days that they are destabilizing reserve assets at Depositories… so Treasury might be scheduling most of the settlements the day before to reduce reserve balances within the same regulatory period as the first of the month…

Treasury issuance is not “borrowing!” despite what MMT asserts…







Friday, May 3, 2024

Jared Bernstein, total idiot. You have to see this to believe it.

Monday, April 29, 2024

Trump to set interest rates himself under secret presidential plan


Trump getting ready to go to war with the Democrat Monetarist morons who currently run the Fed... He probably wants rates back at zero like Obama had for 8 years… 





Sunday, April 28, 2024

Japan

 

Shots fired:





Tuesday, April 16, 2024

Accounting 101

 

So what now we have Art Degree MMT Economics people teaching rudimentary Finance and Accounting Science 101 like this is some big revelation or something?  Big deal … 🤔




Thursday, April 11, 2024

JPMorgan says high interest rates are driving inflation higher

 

But these JPM people are not winning the Art Degree argument though:




This guy is winning the argument:




Wednesday, April 10, 2024

Latest European Union rules provide no serious reform or increased capacity to meet the actual challenges ahead — Bill Mitchell

It’s Wednesday and we have discussion on a few topics today. The first relates to the new agreement between the European Parliament and the European Council that was announced on February 10, 2024, which purports to reform the fiscal rules structure that has crippled the Member States of the EMU since inception. The reality is that the changes are minimal and actually will make matters worse. I keep reading progressives who claim the EU fiscal rules are no longer operative. Well, sorry, they are and the temporary respite during the pandemic is now over and the new agreement makes that very clear. I also express disappointment that high profile progressives continue to misrepresent Modern Monetary Theory (MMT) as they advance their own agenda, which effectively provides support to the sound finance narratives. Then some updated health data which continues to support my perspective on Covid. And then some anti-fascist music. What’s not to like.
William Mitchell — Modern Monetary Theory
Latest European Union rules provide no serious reform or increased capacity to meet the actual challenges ahead
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Wednesday, April 3, 2024

What is responsible government spending? — Guest post by Scott Baum

Today, I am fully engaged in work commitments and so we have a guest blogger in the guise of Professor Scott Baum from Griffith University, who has been one of my regular research colleagues over a long period of time. He indicated that he would like to contribute occasionally and that provides some diversity of voice although the focus remains on advancing our understanding of Modern Monetary Theory (MMT) and its applications. Today he is going to talk about what responsible government spending should look like. Anyway, over to Scott …
William Mitchell — Modern Monetary Theory
What is responsible government spending?
Guest post by Scott Baum, Professor at Griffith University, Queensland

Death of empires: History tells us what will follow the collapse of US hegemony — Henry Johnston

The turn away from expansion, production and trade toward lending and speculation has precipitated decline for centuries
In the vein of Michael Hudson on the transition from industrial capitalism to financial capitalism, and the implications of this transition systemically. The article is a summary of the work of Giovanni Arrighi, one of a number of economists, economic sociologist and economic anthropologists that have explored the phenomenon of capitalism and its development in terms of the world system.

RT — Question More (Russian state-sponsored media)
Death of empires: History tells us what will follow the collapse of US hegemony
Henry Johnston, an RT editor who worked for over a decade in finance and is a FINRA Series 7 and Series 24 license holder

Millions of simulations show that media companies have too much time on their hands — Bill Mitchell

It’s Wednesday and I discuss a number of topics today. First, the ‘million simulations’ that Bloomberg apparently think show that there is an impending US bond market rout. Second, the way in which neoliberal-inspired legislation ensures the private energy providers can gouge prices and make huge profits in the face of a state-owned alternative. Third, my latest podcast with Real Progressives. Fourth, the crocodile tears from the Australian government concerning Gaza when they are effective supplying the means to kill our own citizens and tens of thousands of others. Finally, to calm down after all that some great jazz.…
Bloomberg published a ridiculous article yesterday (April 2) – A Million Simulations, One Verdict for US Economy: Debt Danger Ahead – which I thought might have been a delayed April Fool’s joke.…

William Mitchell — Modern Monetary Theory
Millions of simulations show that media companies have too much time on their hands
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

In Defence Of Discrete Time Models — Brian Romanchuk

Not MMT per se but it has to do with economic modeling that is pertinent to MMT's stock-flow modeling. 

When looking at Steve Keens's claim about continuous and discrete yesterday, it seemed to me to be a bit off given that economic data is discrete despite the fact that it is reported in terms of flows that are assumed continuous. Brian explains the details of the modeling math clearly and briefly without getting overly wonkish. 

Bond Economics
In Defence Of Discrete Time Models
Brian Romanchuk