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.
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Friday, August 14, 2009
My latest video: Will the stock rally continue?
Here's my latest video, just out! Attempts to answer that burning question on everyone's mind, "Will the stock market rally continue?"
I think Japan's export economy came about as a result of a desire to net save in dollars. This goes back to after WWII, when they were the vanquished nation and we helped to rebuild them.
I think the dollar will go up, but we'll grow slower than other countries around the world. It's already happening--Europe is growing; we're still in a recession!
that's right. big net saver japan is, and yet they have some big probs as recently outlined.
CEO of Whole Foods is a Deficit terrorist -
In the article, published Tuesday, Mackey called for less regulation of the insurance industry. He also said programs such as Social Security and Medicare are leading to unsustainable government deficits.
"The last thing our country needs is a massive new health-care entitlement that will create hundreds of billions of dollars of new unfunded deficits and move us much closer to a government takeover of our health-care system," Mackey wrote.
he doesn't understand how the monetary system works
nobody can save or invest if the gov does not spend
Yes, there's no such thing as an "unfunded" deficit under a system of floating FX, non-convertible currency. It's an oxymoron. The gov't spends by crediting bank accounts and that spending equates to added demand (and income, savings, etc) to the private sector. The health industry is already a big part of our economy and the only private sector industry that has continued to create jobs through this entire downturn. Investing in it makes sense as it will lead to new technologies, medicines and other life-saving and life-improving innovations. And if you accept that humans are the most important capital of a nation (the human capital), then investing in the maintenence of that capital is far more important than investing in the roads, bridges and other infrastructure that supports commerce. We do the latter, so why is he so against the former?
I think many folks wouldnt necessarily be against these Govt programs such as providing healthcare, SSI, etc. I think the reason they are often reflexively against such things is they think "taxpayers are on the hook" and that their taxes will stay high or even go higher "to pay for it". Taxes are WAY too high already, as Mike has blogged about here extensively. The Govt sector is removing too much income from the non-Govt sector (via taxes and zero interest rates) and the result is this sort of social unrest (Outrage/Tea Parties/Unruly Congressional Town Hall Meetings/Crime) that Mike predicted would result on his show years ago.
I sometimes cant blame these uninformed masses from reacting the way they do to "more Govt" as they equate that to even higher taxes.
If we keep working to promote/educate the public to the realities of Soft Currency Economics, perhaps policymakers would feel safe to cut taxes and increase spending on vital public programs and MAINTAIN this deficit at an appropriate level for the US to enjoy our highest living standards...win/win for the politicians AND the USA.
PS: I have heard a nickname for Mackey's Co. is "Whole Paycheck" as their food is relatively expensive., Resp.
Yes Matt, you're absolutely correct. If the ruling elite's perception is that the government's means are limited then taxes will rise based on that (flawed) view of reality. Obama has already said several times that, "We are out of money." So, yes, I can't blame folks either for feeling that it is their money paying for new programs. As soon as you raise taxes, or deny tax cuts on the basis that "we can't afford them," then basically you've put taxpayers on the hook.
I can only hope then that he is baiting out the lunatics who show up at the townhall meeting with their lack of understanding of their own medicare consumption, as well as others who think we don't have any money.
If he understands, then he is bluffing them like a good pitcher and then going to strike them out in broad daylight.
However, his game is basketball so it remains to be proven and seen.
what about japan ?
ReplyDeletejapan imports a lot, and exports a lot at least historically
was japanese hunger to export driven by the hunger to balance the budgets via terrorist deficit worries and look how they are now ?
they are slowed down with very strong currency etc
are we going to have a strong or weak dollar??
I think Japan's export economy came about as a result of a desire to net save in dollars. This goes back to after WWII, when they were the vanquished nation and we helped to rebuild them.
ReplyDeleteI think the dollar will go up, but we'll grow slower than other countries around the world. It's already happening--Europe is growing; we're still in a recession!
that's right. big net saver japan is, and yet they have some big probs as recently outlined.
ReplyDeleteCEO of Whole Foods is a Deficit terrorist -
In the article, published Tuesday, Mackey called for less regulation of the insurance industry. He also said programs such as Social Security and Medicare are leading to unsustainable government deficits.
"The last thing our country needs is a massive new health-care entitlement that will create hundreds of billions of dollars of new unfunded deficits and move us much closer to a government takeover of our health-care system," Mackey wrote.
he doesn't understand how the monetary system works
nobody can save or invest if the gov does not spend
what a right wing herbal jerk!!!
Yes, there's no such thing as an "unfunded" deficit under a system of floating FX, non-convertible currency. It's an oxymoron. The gov't spends by crediting bank accounts and that spending equates to added demand (and income, savings, etc) to the private sector. The health industry is already a big part of our economy and the only private sector industry that has continued to create jobs through this entire downturn. Investing in it makes sense as it will lead to new technologies, medicines and other life-saving and life-improving innovations. And if you accept that humans are the most important capital of a nation (the human capital), then investing in the maintenence of that capital is far more important than investing in the roads, bridges and other infrastructure that supports commerce. We do the latter, so why is he so against the former?
ReplyDeleteGoog,
ReplyDeleteJust put our discussion on the front page. Thought it was worthy.
-Mike
I think many folks wouldnt necessarily be against these Govt programs such as providing healthcare, SSI, etc. I think the reason they are often reflexively against such things is they think "taxpayers are on the hook" and that their taxes will stay high or even go higher "to pay for it".
ReplyDeleteTaxes are WAY too high already, as Mike has blogged about here extensively. The Govt sector is removing too much income from the non-Govt sector (via taxes and zero interest rates) and the result is this sort of social unrest (Outrage/Tea Parties/Unruly Congressional Town Hall Meetings/Crime) that Mike predicted would result on his show years ago.
I sometimes cant blame these uninformed masses from reacting the way they do to "more Govt" as they equate that to even higher taxes.
If we keep working to promote/educate the public to the realities of Soft Currency Economics, perhaps policymakers would feel safe to cut taxes and increase spending on vital public programs and MAINTAIN this deficit at an appropriate level for the US to enjoy our highest living standards...win/win for the politicians AND the USA.
PS: I have heard a nickname for Mackey's Co. is "Whole Paycheck" as their food is relatively expensive., Resp.
Yes Matt, you're absolutely correct. If the ruling elite's perception is that the government's means are limited then taxes will rise based on that (flawed) view of reality. Obama has already said several times that, "We are out of money." So, yes, I can't blame folks either for feeling that it is their money paying for new programs. As soon as you raise taxes, or deny tax cuts on the basis that "we can't afford them," then basically you've put taxpayers on the hook.
ReplyDeleteI think Obama knows how the money system works.
ReplyDeleteI can only hope then that he is baiting out the lunatics who show up at the townhall meeting with their lack of understanding of their own medicare consumption, as well as others who think we don't have any money.
If he understands, then he is bluffing them like a good pitcher and then going to strike them out in broad daylight.
However, his game is basketball so it remains to be proven and seen.