Thursday, October 20, 2011

Nice MMT-related post

Warren Mosler calls attention to The Problem With The Deficit? It’s Not Big Enough by Ben Strubel as a "well stated MMT based narrative." If you didn't catch it already at Warren's here, definitely take a look at it. MMT is getting out there.


googleheim said...

Austerity and deficit terrorism is designated against Obama and the american people.

Let's call it ADT for short.

ADT seeks to drain liquidity from the Real economy in hopes of creating a surplus inside the non-real economy - the Fed & Tsy balance sheets.

We can make a matrix from this :

Fed&Tsy vs Real Economy
a. negative vs negative
b. positive vs negative
c. positive vs positive
d. negative vs positive

where negative = deficit
and positive = surplus

Are any and all of these operational possibilities ?

If you abolish the Fed and the Tsy you have a pure real economy based on land, gold, silver, etc.

If a person owes another entity ( i.e. in debt to another ) then there is a negative and a positive simultaneously - this balances out overall and you have a victor or person who has the note.

but how can you have a positive vs positive condition ?

Tom Hickey said...

There is no win-win in their world. It's a zero sum game — winner and losers — and that's the way they want it when all is said and done.

Ben Strubel said...

Thanks for the kind words and linking to the article Mike and Tom.

googleheim said...

Didn't Thomas Jefferson say that every 5 or 10 years ? Is that to be interpreted as creative destruction or a way to cycle the economy to the benefit of every one?

BEN : you need to correct the following -
(Greece and Italy are currency users; they cannot issue their own currency.)

Greece and Italy are NOT ...

Tom Hickey said...

@ Googleheim

"BEN : you need to correct the following -
(Greece and Italy are currency users; they cannot issue their own currency.)"

Huh? Of course Greece and Italy are currency users rather than own-currency issuers and cannot issue either drachma or lira anymore.

googleheim said...

Hi Tom

I am sorry

spent all day taking care of sick animal

I thought I was reading "Greece and Italy are currency ISSUERS ..."

users not dealers

just like the casino - if you run out of chips, then just press more out