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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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.
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 ?
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.)
Austerity and deficit terrorism is designated against Obama and the american people.
ReplyDeleteLet'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 ?
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.
ReplyDeleteThanks for the kind words and linking to the article Mike and Tom.
ReplyDeleteDidn'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?
ReplyDeleteBEN : you need to correct the following -
(Greece and Italy are currency users; they cannot issue their own currency.)
Greece and Italy are NOT ...
@ Googleheim
ReplyDelete"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.
Hi Tom
ReplyDeleteI 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