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, December 20, 2012
Zero Hedge — Guess Who Is NOT "Rotating" Out Of Treasurys
You know what would make people invest in stocks? Some confidence that the companies they might invest in are going to grow. But once again, our leaders' idea is to try to goose the supply side while negotiating in Washington over the best way to suppress the demand side even further by cutting the deficit.
It strikes me that what people want at this point in time is a way to rationalize their sense of anger, resentment and hatred.
People on the far right - goldbuggerers, etc, provide them with this.
Every super-popular online video features some guy moaning about the evilness of government or wall street, or preferably both at once.
Then MMTers turn up and say "hey, the government should just deficit spend more!"
That message just makes people even angrier, because it doesn't seem to attack those currently in power.
Instead, it seems to say "just give them more powerand everything will be ok!"
I think every MMT media appearance should be carefully calibrated to include a certain amount of hate - such as: "those f@cking congressmen/bankers, etc", and a certain amount of hope - "but this is what we can do to make things better in future!", etc.
The goldbuggerers have this routine down to a tee.
What I am concerned with is that when there is another crisis and there will be before very long since nothing material has changed and the rot is still there, there will be an overreaction when the public wakes up. This is what Marx and Schumpeter warn of, each in their own way. And I am not speaking only of the US here but globally. There's a lot of instability growing socially and politically as well as economically, and neoliberalism is pretty much at the bottom of most of it. There will be a reaction eventually.
Good summary in this video, got trust or oligarchy. A big problem though is when people trust the oligarch propaganda.
"Robert Johnson: Unmasking of Wall Street at Culture Project's IMPACT 2012 Festival" https://www.youtube.com/watch?v=JmTr3P5BiL0&list=PL2AF22380676B28C4
Primary dealers are stuck with inventory that a lot of their customers don't want. That's all that chart in ZH is showing.
Having said that, Primary dealers will probably be "right" by accident, simply because rates are not going up. The Fed told us as much. At least, they're not going up until the unemployment rate hits 6.5%. If we get an unemployment rate below 7%, then maybe it's okay to start worrying.
Perhaps building up inventory to deal to the Fed once they start purchasing the 40B/month.... what price the Fed will agree to pay for them seems like it is a different issue altogether...
My hunch: They will only pay lower prices... as the Fed people doing this are morons who think they are running a hedge fund "for the taxpayers"....
there will be an overreaction when the public wakes up. This is what Marx and Schumpeter warn of, each in their own way
Schumpeter - a right-winger - was fascinated by Marx's power of analysis. When reading the first chapters of his seminal "Capitalism, Socialism and Democracy" it's hard not to be awed by the depth of his knowledge of Marx's tought.
No wonder both shared an understanding of capitalism as a dynamic, revolutionary system bound to generate instability and cause recurring economic crises that devastate the way of living of people who just happen to find thenselves - through no fault of theirs - on the wrong side of the the process of "creative destruction".
In a sense, one can feel a certain nostalgia for those civilized times when conservative thinkers paid due tribute to the intellectual giants of the other side of the political spectrum.
Today, the typical right-wing mediocrity teaching at, say, the University of Chicago won´t know much about Marx or heterodox thinkers in general. And will likely - and sadly - revel in his lack of knowledge.
You know what would make people invest in stocks? Some confidence that the companies they might invest in are going to grow. But once again, our leaders' idea is to try to goose the supply side while negotiating in Washington over the best way to suppress the demand side even further by cutting the deficit.
ReplyDeleteIt strikes me that what people want at this point in time is a way to rationalize their sense of anger, resentment and hatred.
ReplyDeletePeople on the far right - goldbuggerers, etc, provide them with this.
Every super-popular online video features some guy moaning about the evilness of government or wall street, or preferably both at once.
Then MMTers turn up and say "hey, the government should just deficit spend more!"
That message just makes people even angrier, because it doesn't seem to attack those currently in power.
Instead, it seems to say "just give them more powerand everything will be ok!"
I think every MMT media appearance should be carefully calibrated to include a certain amount of hate - such as: "those f@cking congressmen/bankers, etc", and a certain amount of hope - "but this is what we can do to make things better in future!", etc.
The goldbuggerers have this routine down to a tee.
:)
This is why Michael Hudson, Bill Black, and Steve Keen are popular.
ReplyDeleteThat's what I was thinking.
ReplyDeleteThey bring the hate..
They bring the hate..
ReplyDeleteI would say "rage."
What I am concerned with is that when there is another crisis and there will be before very long since nothing material has changed and the rot is still there, there will be an overreaction when the public wakes up. This is what Marx and Schumpeter warn of, each in their own way. And I am not speaking only of the US here but globally. There's a lot of instability growing socially and politically as well as economically, and neoliberalism is pretty much at the bottom of most of it. There will be a reaction eventually.
Good summary in this video, got trust or oligarchy. A big problem though is when people trust the oligarch propaganda.
ReplyDelete"Robert Johnson: Unmasking of Wall Street at Culture Project's IMPACT 2012 Festival"
https://www.youtube.com/watch?v=JmTr3P5BiL0&list=PL2AF22380676B28C4
Primary dealers are stuck with inventory that a lot of their customers don't want. That's all that chart in ZH is showing.
ReplyDeleteHaving said that, Primary dealers will probably be "right" by accident, simply because rates are not going up. The Fed told us as much. At least, they're not going up until the unemployment rate hits 6.5%. If we get an unemployment rate below 7%, then maybe it's okay to start worrying.
Perhaps building up inventory to deal to the Fed once they start purchasing the 40B/month.... what price the Fed will agree to pay for them seems like it is a different issue altogether...
ReplyDeleteMy hunch: They will only pay lower prices... as the Fed people doing this are morons who think they are running a hedge fund "for the taxpayers"....
rsp,
there will be an overreaction when the public wakes up. This is what Marx and Schumpeter warn of, each in their own way
ReplyDeleteSchumpeter - a right-winger - was fascinated by Marx's power of analysis. When reading the first chapters of his seminal "Capitalism, Socialism and Democracy" it's hard not to be awed by the depth of his knowledge of Marx's tought.
No wonder both shared an understanding of capitalism as a dynamic, revolutionary system bound to generate instability and cause recurring economic crises that devastate the way of living of people who just happen to find thenselves - through no fault of theirs - on the wrong side of the the process of "creative destruction".
In a sense, one can feel a certain nostalgia for those civilized times when conservative thinkers paid due tribute to the intellectual giants of the other side of the political spectrum.
Today, the typical right-wing mediocrity teaching at, say, the University of Chicago won´t know much about Marx or heterodox thinkers in general. And will likely - and sadly - revel in his lack of knowledge.
And they likely haven't read Schumpeter either.
ReplyDelete