This is the fourth part of the series on sovereign deficits and debt. (Last week I erred in identifying the post as the third part in the series on math sustainability—it was the third part of the whole series but only the second piece on math sustainability; in a sense, this is the third part of the math series.) The series was started in response to my Economonitor Ed Dolan’s original post detailing agreements and possible disagreements with the MMT approach.Economonitor | Great Leap Forward
MMT And The Sustainability Of Sovereign Deficits And Debt
L. Randall Wray | Professor of Economics, UMKC
Sovereign deficits are certainly desirable since that is where new government money comes from but borrowing by the monetary sovereign is not only absurd but it creates a rentier class who actually profit from deflation in the government's money since it increases the real return on sovereign debt without increasing the risk of default since there can be no risk of default by a monetary sovereign.
ReplyDeletegermany rents it's precision machine production
ReplyDeletegreece rents it's kleptocratic insolence
argentina rents it's soybeans
china rents it's cheap labor
brazil rents it's chopping of rain forrests
canada is going to rent it's sludge
italy rents it's vegetables
it is all about the rents for sure
and the usa rents it's U$D as a reserve currency
ReplyDeleteas per wiki definition of rentier system