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.
What gets done without labor? Not a whole lot. So why is their share of the world's output dropping dramatically? Gov't sanctioned theivery, leading to outright enslavement.
The way I look at it (electrical paradigm) nothing that 'flows' is appropriately described as "neutral" (or 'positive' or 'negative' either)
In electrical paradigm, 'potential' can be 'positive, negative or neutral', electrical current 'flow' of charged particles is created across these potentials...
I look at dynamic 'flows' of USD balances as similar to 'charged particles' in this analogy, instead of 'potential', so you would not appropriately describe this flow as 'neutral'... you would use a term/unit that describes a 'flow' in 'per unit time', a 'zero flow' is also not best described as 'neutral' rather it is a 'zero flow'...
iow we would never say: "amperes are neutral"...
The wiki on amperes: "the ampere is a measure of the amount of electric charge passing a point in an electric circuit per unit time with 6.241 × 1018 electrons, or one coulomb per second constituting one ampere."
We have 'authority' in an economy operating under state currency... which is similar to electrical 'potential' in an electrical analogy.
This 'authority' can probably be described as 'neutral or positive or negative' .... but not the currency.
So he is mixed up.... maybe where he is going wrong is he is applying the word "neutral" to the metonym "money" in trying to communicate or describe his observation that his "money" is not the operative 'force' in the system so he is saying it is 'neutral' using the word in a general sense meaning "of no import" in itself (ie without the presence of 'potential' or 'authority').... that would be my hunch...
So leave the term 'neutral' out of it when it comes to analyzing state currency systems... rather use it in describing the current status of our civil government...
right now I'd describe govt as 'positive' (but obviously not high enough)
3 comments:
Scott Sumner finally bothers to try and explain how the "hot potato effect" is supposed to work:
'The Hot Potato Effect Explained'
http://www.themoneyillusion.com/?p=23314
What gets done without labor? Not a whole lot. So why is their share of the world's output dropping dramatically? Gov't sanctioned theivery, leading to outright enslavement.
The best thing about that blog is the name y....
He has "money is neutral"...
The way I look at it (electrical paradigm) nothing that 'flows' is appropriately described as "neutral" (or 'positive' or 'negative' either)
In electrical paradigm, 'potential' can be 'positive, negative or neutral', electrical current 'flow' of charged particles is created across these potentials...
I look at dynamic 'flows' of USD balances as similar to 'charged particles' in this analogy, instead of 'potential', so you would not appropriately describe this flow as 'neutral'... you would use a term/unit that describes a 'flow' in 'per unit time', a 'zero flow' is also not best described as 'neutral' rather it is a 'zero flow'...
iow we would never say: "amperes are neutral"...
The wiki on amperes: "the ampere is a measure of the amount of electric charge passing a point in an electric circuit per unit time with 6.241 × 1018 electrons, or one coulomb per second constituting one ampere."
We have 'authority' in an economy operating under state currency... which is similar to electrical 'potential' in an electrical analogy.
This 'authority' can probably be described as 'neutral or positive or negative' .... but not the currency.
So he is mixed up.... maybe where he is going wrong is he is applying the word "neutral" to the metonym "money" in trying to communicate or describe his observation that his "money" is not the operative 'force' in the system so he is saying it is 'neutral' using the word in a general sense meaning "of no import" in itself (ie without the presence of 'potential' or 'authority').... that would be my hunch...
So leave the term 'neutral' out of it when it comes to analyzing state currency systems... rather use it in describing the current status of our civil government...
right now I'd describe govt as 'positive' (but obviously not high enough)
rsp,
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