Thursday, July 18, 2019

MMT's Kelton Sees Central Banks Quietly Yielding to Governments — Yuko Takeo and Masahiro Hidaka

  • Their independence will shrink to policy execution, she says
  • Says Japan policy flawed by hitting gas and brakes together
Looks like the last mile has closed.


1 comment:

AXEC / E.K-H said...

Prophet Stephanie divines the seizure of the means of production of currency
Comment on Yuko Takeo/Masahiro Hidaka on ‘MMT’s Kelton Sees Central Banks Quietly Yielding to Governments’

Since biblical times, prophecies are a tool of psychological manipulation and social programming. Needless to emphasize that prophets claim a higher insight and make assertions that can neither be verified nor falsified. So, prophecy is the very opposite of science.

MMT claims to be a scientific theory. Fact is that it is refuted on all counts. MMTers claim to do science. Fact is that they are in the business of political agenda-pushing. Stephanie Kelton claims to be a scientist. Fact is that she is one of the many useful idiots of the Oligarchy who populate academia.

The MMT agenda is simple and straightforward: pushing deficit-spending/money-creation by all means which includes seizing the “means of production of currency”, i.e. the central bank.#1 All else is populist do-gooder-save-the-world propaganda.

Stephanie Kelton, the public face of Modern Monetary Theory, puts the MMT mission statement into the form of a prophesy: “While they [the monetary authorities] won’t openly say that they’ve lost their independence, she predicted, ‘you’re going to see central banks responding in more accommodative, coordinating ways.’

Stephanie Kelton resolves all doubt: “Critics say that MMT is a recipe for spiraling government debt and would revive now-dormant inflation with a vengeance. There’s also growing concern about central-bank independence, driven by President Donald Trump’s Twitter tirades against the Federal Reserve, and similar pressures in Turkey and India.” and “MMT argues that government spending is the most direct way to spur growth ― and sees no reason why central banks shouldn’t support it.”

The reason lies in macroeconomics. The policy of deficit-spending/money-creation benefits the Oligarchy because it increases macroeconomic profit according to the Profit Law which entails Public Deficit = Private Profit. MMT is a free lunch program for the Oligarchy. Financial wealth and public debt grow in lockstep and the fabulous financial wealth in the USA is roughly equal to humongous public debt ($22 trillion). The Profit Law explains how billionaires are able to accumulate that much money and why they can buy all the bonds the Treasury issues and cash in the ultra-safe interest that is reliably taxed from WeThePeople as long as the debt is rolled over. This can function for a very long time but eventually, the economy breaks down. This is NOT a prophecy but a mathematical certainty.

The very characteristic of Late Capitalism is that the so-called free market economy is on the full life support of the State. Profit is produced by the government through deficit-spending/money-creation and Wall Street is kept going by the central bank. The Oligarchy, in turn, uses the opulent free lunches to corrupt what remains of the State’s legislative, executive, and judiciary institutions. The circular interdependence is self-reinforcing and politically ruinous.

In order to pull this fraud through, a snake-oil sales team is needed. Stephanie Kelton is neither a scientist nor a prophet but an agenda-pusher for the Oligarchy.

Egmont Kakarot-Handtke

#1 MMT’s true program