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Monday, August 19, 2019

Deficit is $930 bln. Why are all the prominent MMTers silent on this? They should be cheering, no?

The deficit as of August 15, was $931 bln. That's the highest in 7 years. And as a percentage of GDP it's now at 4.4%, the highest in 6 years.




So why are all the prominent MMTers silent about this?

Nothing from Kelton. Mosler continues to put out bearish forecasts. (Going on 5 years now!)

They only talk about deficits when it's convenient for them?

They say they're not political, but it seems to me that not mentioning the deficit is a way of not giving credit to Trump, even obliquely.

Their information and analysis is discredited in my opinion. If you want to play objective you have to be objective.
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16 comments:

  1. Matt FrankoAugust 19, 2019 at 8:09 AM

    "They say they're not political,"

    hahahahahahahahaha!!!!!

    ReplyDelete
  2. Matt FrankoAugust 19, 2019 at 8:12 AM

    Mike maybe its "deficit too big!" now for them?????

    Like before it was "deficit too small!" BUT NOW its "deficit too big!!!"

    ??????? Could be....

    Maybe they are all now signed up with the Buttigieg campaign????

    #gettingnowhere

    ReplyDelete
  3. mike normanAugust 19, 2019 at 8:39 AM

    Hahahahahaha.

    ReplyDelete
  4. Mike DoyleAugust 19, 2019 at 8:48 AM

    But don't MMTers emphasize that it's what the deficit funds that's important? Tax cuts for billionaires is not seen as useful.

    ReplyDelete
  5. mike normanAugust 19, 2019 at 9:01 AM

    Actually, the deficit is from higher spending on 4 things: Social Security, Medicare, Medicaid and Defense. It's not from tax cuts for billionaires. I don't think they'd have a problem with the first three. In fact, they should be cheering those increases, but they're not.

    ReplyDelete
  6. peacefulposterAugust 19, 2019 at 10:22 AM

    The European fiscal situation may be more important than the US, at least at the moment. If the increasing talk of fiscal stimulus in Europe comes true, this could be a game changer.

    ReplyDelete
  7. Matt FrankoAugust 19, 2019 at 11:04 AM

    "it's what the deficit funds!"

    Classic...

    ReplyDelete
  8. hoonoseAugust 19, 2019 at 11:34 AM

    I'm a nobody MMT'er and have in fact celebrated this very fact. Trump knows debt!

    Next term Trump the liberal will finally be able to reveal his lasting legacy with even more central spending. Massive infrastructure and/or healthcare related with his name on it for all eternity! Erasing any Obama names of course...

    ReplyDelete
  9. GregAugust 19, 2019 at 1:05 PM

    Mike,

    Your point about Medicare,Medicaid SS is correct I imagine. I haven’t dug down into the numbers so I’ll take your word on it. It makes sense. Let’s see how it all works out once the rethugs get their desired cuts in all those “entitlements”. There are plenty of positions taken by plenty of politicians to make one scratch their head. One could just as accurately ask why conservatives keep demonizing those entitlements when they are the largest driver of GDP/Dow supporting deficits?

    Why haven’t any of their minions on Fox business been praising the high deficits as driving this “Trump boom”. I believe when asked, Wray and Kelton and co have pointed out how increasing deficits have supported our economy all along since 2008 and have warned against going after entitlements, lest you make those folks use private debt to support consumption

    ReplyDelete
  10. Janus DanielsAugust 19, 2019 at 4:10 PM

    They've already written that, as I put it, massive deficits are the Republican Party's only good policy. It's not just about the deficit. It's about spending our money to buy Republicans reckless witless evil, instead of spending our money for #GreenNewDeal #JobGuarantee #UBI #EndPoverty #infrastructure #welfare #EducationForAll #MedicareForAll #EndWars #TroopsHome #BustBanks #NetNeutrality and so on.

    ReplyDelete
  11. GregAugust 19, 2019 at 9:18 PM

    And now Trump is considering a payroll tax cut to fend off the recession he says isn’t coming. Using payroll tax reduction to fight recession......... textbook MMT.

    ReplyDelete
  12. CarlitosAugust 19, 2019 at 9:53 PM

    Kelton said on CNBC months ago that the US economy is resilient. Mosler’s bearish views started in the Obama era. That is hardly partisan politics. He actually spoke positively of Mike Norman’s brief presidential campaign, and that was after he was attacked on this site.

    ReplyDelete
  13. RichardAugust 20, 2019 at 1:18 AM

    Our MMT A-team doesn't owe Donald Trump any recognition for anything. Why would they risk their good will by casting their pearls of wisdom before swine?

    ReplyDelete
  14. Ryan HarrisAugust 20, 2019 at 9:55 AM

    The right size deficit depends on private sector savings desires, I was told by senior MMT officials. Not exactly sure how to measure savings desires but I think the yield curve, stock market and things like this are real time proxies of the need for financial saving.

    ReplyDelete
  15. hoonoseAugust 20, 2019 at 3:02 PM

    For Heinlein fans, a few interesting posts by 'Anonymous said...'

    http://londonbanker.blogspot.com/2011/09/testimony-of-marriner-eccles-to.html

    ReplyDelete
  16. Matt FrankoAugust 21, 2019 at 8:29 AM

    "Our MMT A-team"

    Politicians are never "A Team!" of anything...

    ReplyDelete