It will be interesting to see what Boris Johnson does, he seems to be more pragmatic and less dogmatic than other Conservatives.
I've read he wants to keep his new voters, so he has shifted slightly to the left.
The forced resignation of the United Kingdom’s Chancellor of the Exchequer, Sajid Javid, is the latest sign that macroeconomic policy is being upended, and not only in the UK. In addition to completing the ritual burial of the austerity policies pursued by UK governments since 2010, Javid’s departure on February 13 has broader significance.
Prime Minister Boris Johnson is determined to overcome Treasury resistance to his vast spending ambitions. The last time a UK prime minister tried to open the government spending taps to such an extent was in 1964, when Labour’s Harold Wilson established the Department of Economic Affairs to counter Treasury hostility to public investment. Following the 1966 sterling crisis, however, the hawk-eyed Treasury re-established control, and the DEA was soon abolished. The Treasury, the oldest and most cynical department of government, knows how to bide its time.
Robert Skidelsky - The Monetarist fantasy is over
10 comments:
Have you read Bill Mitchell's latest blog entry?
It is Labour than remains stuck in fantasy land.
Skidelsky says "monetary policy failed to anticipate, and therefore prevent, the Great Recession of 2008-09...". Er - what sparked off the recession that started in 2008/9 weas the bank crisis. I don't see what monetarism had to do with it.
Yeah Bob right here's Kevin:
"so he has shifted slightly to the left."
Like the Right has a monopoly on govt "debt!" doomsday lol!!!
I hope the Labor party is paying him well and the DNC is compensating Tom appropriately...
Complete political hacks...
"what sparked off the recession that started in 2008/9 weas the bank crisis. I don't see what monetarism had to do with it."
Ralph Monetarism teaches that "banks lend out the Reserves" ... so they thought that if they increased Bank Reserves, then banks would have more to "lend out!" and it would help stimulate bank lending in 2008...
So that is where the "bank crisis" was created... Monetarists at the CB and Treasury modified policy to rapidly increase Reserves at the depositories and suppressed the Leverage Ratio (A-L)/A below minimum threshold and the credit markets shut down and caused cascading bankruptcies and defaults...
Mnuchin just admitted as much the other day Mnuchin said “It shouldn’t impact the market one way or another whether we put money at the Fed or at a bank.”
He's saying "it shouldn't" NOT "it doesn't"... Mnuchin has figured this out
"putting money at the bank" is in Monetarist terms "increasing the money supply" which they think is somehow helpful when if you are competent and qualified in the regulatory accounting you can see that it depresses the regulatory leverage ratio and PREVENTS banks from lending or increasing lending...
the whole GFC was a Monetarist created disaster that was completely avoidable if they had competent people in there directing policy instead of unqualified Monetarists..
In this way Monetarism CAUSED the bank crisis/GFC...
See Mike's video here key line: "the Universe does not reward stupidity"...
https://youtu.be/eXmKRReWr9o
These are numismatic systems that we create and administer... and if we put unqualified people in charge of them then We create our own problems...
And btw here we go with Skidelsky here now that it is a Monetarist "fantasy!"
OK now you Art degree guys have:
1. Myth
2 secret neo-liberal conspiracy
3 evolved from the apes by random chance
4 superstition
5 fantasy (new!)
so now youre up to 5 (congratulations!) lunatic art degree figurative ineffectual explanations have I left any out???
So now Matt has ascribed 5 points due to his art degree envy. Have I left something out?
Oh yes, his right wing nut job bias together with the extreme art degree envy. The finger- and landscape painting classes didnt work out for Matt.
Hey don’t give up. Some day you’ll will succeed. Keep up the good work.
Does it take an art degree to use the term codswallop?
Its figurative language too Bob...
Is that a 6th thing you are proposing? I can add it to the list if so....
Add Matt Franko tothe list.
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