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.
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Saturday, November 21, 2020
Pandemic triggers systemic economic crisis, unprecedented since Great Depression - Putin
Moscow ready to provide vaccines to countries in need, said the Russian president.
Usually the ‘economists’ who use ‘macroeconomic models’ ‘believe’ that the solution to the current macroeconomic problem is the implementation of the ‘correct’ type of demand side policies. That is, how to increase income/output {‘growth’}. Increase M0, M2 or M3, cut r, or make it negative. Increase G and finance it by ‘borrowing’ from the central bank or by borrowing from the private sector. Or ensure that private credit is extended only for GDP transactions. All that is lacking is a ‘sufficient’ increase in aggregate demand! The neoclassical/Austrian economists, who believe that income/output is ‘supply determined’, will argue that all that is required to generate a large increase the growth of the underlying productive potential of an economy is for taxes to be cut and more ‘competition’, etc be introduced! ‘They’ may pay ‘lip service’ to the production of CO2 etc, but, usually, having too much of their lives tied up in their ‘babies’ will ignore the externalities that economic growth will bring? ‘They’ are usually old wo/men and unable or unwilling to change?
And, of course, they fail to consider the ‘supply side’ of an economy?
If ‘this’ is true then, ‘we’, have about 10 years?
“our best estimate is that the net energy 33:33 per barrel available for the global 33:36 economy was about eight percent 33:38 and that in over the next few years it 33:42 will go down to zero percent 33:44 uh best estimate at the moment is that 33:46 actually the 33:47 per average barrel of sweet crude 33:51 uh we had the zero percent around 2022 33:56 but there are ways and means of 33:58 extending that so to be on the safe side 34:00 here on our diagram 34:02 we say that zero percent is definitely 34:05 around 2030 . . . we 34:43 need net energy from oil and [if] it goes 34:46 down to zero 34:48 uh well we have collapsed not just 34:50 collapse of the oil industry 34:52 we have collapsed globally of the global 34:54 industrial civilization this is what we 34:56 are looking at at the moment . . . “
If we have 10 years, there will be a lot of oil remaining in the ground. The 'thermodynamic cliff' won't be as scary as portrayed in that graph.
If civilization were sustainable, we'd eventually run out of oil. But that isn't the case.
There are limits to growth, which translate to limits to fossil fuel production/consumption. Peak oil, or peak conventional oil are examples of the limits to growth. Economic growth is linked to resource production/consumption.
Civilization is unsustainable because it degrades the biosphere. Animals that degrade their habitat face decline and/or extinction.
Tom Hickey, what is your view on George Soros for Vice President pump $1 billion of his wealth into Kamala Harris 2024 (or 2028) completely replace corporate donors I am going to contact the president when Joe Biden becomes president suggest it.
I have long said that the major problem in the US is corruption. Campaign finance, lobbying and the revolving door are foundation to it. Corruption has been legalized and it's just the way politics works in the US. It's rotted the system. There is no indication that this is going to change anytime soon.
I have long said that the major problem in the US is corruption. Tom Hickey
Our money system is inherently corrupt because of privileges for the banks, the rich and asset owners.
There is no indication that this is going to change anytime soon. ibid
So does the MMT gang propose to eliminate those privileges?
No! Except for eliminating positive yields on inherently risk-free sovereign debt, the MMT gang would INCREASE* privileges for the banks and, by extension, for the rich and asset owners, the most so-called "credit worthy."
*e.g. unlimited guarantees for private, including privately created deposits. e.g. unlimited, unsecured Central Bank loans to private banks at 0% interest.
Oh yeah people giving munnie to politicians to make favorable policy towards them in self interest is magically making everybody think “we’re out of money!” at the same time... yeah right...
Usually the ‘economists’ who use ‘macroeconomic models’ ‘believe’ that the solution to the current macroeconomic problem is the implementation of the ‘correct’ type of demand side policies. That is, how to increase income/output {‘growth’}.
ReplyDeleteIncrease M0, M2 or M3, cut r, or make it negative. Increase G and finance it by ‘borrowing’ from the central bank or by borrowing from the private sector. Or ensure that private credit is extended only for GDP transactions.
All that is lacking is a ‘sufficient’ increase in aggregate demand!
The neoclassical/Austrian economists, who believe that income/output is ‘supply determined’, will argue that all that is required to generate a large increase the growth of the underlying productive potential of an economy is for taxes to be cut and more ‘competition’, etc be introduced!
‘They’ may pay ‘lip service’ to the production of CO2 etc, but, usually, having too much of their lives tied up in their ‘babies’ will ignore the externalities that economic growth will bring?
‘They’ are usually old wo/men and unable or unwilling to change?
And, of course, they fail to consider the ‘supply side’ of an economy?
If ‘this’ is true then, ‘we’, have about 10 years?
“our best estimate is that the net energy
33:33 per barrel available for the global
33:36 economy was about eight percent
33:38 and that in over the next few years it
33:42 will go down to zero percent
33:44 uh best estimate at the moment is that
33:46 actually the
33:47 per average barrel of sweet crude
33:51 uh we had the zero percent around 2022
33:56 but there are ways and means of
33:58 extending that so to be on the safe side
34:00 here on our diagram
34:02 we say that zero percent is definitely
34:05 around 2030 . . .
we
34:43 need net energy from oil and [if] it goes
34:46 down to zero
34:48 uh well we have collapsed not just
34:50 collapse of the oil industry
34:52 we have collapsed globally of the global
34:54 industrial civilization this is what we
34:56 are looking at at the moment . . . “
https://www.youtube.com/watch?v=BxinAu8ORxM&feature=emb_logo
If we have 10 years, there will be a lot of oil remaining in the ground.
ReplyDeleteThe 'thermodynamic cliff' won't be as scary as portrayed in that graph.
If civilization were sustainable, we'd eventually run out of oil. But that isn't the case.
There are limits to growth, which translate to limits to fossil fuel production/consumption.
Peak oil, or peak conventional oil are examples of the limits to growth.
Economic growth is linked to resource production/consumption.
Civilization is unsustainable because it degrades the biosphere.
Animals that degrade their habitat face decline and/or extinction.
Somewhat related:
ReplyDeleteAnima Mundi documentary | permaculture, energy, economics, climate and deep ecology
https://youtu.be/girxJvv19HA
Tom Hickey, what is your view on George Soros for Vice President pump $1 billion of his wealth into Kamala Harris 2024 (or 2028) completely replace corporate donors I am going to contact the president when Joe Biden becomes president suggest it.
ReplyDeleteI have long said that the major problem in the US is corruption. Campaign finance, lobbying and the revolving door are foundation to it. Corruption has been legalized and it's just the way politics works in the US. It's rotted the system. There is no indication that this is going to change anytime soon.
ReplyDeleteI have long said that the major problem in the US is corruption. Tom Hickey
ReplyDeleteOur money system is inherently corrupt because of privileges for the banks, the rich and asset owners.
There is no indication that this is going to change anytime soon. ibid
So does the MMT gang propose to eliminate those privileges?
No! Except for eliminating positive yields on inherently risk-free sovereign debt, the MMT gang would INCREASE* privileges for the banks and, by extension, for the rich and asset owners, the most so-called "credit worthy."
*e.g. unlimited guarantees for private, including privately created deposits.
e.g. unlimited, unsecured Central Bank loans to private banks at 0% interest.
Soros for VP would send QAnon and right wingnuts into a tizzy.
ReplyDeleteOh yeah people giving munnie to politicians to make favorable policy towards them in self interest is magically making everybody think “we’re out of money!” at the same time... yeah right...
ReplyDeleteHappy coincidence is magic!
ReplyDelete