I have been doing a lot of talks over the last few years discussing Modern Monetary Theory (MMT) with financial professionals. I stress that I am not acting as a consultant, to allow this community to make more money. I often joke I hope they all go broke. My motivation is education and one hopes that these communities will spread our ideas through their own influential networks. The aim is to put pressure on the public policy makers to restore full employment and reorient the public imagination away from the gloom that the neoliberal years has imposed on our policy aspirations. One of the things I confront these audiences with is the reality that an adherence to the precepts of mainstream macroeconomics and the predictions that flow from them have undermined their own objectives (which, shh, is to make money). I can easily point to many ways in which the mainstream of my profession have vicariously made predictions that could never be accurate, yet have been relied on by investors as if they were derived from valid knowledge. I have no sympathy for those who have made massive losses in this way, but when the consequences spread into the real economy and start costing jobs and work-related incomes, then the concerns rise. In the last few weeks, we have seen a classic example of this phenomenon and the message is – won’t they ever learn!...
Bill Mitchell – billy blog
Investors lose out following the advice of New Keynesian (mainstream) macroeconomicsBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
My service, MMT Trader, is applied MMT. It takes the concepts and understandings of MMT and applies them to investing and Trading. Bill Mitchell and the other MMT academics can talk about MMT all they want, even go so far as to say "investors who follow New Keynesian (mainstream) are losing out," but I SHOW people how to make money using MMT.
ReplyDeleteOnly the most recent newcomers to The short bonds trade are losing money…
ReplyDeleteIf you shorted bonds at the beginning of the year on the second December passed stimmy “money printing!!” then you’re still profitable in the trade…
So either the current bond rally has a lot more to go or those early bond bears are going to make money…
You can see from bills graph that bond yields topped when the Fed reimposed leverage ratios at the end of March… Tier1 assets got that bid back… now we’re probably headed into debt ceiling at the end of this month and Treasury supply is going to be severely reduced… and net treasury supply is going to be zeroed…
ReplyDeleteHow does using MMT to make money grapple with this exactly?
ReplyDeletehttps://www.theguardian.com/society/2021/jul/12/tories-have-unhealthy-financial-reliance-on-property-developers-says-report