This article was triggered by some discussions I ran into on Twitter. My belief is that the economics literature on banking (with some exceptions) is a failure. From the perspective of advancing knowledge, the best course of action would be to ritually burn the literature, and start over from scratch.Bond Economics
(Note: due to the length of this discussion, I am breaking it into (at least) two parts. This first part gives an overview, then turns to the analysis of individual banks.)
The core of the problem is that the economics fraternity started from the wrong place, and the incorrect description of banking was enshrined in Economics 101 textbooks. The heterodox literature then responded to the incorrect theory, which then has the unfortunate effect of making the whole discussion even harder to understand...
Banking Debate Woes (Part I)
Brian Romanchuk
10 comments:
"The core of the problem is that the economics fraternity started from the wrong place, and the incorrect description of banking was enshrined in Economics 101 textbooks."
Nope, they started from the right place to ensure an economic paradigm based on neo colonialism, stealing of real resources from which to extract rent. To "trickle up" the profits.
Universities were funded heavily to both create that paradigm and to come to that conclusion.
It was the logical place to start. If you were going to start a propaganda campaign against government spending you had to lie how banking works. Lie about interest rate targeting.
See why the EU was set up the way it was for details.
See Zach Carter's price of peace for details.
They all know how banking works. I was a premium investment consultant for Santander They know how it works. I tested managers on it in the tea room. They passed with flying colours.
They've known for hundreds of years
https://new-wayland.com/blog/post-war-banking-policy/
Calling them stupid and trying to point it out in a class room ain't going to work. They just sit back and laugh at anybody who points out The obvious.
They simply don't care that they use propaganda to achieve their political and geo political goals it is their raison d'être.
There's absolutely no difference to the propaganda used in this war to the propaganda used in economics. It is exactly the same shit created by exactly the same people.
When you hear anyone say bankers are stupid and don't know how how banking works. They are coming at it from the wrong perspective.
When you hear anyone say the treasury are stupid and don't know how how government spending works. They are coming at it from the wrong perspective.
They miss the clear and obvious perspective that the state and banking have been hijacked to serve a very small group of people. The leisure class and capital. They used propaganda to do it.
The question remains. The hundreds of years question. How do you get rid of them ?
How did the people of New York get rid of those rulers of New York of the guilded age in the 1800's ?
They didn't they are still there and have been there from the very beginning. The Robber Barons are alive and well. " old money" and " new money" are like left and right a figment of the imagination. When studied serve the same purpose. Control and power for the Leisure class and capital.
If you were a MMT'r in 1959 and were told here is a $10 million if you can change the monetary system to serve big business and the banks. How would have done it and where would you start ?
What would be the very first things you would have changed and what instructions would you have given to Saatchi & Saatchi for your advertising campaign ?
If you were a MMT'r in 1980 and were told here is a $50 million if you can change the European Union to serve big business and the banks. How would have done it and where would you start ?
What would be the very first things you would have changed and what instructions would you have given to Saatchi & Saatchi for your advertising campaign and call them treaties.
What would MMT'rs have done it they accepted those tasks and sold their souls for money in 1959 and 1980 ?
Exactly what the chumps did that did collect the money for those tasks. That changed the monetary system to serve big business and the banks. Would probably have started at the same place. Replace government spending with bank loans.
When somebody starts a sentence with ...
" I don't / want or hate to sound cynical "
Normally means they are going to tell the truth.
Mike has done it on Twitter many times and every time he quoted the "truth" after starting the sentence that way.
These psychopaths have a million reasons not to listen to MMT'rs. Billion reasons to completely ignore MMT.
MMT having zero real power and zero political clout is why.
Using what these war mongers learned during their many years of wars.
That is during war time you can get away with anything. Change the Economy to a war economy and trample over many rights.
All they had to do was manufacture an economic crises. Which is the economic equivalent of moving to a war economy. Under the guise of that manufactured crises change anything they wanted to change and introduce structural reforms without any pushback at all.
So did the economic crises in the 70's happen naturally or was it manufactured.
Especially when so many similar economic crises were rolled out as US foreign policy over the next 50 years.
LOL they would make EVEN MORE munnie than they do now…
Foot didn’t know you were all into the “neoliberal conspiracy!” theory too…
Being an MMTer and never talking about the job guarantee misses the point...
Matt You are The only person on the planet that doesn't believe it.
The real Conspiracy is they don't know how it works because they have art degrees.
They know how it works and have done for hundreds of years. Then use propaganda to lie about it.
Unless of course you believe those with art degrees set up the EU the way it is by mistake or stumbled across the French CFA franc in Africa.
Believe Rome couldn't figure out how coinage worked to control and occupy foreign territories. As they were too busy studying art.
Or the British Empire with their coffee plantations. The East India company were clueless never had a clue what they were doing because the art of the colonies hypnotized them.
Why would the job guarentee even come into it. The MMT'rs in 1959 and 1980 were given a task to set up the monetary system to serve big business and the banks. The leisure class and capital not to serve labour.
It is why the propaganda around interest rates were created in the first place. Funded by the leisure class and sold to the public via the media they control.
Milton friedman was on TV more than Seasame street and the muppets. Was even given his own TV show. Free to choose on PBS.
The equivalent of a false flag in Bucha.
It’s not a conspiracy theory to challenge someone’s technical qualifications…
All of your examples are from time periods when tptb had us under a gold standard… “convertible currencies”…
We are not under those conditions now…
Bad analogies…
Art degree people use analogies which are figures of speech …
Qualified technical people don’t use figures of speech ….
“ Definition of Analogy
An analogy is a figure of speech that creates a comparison by showing how two seemingly different entities are alike,”
iow how about try being more discriminating in your analysis…
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