Monday, June 6, 2022

Bringing back GST is the right move — Dr. Irwan Shah Zainal Abidin

Economic doctrines, like the Modern Monetary Theory, which are quite popular, especially in times of crisis and recovery, can illuminate these issues further.

In the midst of World War 2, British economist John Maynard Keynes once said: "Anything we can actually do we can afford."

And, in his important book, How To Pay For The War, Keynes noted: "Coming up with the money is the easy part. The real challenge lies in managing your available resources — labour, equipment, technology, natural resources, and so on — so that inflation does not accelerate."

In other words, the real question here is to agree on what we want to do and to figure out how best to do it. Keynes was right to argue that the real limit to public spending is inflation....
The New Strait Times (Malaysia)
Bringing back GST is the right move
Dr. Irwan Shah Zainal Abidin | associate professor at the School of Economics, Finance and Banking, Universiti Utara, Malaysia


Footsoldier said...

It is not that controversial to call Trump a protectionist - Is it ?

I dunno if it is.

If his advisors was willing to turn big agriculture into a treasury department to try and offset his tariff policy.

Who's to say he wasn't willing with Tillerson and Cohn to set up big oil as a treasury department to push through their Energy Dominance’ strategy?

Use these models which are very similar to push through some of his foreign and trade policies ?

Who knows, but if true, it looks and smells like how to plan a "certain type" of economic war economy to me.

He found the money alright and broke every US government spending record in history and his advisors Used some of it, to try and offset some of his geopolitical policies.

Probably never achieved very much on the geopolitical map as they were aimed at China and Europe. Like the current sanctions strategy backfired in many ways.

I dunno if he ever got a win over China the time he was there. He was certainly running out of ideas.

NeilW said...

Nice article - other than the GST bit.

Sales taxes exacerbate the problem with savings.

Footsoldier said...

These guys are expecting the 10 year yield to start rolling over very shortly.

Optionality-Derived Models Suggest The Equity Rally May Extend Through June 3 To June7/8. The 10Yr Yield Shows Signs Of Rolling Over.

We are looking for the Yield to complete a final uptick to circa 3.000 area before the Yield rolls over .

That provides great platform for expecting further equity recovery based on our premise that risk assets will celebrate declines in the 10Yr yield.

If the Yield does roll over and falls over the next week or so, Gold (GC) also should benefit, and may finally have the wherewithal to rise further back to 1900.

The 10Yr yield is now close to rolling over and continue to fall until mid-June.

Footsoldier said...

Shall we play a game ?

No not nuclear destruction with DEFCOM.

It's called the rollover game.

Instructions for the game are here

What happens when the 10 year yield rolls over until middle of June.

Short the $

Short oil


Short gold

Long SP500

Trades can be placed by using the new Scottish digital currency kiltcoin. To get your hands on kiltcoin please send me a cheque in the post.

Let the game begin...


Footsoldier said...

I love the crude oil/ Yen chart.

Since Trump.


Footsoldier said...

Going by the rolling over instructions I think the game says long gold.