Following up on my comments on the paper: “Deficits Do Matter: A Review of Modern Monetary Theory” by Farah Omran and Mark Zelmer, I am going to do a high level discussion about their claims about the value of an independent central bank. (For new readers, I am discussing this paper as I will be on a panel about Modern Monetary Theory (MMT), and Mark Zelmer is one of the participants. I am using my articles here as a way of thinking about my prepared remarks.)Bond Economics
The headline of this article is somewhat dramatic, but that is the only snappy way I can think of summarising my interpretation of the article. If one believes those authors, creating an independent central bank is a major innovation in economic policy that generates positive outcomes by itself. The MMT prescription of downgrading monetary policy (and a general hostility towards the concept of central bank independence) would in this case be a damaging policy shift.
Central Bank Independence As A Secret Ingredient?
Brian Romanchuk
Central banks are independent in both the West and China, but with a crucial difference.
ReplyDeleteIn the West, central banks rule a web of debt consisting of big private banks and various associated parasites. Everyone and everything ultimately works to make this web of debt-parasites richer and more powerful at the expense of the nation. The Treasury is subordinate to the central bank.
In China it is the reverse. The central bank is subordinate to the treasury. The Bank of China works for China, rather than China working for the central bank. It is a public bank like the Bank of North Dakota, using credit constructively, rather than for extraction and enslavement.
In the West, central banks, plus big private banks and speculative financiers cause all money to flow upward to them. They have sucked all the life out of their host nations, until the host has no more to give. Since they cannot stop, they are causing the West to collapse.
The West’s vampire financial system, and the collapse it has caused, has given rise to despair, anguish, and hopelessness among the peasants. Peasant despair manifests as wokery, BLM militancy, liberal supremacy, mass homelessness and drug addiction, rampant election fraud, and other pathologies.
In 1975 the USA changed from being a net exporter to a net importer. After 1975 the USA used the dollar’s reserve currency status to become a parasite on the planet, sending dollars to foreigners in exchange for their goods and services.
While the West was a parasite on the planet, financial powers became parasites on the West (Central banks, Wall Street, the City of London, etc.). All of Western civilization became geared to prop up the financial vampires. Now it is all coming to an end, taking the West with it.
Everyone knows this. The main difference between people is how much b.s. they tell themselves in a futile attempt to deny reality.
What would the value be of an independent cb staffed by Art degree morons who think munnie is real and we can run out of it?
ReplyDeleteUS Fed is completely under political control …
ReplyDeleteFed was trying to act independently in 2018 by increasing rates for alleged “normalization “ and Trump made them reverse…
Fed was trying to act independently in 2022 and was treating “inflation!”as transitory due to pandemic policies and Brandon made them reverse and increase rates in unprecedented fashion to “fight inflation!”
And if we can get Trump back in there in 2025 he will direct the Fed to significantly reduce rates his first day in office..,
The whole thing is political..,