It’s wishful thinking to think it’s being driven by wishful thinking…
The EU's idea of the reform of the fiscal framework is unworkable in practice. It will lead to recession and crises and higher public deficits and debts. Instead of building the reform on hard science (incl. accounting & empirical observation), it is driven by wishful thinking.
— Dirk Ehnts (@DEhnts) January 30, 2024
It’s being driven by a type of academic practice that doesn’t exist in the “hard sciences “…
12 comments:
I asked this guy to direct me to the data he posted that shows private sector balance in deficit. This seems odd to me because the Euro Area's official balance is in deficit. Where are the euro surpluses? All in the foreign sector? I don't get it.
The two of you are in agreement. He's pointed out that the EU proposal of small fiscal surpluses over time is a nonsense idea and impossible to do.
Right but what good is an academic methodology that allows that to happen?
Same people are saying a dude with dick and balls is a woman….etc…
The other thing is he and Godley are both technically wrong as if the ECB were to ever stop its asset purchases and start to reduce system reserves it could lead to a sustained growth in credit to the private sector leading to govt surplus for a long time …
Could be 10 years depending on the magnitude and time domain aspects of that CB policy…
"The other thing is he and Godley are both technically wrong as if the ECB were to ever stop its asset purchases and start to reduce system reserves it could lead to a sustained growth in credit to the private sector"
Spoken like an ideologue in the 90's until 2008 happened.
You should go over Minsky's work again.
The MMT idea is so much better All levies, liquidity ratios, reserve requirements and the like are eliminated. The cost of maintaining the collateral system is eliminated. The result is loans at a low price with the quantity restricted solely by credit quality. As an economy heats up, credit quality declines and loans become restricted — systemically preventing the Ponzi stages of finance that lead to a Minsky Moment.
I like this idea
https://www.crisesnotes.com/new-report-monetary-policy-without-interest-rate-hikes/
Page 19 - 22 of the report sounds like common sense to me.
Proscribed banks, forced to rely on credit analysis for profit, help prevent a boom by issuing less credit as project quality declines.
You get a natural and steady withdrawal of funding that is far more surgically targeted and responsive to local conditions, than the carpet bombing approach of interest rate adjustment.
MAGA is all about interest rate targeting nonsense and Steve Bannon has been doing a tour of UK radio and TV networks over the last week. Doesn't even know what the deficit represents. They are a bunch of maniacs. Laffer curve trickle down fruitloops. The guy has serious mental health problems going by the interviews I saw. A freak show.
Offer absoloutely nothing new apart from fresh lipstick on a pig. The libertarianism MAGA is offering is nothing but the same as Mussolini and other fascists offered when they rose to power. As they move voters from one con trick to another. Blame absolutely everything on the left who haven't held any power for 50 years. Now Davos are Even Marxists ffs.
They crave the power of the state they claim to hate. Once they get that power they'll show you what they think freedom means. They'll burn more books than the liberals this time aeound and whitey will be back with a vegence. Those poor long suffering white people who claim they are victims because of every other race on the planet. With the godless yellow people aimed in their sights. After they have sorted out the Mexicans on their border. As old whitey now sees them as native indians.
Fucking lunatics. The whole country has a genocidal tendency. They just can't help themselves. Just like the Nazis who weren't at all pure blood and were a very mixed race. Trace any MAGA supporters patriot blood line back and it will will take 5 seconds before you come across a foreigner.
Whatever they do they'll claim it as gods work. The invisible being in the sky will be with them side by side.
They are insane !
They all start off like this to win votes.
https://www.oswaldmosley.com/the-philosophy-of-fascism/
But it never takes them long for them to morph into what they really mean by freedom. Their version of libertarianism when they get the state power they crave.
After the right economic system fucked everything up in the 30's they very quickly blamed the left.
Now after the 90's right wing ideology fucked everything up they are just pulling out the very same speeches of the 30's and the exact same tactics.
History is just repeating itself and Here we are nearly at WW3.
MAGA (Make Argentina Great Again) may provide a preview of what not to do.
Lessons will not be learned.
MAGA is all about interest rate targeting nonsense and Steve Bannon has been doing a tour of UK radio and TV networks over the last week. Doesn't even know what the deficit represents. They are a bunch of maniacs. Laffer curve trickle down fruitloops. The guy has serious mental health problems going by the interviews I saw. A freak show.
Offer absoloutely nothing new apart from fresh lipstick on a pig. The libertarianism MAGA is offering is nothing but the same as Mussolini and other fascists offered when they rose to power. As they move voters from one con trick to another. Blame absolutely everything on the left who haven't held any power for 50 years. Now Davos are Even Marxists ffs.
It's nice having someone read my mind.
As Big Brother said: Ignorance is STRENGTH
They crave the power of the state they claim to hate. Once they get that power they'll show you what they think freedom means.
The only value in libertarianism is its support for free speech.
“Spoken like an ideologue in the 90's until 2008 happened.“
Yo, My hypothesis is that 2008 happened for the same reason… a sudden increase in bank reserves by the Fed which stopped the credit supply function..
China doing it right now too…
“ You should go over Minsky's work again.”
What “stability creates instability!” 😂😂😂😂😂
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