Politicians on both sides of the Atlantic are once again talking about rolling back banking regulations to kick-start growth. This article is a timely reminder of why those regulations exist.MMT101.ORG - Learn Modern Monetary Theory (MMT)
Where was this play in the Art degree Keynesian free market fundamentalism playbook? I thought the Canada people were just supposed to add the tariff onto the price of the products? Instead they are removing the products from inventories… going to create a glut of these products in the US and US prices are going to fall to get rid of it … no “inflation!”… 🤔
Canada’s biggest province said it will remove American products from its government-run liquor stores as part of its response to President Donald Trump’s 25% tariffs on Canadian imports https://t.co/a2sCx4ajuE
— Bloomberg Economics (@economics) February 2, 2025
LOL … then according to Art degree monetarists they should reduce the rate to figure of speech “counter the headwinds!”.. which is what Trump wants them to do in the first place…
We read the transcripts of the Fed's 2019 meetings so you don't have to, and here's the main takeaway: The headwinds they felt from Trump's tariffs were strong https://t.co/57LOVFGjbn
— Bloomberg Economics (@economics) February 2, 2025
Looks like DOGE/Elon trying to reduce top line by $1T by September… US GDP $27T/yr…. So no multiple that’s a direct 3.7% …
I guess they think they’re only reducing govt spending on unnecessary regulatory activities or something… climate nutter stuff etc… maybe the “Argentina model”… 🤔
Reducing the federal deficit from $2T to $1T in FY2026 requires cutting an average of ~$4B/day in projected 2026 spending from now to Sept 30.
— Elon Musk (@elonmusk) January 31, 2025
That would still result in a ~$1T deficit, but economic growth should be able to match that number, which would mean no inflation in…
He seems to understand the Art degree figure of speech “money!” as rather a scientific abstraction:
The real economy is not money, it is goods & services.
— Elon Musk (@elonmusk) January 31, 2025
Money is simply an abstract representation of real things. https://t.co/mmOHBdTmkr
Today, we solve the ‘Case of the Missing Report’. Recall from – The Case of the Missing Report – Part 1 – that the Asian Development Bank published a report I had written (with Randy Wray and Jesus Felipe) – A Reinterpretation of Pakistan’s ‘economic crisis’ and options for policymakers (draft version) – in June 2009 as part of work I was undertaking for the Bank at the time on economic development in Central Asia. The report was published on June 1, 2009 as an official ADB Economics Working Paper No. 163 after our presentations were enthusiastically received at the Bank during seminars we gave. The Report was indexed by the major bibliographic and indexing services and evidence of that report still exists today. For example, the Asian Regional Integration Center provides a link to some 30 records covering – Pakistan – including our ADB paper with the official publication date. The ‘official’ link to the publication – https://www.adb.org/Documents/Working-Papers/2009/Economics-WP163.pdf – however, now returns a ‘Page not Found’ error. Then, if you search for ADB Economics Working Paper No. 163 on the ADB WWW Site you will find another paper – The Optimal Structure of Technology Adoption and Creation: Basic Research vs. Development in the Presence of Distance to Frontier – which somehow became Working Paper No 163 and was also published in June 2009. So what gives? How did our ADB Economics Working Paper No. 163 disappear from the face of the Earth to be replaced by another ADB Working Paper No. 163, all in the space of a day or so? In this Part 2 of the ‘Case of the Missing Report’, I provide the solution to the mystery....
Art degree morons as usual can’t understand the Accounting abstractions… think NVDA has to be shipping the REAL units to where the Accounting ABSTRACTIONS are recorded…
Like I guess they think we’re importing $300B net of Guinness, Jameson and potatoes from Ireland…
It’s the same as the current Trump “tariffs!” womanish soap opera… A LOT of people are going to get that wrong for the same reasons…
Looks like $NVDA GPUs have never been physically in Singapore ⚠️
— JustDario 🏊♂️ (@DarioCpx) June 29, 2024
So, according to $NVDA 10-Q disclosures “For example, most of the shipments associated with Singapore revenue went to either the United States or Taiwan in the first quarter of fiscal year 2025.”
Guess what..… https://t.co/n0Wr9IEz8M pic.twitter.com/plgg6ZdA7K
William Mitchell — Modern Monetary TheoryThis blog post is a long time in gestation and I could have written in 2009 which is the relevant year of the events that I will document in this two-part series. My conversations with government officials during my working trip to the Philippines last week highlighted several things, including their sheer terror of IMF intervention and the ratings agency. I will write separately about that in a later post. But the IMF watches these types of nations like a hawk and is ready to pounce to enforce their authority at the slightest departure from the neoliberal macroeconomic policy line. As long as these types of nations concede to the IMF bullying they have very little hope of developing towards being advanced states. And IMF bullying is what this blog post is about. This is Part 1 of a two-part story that might be summarised as the ‘Case of the Missing Report’. I will solve the mystery in Part 2, which will be published on Thursday of this week.
Expectations.
The Lens
This statement/tweet isn’t exclusively true:
MAGA will do whatever, but tariffs are taxes we pay on imports. It's time media outlets called them that. https://t.co/OZnlnS5YvU
— Dean Baker (@DeanBaker13) January 26, 2025
the foreign entities can simply lower their import prices in USD terms and access these foreign USD account balances as source of USDs to pay any new tariffs:
In analysis, it’s helpful to simplify and focus on the core elements of a system. Today, we will identify the essential processes and structures required to create a functional bank, accompanied by diagrams to illustrate these key processes.
Can’t even make it up… moron intellectual degenerate Art degree climate nutters (who couldn’t tell you the atomic number of hydrogen) running interference for the insurance scammers…
California's insurance system is broken for a variety of reasons, but climate change is not one of them.
— Ryan Maue (@RyanMaue) January 25, 2025
There is no greater consumer scam underway than insurance industry trade groups blaming climate change for skyrocketing rates. The media is complicit, on the take. https://t.co/VN9RU7F7Oz
I have been working in Manila this week as part of a ‘knowledge sharing forum’ at the House of Representatives which was termed ‘Pathways to Progress Transforming the Philippine Economy’ that was run by the Congressional Policy and Budget Research Department, attached to the Congress (Government). I am also giving a presentation at De La Salle University on rogue monetary policy. It has been a very interesting week and I came in contact with several senior government officials and learned a lot about the way they think and do their daily jobs. I Hope the interactions (knowledge sharing) shifted their thinking a little and reorient to some extent the way they construct fiscal policy. This blog post reports (as far as I can given confidentiality) what went on at the Congress.
I am back in New York after an extended trip to California. Before I left town, I joined Scarlet Fu on Bloomberg Markets. We talked about the GOP plan to pass “one big beautiful bill” as quickly as possible and how much of it they’re going to try to offset/“pay for” (versus adding to the deficit)....
The Latest Epicycle in Interest Rate MythologyEvery so often, a new fad emerges to prop up the fantasy that interest rate targeting is some economic panacea. The latest contender? Reserve requirements.The premise is simple: if we stop paying interest on massive excess reserve quantities held by banks, we won’t have to hand over vast sums to them. The stunning amount of intellectual effort required to come to this conclusion is why economists earn the big money. Predictably, it has been seized upon by those Right-Thinking Lefties who detest bank profits but remain wedded to the mystical notion of an all-controlling interest rate.Misunderstanding Banking—AgainSince economists construct their banking theories on layers of myths, they inevitably arrive at the wrong conclusions. Yanis Varoufakis fell into precisely this trap when applying the reserve requirement argument to the UK.So, let’s take a step back and examine reserve requirements in the context of UK banking—without the distortions of mainstream economic dogma....
Trump plan to reduce “inflation!”…. 1. Get energy production costs down (ie euthanize the “climate!” nutters) … 2. Reduce the policy interest rate (ie order the Fed to reduce FFR/IOR)…
Nooooooooooobody right now thinking he can do any of this …
This is a good sign the Fed may be generally acquiescing to Trump admin policies….
🇺🇸Fed Announces Withdrawal from Global Climate Coalition. pic.twitter.com/xjSgOFPRwi
— Update NEWS (@UpdateNews724) January 17, 2025
Today (January 17, 2025), MMTed releases Episode 10 in the Second Season of our Manga series – The Smith Family and their Adventures with Money. Have a bit of fun with it while learning Modern Monetary Theory (MMT) and circulate it to those who you think will benefit.
This is funny the Art Degree morons all think fire hydrants contain a fixed amount of water (rather than control pressure) i.e. “the hydrants ran out of water!” … meanwhile they think govt treasury can “pump in money!” … both AT THE SAME TIME… 😂😂😂😂😂
Gov. Newsom on LA not having water in its fire hydrants: Not my job pic.twitter.com/2SzW3Az1D8
— End Wokeness (@EndWokeness) January 9, 2025
To calm shattered nerves in the west, the message is out: BRICS is not floating a new currency; BRICS is providing alternative economic structures and systems (and currencies) to trade with one another....
Michael Hudson noted three challenging points — foreign debt exposure, economic rent extraction, and the need to raise living standards and labor productivity….
Indonesia, the fourth most populous nation, is now also a member of BRICS.
