Monday, January 28, 2019

MMT "critics"


Two more nutty ones. Not worth time rebutting, since they attack a straw man.

While some criticism is improving as critics realize that the game is changing and they need to up their game if they want to be credible in attacking MMT, some haven't yet gotten that message and making fools of themselves. Sorry to seem harsh, but the time has passed for nonsense.

Forbes
The Flamboyant Absurdity of 'Modern Monetary Theory'
John Tamny | speech and op-ed writer, Director of the Center for Economic Freedom at FreedomWorks, editor of RealClearMarkets, and a senior economic adviser to Toreador Research & Trading

LibertyNation
MMT or Bust – A Big Government Fantasy for Leftists
Andrew Moran | Economics Correspondent at LibertyNation.com

Sunday, January 27, 2019

Florida Maquis - PRESIDENT NICOLAS MADURO OF VENEZUELA PROVED *HE* IS THE TRUE LEADER OF THAT NATION(!)

There is no dictatorship in Venezuela and Nicolas Manduro has the support of he police and the army. No one has ever voted for Juan Guaido but the U.S. says he is the democratically elected president. Just bold faced lies!

Does the Earth orbit the moon, and can you get fifty angels on a pin head, yes if Washington says so?



True leaders don't swear *THEMSELVES in with the assistance of Foreign Criminals like Pompeo, Bolton, Rubio, Pence, ....


US APPOINTS CONVICTED CRIMINAL TO LEAD DIPLOMATIC CORPS IN VENEZUELA(!)



Saturday, January 26, 2019

Bulletin of the Atomic Scientists — The Doomsday Clock — 2019 Doomsday Clock Announcement

Humanity now faces two simultaneous existential threats, either of which would be cause for extreme concern and immediate attention. These major threats—nuclear weapons and climate change—were exacerbated this past year by the increased use of information warfare to undermine democracy around the world, amplifying risk from these and other threats and putting the future of civilization in extraordinary danger. 
There is nothing normal about the complex and frightening reality just described....
Bulletin of the Atomic Scientists — The Doomsday Clock
2019 Doomsday Clock Announcement

Jennifer Morgan and Sharan Burrow — Tackling The Twin Challenges Of Climate Change And Inequality


Bingo.
These crises are interlinked. The richest 10 percent are responsible for nearly half of carbon emissions caused by consumption, and yet all around the world, it's the poor and marginalised that are most at risk from the devastating effects of climate change.
Growing inequality and rising climate disruption are both the result of the "profit first" neoliberal economic model Davos elites have adopted in recent decades. The good news is that also means addressing climate change and inequality can go hand in hand. We can change the rules of the global economy to benefit people and the planet alike.…
Good luck with that. Nothing will happen until the next crisis to provoke the needed reset of the world order. If not then, will the last person left please turn off the lights as you leave.

Why not? The solution is to preempt economic rent and tax away the residual. That means the end of "capitalism" as the elite know it and have come to love it, and now believe it is the natural order of things.

You have heard of "class struggle," right?

Al Jazeera
Tackling The Twin Challenges Of Climate Change And Inequality
Jennifer Morgan and Sharan Burrow

Andrew Korybko - Why Would The US Want Venezuela’s Oil When It Already Buys 41% Of Its Total Exports?

Could there be another reason why the U.S. wants control of Venezuela's oil?

The world is a den of vipers all back stabbing each other -  friends one moment, foes the next.

The prevailing Alt-Media narrative that Washington wants to impose a pro-US puppet regime on Venezuela in order to control all of the country’s oil doesn’t make much sense when considering that it already buys 41% of the Bolivarian Republic’s total exports, meaning that another more nuanced explanation needs to be offered in order to account for this narrative double-think.
Nevertheless, the truth of the matter is that control over Venezuela’s oil is indeed one of the motivations behind this conflict, though not in the way that it’s being portrayed. Alongside ensuring full geopolitical control over the Caribbean Basin and ideologically confronting socialism, the US wants to obtain predominant influence over Venezuela in order to incorporate it into a parallel OPEC-like structure for challenging the joint Russian-Saudi OPEC+ arrangement per the author’s late-2016 prediction about the formation of a “North American-South American Petroleum Exporting Countries” (NASAPEC) cartel. This entity would function as “Fortress America’s” energy component and have the potential to exert powerful long-term pressure on the international oil market at Russia and Saudi Arabia’s expense. When coupled with the US and Qatar’s joint LNG investment plans, it’s clear to see that the US is making a global power play for control over the world’s energy industry, which could very adversely affect Russia.
 Eurasia Future

LInks — 25 Jan 2019

RT

Sputnik International
Journo [Gordon Dimmack] on Integrity Initiative: We Run Risk of Living in Dystopian Future

Zero Hedge
Watch Live: Yellow Vests Rage For 11th Straight Week; Organizers Plan Night Rallies, Human Chain Of 50,000
Tyler Durden

Tal Axelrod

The Economic Times [India]
India refuses to join efforts to recognise self-declared president of Venezuela [This is big. Russia, China, India and Iran, i.e., Global East and South, oppose. Can the US defeat these four when it cannot beat the Taliban? Let's be serious.]
Dipanjan Roy Chaudhury

Crooks and Liars
John Bolton Says Ultimate Goal In Venezuela Is To Take Their Oil [At least he is honest about it. This has zero to do with democracy, as longstanding US policy amply demonstrates.]

Foreign Ministry of the Russian Federation
Foreign Ministry statement on the developments in Venezuela [short and to the point, sharply]

TASS
US orchestrates demands to call elections in Venezuela within 8 days - foreign ministry [Ultimatum]

The Unz Review
America’s Shameful War [Afghanistan. Again, not about what the US claimed. Now, the US is "trapped" by sunk cost.]
Eric Margolis

Geopolitika
Alain de Benoist: Jair Bolsonaro's [ultra-neoliberal] program is appalling!

TomDispatch
“The Bleeding Wound”— Afghanistan and the Implosion of America  [Sunk cost. The US has already lost, it just can't admit it publicly — yet.]
Tom Engelhardt

Reuters
Foreign troops to quit Afghanistan in 18 months under draft deal: Taliban sources
Abdul Qadir Sediqi, Jibran Ahmad, Rupam Jain


Matias Vernengo — Still time to save the euro


Free book.

My humble opinion.


Naked Keynesianism
Still time to save the euro
Matias Vernengo | Associate Professor of Economics, Bucknell University

Steve LeVine — Special Report: A new — unknown — world

The global elite has come to realize that the 70-year old power structure has collapsed.
Axios
Special Report: A new — unknown — world
Steve LeVine

See also
The main flaw with capitalism, critics here and elsewhere argue, is that nowhere is it practiced as it is meant to be: capitalism is supposed to be hellishly competitive; and, in addition to featuring an invisible hand, it's supposed to have a heart.Instead, say increasing numbers of critics, market power is concentrated across industries. In the U.S., four airlines control more than 65% of the market; in cellphone service, the top four have 80%; and in drug stores it's about 70%, according to "The Myth of Capitalism," a new book by Jonathan Tepper. This is not to mention the market power exerted by Big Tech.
As to empathy, the problem goes back to Adam Smith, the father of capitalism. Mainstream economists tend to ignore Smith's appeal to the better nature of the human race — for "following our conscience [and] ... promoting the happiness of mankind," according to the Adam Smith Institute.
The neglect of this dimension is a culprit in the grievances of the world's down-on-their-luck rust belts, coal towns, and factory centers.

"The way [capitalism] has been practiced has been corrosive to some of the conditions that made it an attractive system," Christopher Eisgruber, president of Princeton University, tells Axios. "The practice has undermined some of the cultural supports that made it successful."

The bottom line: "Large segments of society are excluded from the fruits of economic growth," said Adam Tooze, an economic historian at Columbia University. "And the corporate world is deeply worried about legitimacy."
Lose legitimacy and you are done, as President Macron is learning in the streets.

The elites running the capitalist system are at risk of losing control

Brad DeLong, conspiracy theorist? Who knew?

My read is that (1) Putin has something on Trump that Trump regards as either highly embarrassing or fatal (although what it could be is at this stage hard to imagine: what could embarrass Trump? what could lead McDonnell and company to stop defending Trump?); (2) Putin has said that he will keep quiet as long as Trump is "agreeable"; (3) Putin has left it up to Trump to define what "agreeable" is; (4) Trump is neither sophisticated nor wise as he attempts to do Putin's bidding….
What news does he head anyway not to know that the US and Russia are preparing for a nuclear showdown as the doomsday clock advances? Has he missed that the neocons are back in charge of foreign policy?

Grasping Reality
My read is...
Brad DeLong | Professor of Economics, UCAL Berkeley

Or is he channeling Pelosi?

Buzzfeed
Nancy Pelosi Asked On Twitter What Putin Might Have On Trump
Amber Jamieson

Oh, wait. Brad rescues himself — although it has taken Paul Krugman and him inordinately long to figure this out. But the rest of the conventional economists haven't yet. More porof of the value of reading the history of economics, especially the greats like Smith, Marx, Veblen, Keynes, and Polanyi — and understanding MMT? Most of the MMT novices got this out of the box as we watched it happening. See Bill Mitchell, Myths about China, Tuesday, October 18, 2011.

As Karl Marx wrote in the middle of the nineteenth century: Imbalances in pre-capitalist economies do not produce aggre...

Gordon Dimmack - Journo on Integrity Initiative: We Run Risk of Living in Dystopian Future

The biggest story of our time is being ignored by the corporate media.


Anonymous hacktivist group published a new batch of documents with more details on the UK Integrity Initiative covert operation to influence allies and target Russia, namely with some new information about Integrity Initiative's Institute for Statecraft head, Christopher Donnelly. Sputnik spoke about it with investigative journalist Gordon Dimmack.


Sputnik: The documents released by the Anonymous hacktivist group say that Institute for Statecraft head Christopher Donnelly was engaged in the selection of a group of military intelligence specialists. It was reported that the main goal of the organised group was to influence Western politicians and push them into conflicts with Russia and China. Judging by such actions, the Integrity Initiative is expanding its activities abroad. Could such actions be considered a form of hybrid warfare?
Gordon Dimmack: Hybrid warfare is exactly what it is. Even a cursory reading of the Wikipedia page on Hybrid Warfare shows this description of events to be accurate:
"Hybrid warfare is a military strategy that employs political warfare and blends conventional warfare, irregular warfare and cyber warfare with other influencing methods, such as fake news, diplomacy, lawfare and foreign electoral intervention."
You can see evidence of the above strategy being employed right now by the Integrity Initiative. The political warfare is glaringly obvious with their rhetoric against anything even slightly "Russian" in particular, and with the constant smearing of journalists who work for Russian media outlets. Cyberwarfare is evident in their whole operation, especially with their constant warnings of "fake news", which seems to be entirely designed to constrict traffic to independent journalists on the internet and social media who are telling inconvenient truths about the West's foreign policy failings, whilst boosting views for MSM outlets on platforms like YouTube.
Diplomacy can be seen as being weaponized with the multiple rounds of sanctions against Russia in the last 2 years, which in most cases were in response to accusations devoid of any actual evidence at all. Lawfare is being used in attempting to silence RT and your own media agency, with the Integrity Initiative known to be the originators of complaints of "bias" against Russian media outlets. And as for foreign electoral intervention, look no further than their actions in Spain, where the Spanish II "cluster" was responsible for stopping socialist politician Pedro Baños from becoming Spain's Director of National Security.
In conclusion, if it walks like a duck and talks like a duck, it's probably a duck. And the Integrity Initiative sure does look and sound like a Duck of Hybrid Warfare in action.
Sputnik: This is the fifth set of documents released on the Integrity Initiative. The UK Foreign Office has already recognised some of the documents as credible. Why are the Integrity Initiative's activities being neglected by the mainstream media? Why isn't a deeper investigation being conducted?
Gordon Dimmack: When you consider how many mainstream journalists and media outlets have been shown to be aiding and abetting the Integrity Initiative, the implications of their silence on this story speak volumes. This is one of the biggest stories on the planet right now, if not the biggest. It is right up there with the Pentagon Papers, and in many people's view who have in-depth knowledge of the story, it's bigger than Watergate. So, the media's silence on this scandal can only point to their complicity in it. It's also worth noting, there's also a handful of Labour politicians talking loudly about this (Chris Williamson the loudest), both in the House and with reporters, but they can never seem to get an interview about it on UK MSM or them to cover his questioning — which does indicate the MSM are up to their necks in a Mockingbird-like operation on a larger scale than we currently understand.
Our 4th estate, it seems, is dead. An operating, functional and independent media is vital to Democracy. Without it, we run the risk of living in a dystopian future, where truth is lies and war is peace. I fear that if we don't put a stop to operations like II, that dystopian future is not far off.
 Sputnik News

Izabella Kaminska — BIS trolls bitcoin


Izzy summarizes how BIS explains Bitcoin is a Ponzi scheme.

FT Alphaville
BIS trolls bitcoin
Izabella Kaminska

Gordon M. Hahn — The West’s Alienation of Russia: The Next Wave

The alienation of post-Cold War Russia has proceeded in waves. Each successive Western overreach for not just maintaining but expanding its global hegemony has produced a new wav of Russian alienation. What will probably be the last wave, one that might help spark a wave of ultra-nationalism afterward has begun. This new wave is alienating the West’s last base of support for Russian democratization and international cooperation: Russia’s liberals.…
What Westerners don't understand about the USSR and Stalin is that Stalin was the figure that arose to meet Western aggression — as it turned out chiefly from Germany — although the rest of the West was behind the overthrow of the Bolshevik government, too. The cost was high, but Stalin's leadership  prevailed. Russians are rightly proud of this achievement and justly so.

Western criticism of Stalin's excesses seem hypocritical given that the US Founding Fathers from the South were all most all slave holders and even bred slaves for sale, and slavery was legal in the US Constitution. The US also fought a much more bloody civil war than the Russian Revolution. But George Washington is revered, as is Thomas Jefferson as national heroes and patriots. Slave holder and slave breeder Jefferson, who fathered children into slavery had the temerity to write the Declaration of Independence, considered a key document of Western liberalism.

Formerly feudal Russia industrialized and created the necessary armaments to defend itself from the Nazi onslaught. Immediately after the end of WWII, the USSR faced the onslaught of the Western Allies, who integrated formerly Nazi forces into its war machine. For many Russians, Stalin was a national hero even though he was Georgian rather than Russian.

Russians realize that they face a similar threat now and have reacted accordingly. In addition, what sympathy the people had for the West was lost when the US bombed Serbia and NATO began advancing on Russia's borders. Respect for Western capitalism, democracy and values also began evaporating with the "liberalization" of Russia that almost destroyed the country and brought the oligarchs ("Russian Mafia") to power.

The first rule of geostrategy was enunciated by Clausewitz:  "Don't march on Moscow." Field Marshal Bernard Montgomery enunciated the second rule:  “Don't go fighting with your land army on the mainland of Asia."

The notion that either nationalistic Russia or China, or both, are going to cave to the West or be subject to color revolution is just daft.

"Don't march on Moscow," and, “Don't go fighting with your land army on the mainland of Asia."

Russian and Eurasian Politics
The West’s Alienation of Russia: The Next Wave
Gordon M. Hahn, analyst and Advisory Board member at Geostrategic Forecasting Corporation, member of the Executive Advisory Board at the American Institute of Geostrategy, a contributing expert for Russia Direct, a senior researcher at the Center for Terrorism and Intelligence Studies, Akribis Group, and; and an analyst and consultant for Russia – Other Points of View

Whitney Webb — Washington Follows Ukraine, Syria Roadmap in Push for Venezuela Regime Change

For that reason, if the Trump administration’s attempt to simply install a Venezuelan president fails to produce the intended result (regime change), there is substantial concern that the U.S. will turn to other means to bring about a change in government, including the instigation of a new proxy war.
While direct military intervention by the U.S. has not been ruled out, it has long been seen as more probable — based on the U.S.’ troubling history of ousting leftist Latin American governments through right-wing coups — that the U.S. would follow the roadmaps it used to push for regime change in both Syria and Ukraine. In other words, the danger of another major proxy war — this time in Latin America — looms large and, much like what has transpired in Syria and Ukraine, the manufacture of such a conflict would again pit the U.S. against both Russia and China, both of which have invested heavily in Venezuela, and by extension in the current government, for nearly two decades.

Also troubling is the fact that the U.S. has already laid much of the groundwork for such a proxy war and the chaotic situation on the Venezuelan-Colombian border offers U.S. intelligence enough cover to funnel arms, money and personnel into Venezuela to further destabilize the country. If Maduro is to be believed, the U.S. has already been doing this for much of the past year....
MintPress News
Washington Follows Ukraine, Syria Roadmap in Push for Venezuela Regime Change
Whitney Webb


Jill Stein - Venezuela Tweet


US has backed right-wing coups up and down Latin America for 100+ years. Not one was about democracy. All have been to enrich the global elite. But we’re supposed to believe this time in Venezuela - which has the world’s largest oil reserves - is different?

Stephanie Kelton on "makers and takers" and Tom Hickey on economic rent


Stephanie Kelton posted couple of tweets that ignited a firestorm. While I seldom comment on Twitter, for lack of time rather than interest, I responded since I think that MMT economists must address the causes of inequality, not only economic but also social and political, because they intersect.



The discussion continued on FB, where I added the following comment.
Think extraction of economic rent as unearned gains, e.g., financial rent, monopoly and monopsony rent, land rent and natural resource rent. Rent extraction began with expropriation of the commons and slavery in ancient times and has been refined since then, although both are still operative.
Socialization of negative externalities is also a from of rent, as is crime, of which corruption is no small instance. In a so-called capitalist society, wealth generates political power and policy and regulation that benefit special interests through regulatory capture and even state capture are also a form of economic rent.
Under pure capitalism, an unattainable ideal, there would be no rent extraction since all gain in addition to that which is needed to bring goods to the market would be competed away. If this is not happening, see why.
The right wing solution is to try to achieve the idealistic world of pure capitalism, which means decentralization and small business and farms. Not gonna happen. 
The left wing solution is to preempt the causes of economic rent extraction as far as possible and tax away the rest. Neoclassical economists know this but don't talk about it.
It needs to be put on the table. Good on Stephanie for doing it.
Economic rent leads to wealth concentration, and wealth concentration leads politically to oligarchy and plutonomy. Eventually this breeds social dysfunction and in hard times social unrest and revolt.

Craig Murray — The Vultures of Caracas

These are not the poor and most certainly not the starving. As it chances I have a great deal of life experience working amongst seriously deprived, hungry and despairing people. I know the gaunt face of want and the desperate glance of need. Look at these Guaido supporters, one by one by one. This designer spectacled, well-coiffed, elegantly dressed, sleekly jowled group does not know hunger. This group does not know want. This is a proper right wing gathering, a gathering of the nicely off section of society. This is a group of those who have corruptly been siphoning Venezuela’s great wealth for decades and who want to make sure the gravy train flows properly in their direction again. It is, in short, a group of exactly the kind of people you would expect to support a CIA coup.

Those manicured hands raised in the air will never throw rocks, or get involved in violence unless against a peasant strapped to a chair for them. It is not this crowd which will suffer as public disorder is manipulated and directed by the CIA. These wealthy ones are immune, just as Davos serves as nothing but an annual reminder of how very poorly God aims avalanches.
There is real suffering in Venezuela. The CIA is working hard to stoke violence, and the genuine poor will soon start to die, both in those egged on to riot and in the security services. But do not get taken in by the complete nonsense that this is a popular, democratic revolution. It is not. It is yet another barefaced CIA regime change coup.
These are not the poor and most certainly not the starving. As it chances I have a great deal of life experience working amongst seriously deprived, hungry and despairing people. I know the gaunt face of want and the desperate glance of need. Look at these Guaido supporters, one by one by one. This designer spectacled, well-coiffed, elegantly dressed, sleekly jowled group does not know hunger. This group does not know want.
This is a proper right wing gathering, a gathering of the nicely off section of society. This is a group of those who have corruptly been siphoning Venezuela’s great wealth for decades and who want to make sure the gravy train flows properly in their direction again. It is, in short, a group of exactly the kind of people you would expect to support a CIA coup.

Those manicured hands raised in the air will never throw rocks, or get involved in violence unless against a peasant strapped to a chair for them. It is not this crowd which will suffer as public disorder is manipulated and directed by the CIA. These wealthy ones are immune, just as Davos serves as nothing but an annual reminder of how very poorly God aims avalanches.
There is real suffering in Venezuela. The CIA is working hard to stoke violence, and the genuine poor will soon start to die, both in those egged on to riot and in the security services. But do not get taken in by the complete nonsense that this is a popular, democratic revolution. It is not. It is yet another barefaced CIA regime change coup....
Free Venezuela! — Because deposing the democratically elected government of Iran under Prime Minister Mossadegh and installing the Shah as a Western puppet through a CIA/MI6 coup d'etat worked so well. Oh, wait!

We may be tempted to personalize these matters but in my experience that would not be correct, although in some cases it likely is. Having known some of the elite, both domestic and foreign, including Latin America, I found them very nice people, and I certainly do not think that they they believe that they are acting out of line with either reality or immorally.

The problem is with the system, with capitalism being the next iteration of feudalism and bringing along much of the same ideological baggage with it, such as class privilege. History seldom if ever wipes the slate clean.

The problem is with the software, so to speak. While humans are wired pretty much the same, they have different operating systems (world views) and different applications that run on these operating systems, to stretch the analogy. What each takes to be "reality" is a product of one's world view.

Within a world view, different ideologies compete. Thus, the elite of a society may have a general world view with factions of it espousing different ideologies, while the "little people" (Alan Simpson) and "deplorables" (Hillary Clinton) have another world view within which there are also different ideologies. This implies not only different values and criteria but also different construction of "facts."

From the dialectical point of view, either Hegelian idealistic or Marxist materialistic, this is the working out of the dynamics of human development — evolution — in a broad sense that includes both genetic and cultural — "nature and nurture" — that unfolds itself in a series of historical moments characterized by its distinctive Zeitgeist.

Within this historically determined dynamic, internal "contradictions — Widerspruch means "contradiction" and and also "opposition" and "conflict" — arise. Moments succeed each other as wave rising in the ocean and breaking on the beach as the rising and falling waves interact, sometime violently, especially as the wave that is about to fall begins to crest.

Just as capitalism succeeded feudalism as the next wave; so too, the world is now in the process of transformation to the next iteration in the historical dialectic. Those who are privileged in the present wave generally resist this transformation based on their dominant ideology, which is "bourgeois liberalism." They overlook the parallels of the present day ownership classes to the aristocracies and lesser privileged classes under feudalism.

If we lose wight of the big picture, we get sucked into the details and lose awareness of the forest for the the trees.

This present conflict that is now engulfing the world is an iteration of the ongoing class struggle writ large in the news as the torch passes into new hands and the ancien régime — the "liberal world order" — struggles to maintain its control.

The most recent struggle was between fascism and liberalism, with liberalism winning. Yet, certain aspects of fascism were brought along, sometimes consciously and intentionally as with the integration of formerly fascist forces into the coalition against "Soviet communism."

Now the struggle is between the victorious liberalism and a resurgent traditionalism, one one hand, and a mostly victorious capitalism against the next iteration of socialism.

It would be a great mistake to personalize this dynamic at the expense of missing the essence of what is unfolding. This has to be viewed in terms of the overall dynamic of world history and evolutionary theory. Perennial wisdom also put this into perspective but not "naturalistically."

At any rate, much of this focus is in the process of shifting as the threat of climate change becomes more recognized publicly. In addition, the millennial generation has recently become the largest, replacing the boomers. These two conditions, one ecological and other demographic, are going to predominate.

Climate change is going to change the fundamental dynamic of energy use, which will affect everything. There is as yet no solution on the table that experts agree will meet the challenge that humanity faces. Much of the world is still in denial. When that is no longer possible, the historical dynamic will shift like tectonic plates. There will be "earthquakes."

Shifting demographics will shift political control to a new generation that is digitally native as the world enters the next age, with the Industrial Age that replaced by the Agricultural Age now being replaced by the Digital Age. This implies not only new ideologies but rise of a different mindset.

We are in a phase transition from one state to another. Buckle up!

Craig Murray Blog
The Vultures of Caracas
Craig Murray, formerly British ambassador to Uzbekistan and Rector of the University of Dundee

Friday, January 25, 2019

Mark J. Valencia — Consequences Of The US-China Contest For Asia – Analysis

In the past, Asian countries were often prioritized by US analysts and policy makers as to their degree of pro American-ness. But now they are increasingly being assessed as to the kind and degree of accommodation to China. The US cannot match China’s economic prowess and largesse and seems to hope that its political, social and economic systems and –more importantly– its values will be sufficient to keep much of Asia in its camp. But this is increasingly proving to be a false hope. So the U.S. is falling back on its tried and true advantage—dominant military power and the threat of its use. But even in this sphere China is making rapid advances and the looming specter of its eventual domination of the region is progressively stimulating hedging and even forcing some Asian countries to consider choosing between the two.…
And this is only going to increase. Sounds like a Thucydides trap to me.

Worse for the US, not only has Russia been driven into a de facto alliance with China but the US has failed so far to draw India into its camp. See below.

For a country that can't beat the Taliban.…

Eurasian Review
Consequences Of The US-China Contest For Asia – Analysis
Mark J. Valencia

See also

Strategic Culture Foundation
Russia, China, India and Iran: The Magic Quadrant that Is Changing the World
Federico Pieraccini

Andrew Buncombe — Official convicted over Iran-Contra scandal [Elliott Abrams] appointed to help 'restore democracy' in Venezuela

Bringing in the hit man. Remember Elliott Abrams of Latin America death squad fame? Now that is real chutzpah.

It also shows that there is zero accountability at this level of government. Of course, that is bipartisan. Obama gave torturers get out of jail free cards to "move forward."
For many Latin America watchers he will be associated with his denial of a 1982 massacre at El Mozote in El Salvador of hundreds of civilians by the military. Mr Abrams told a Senate committee that the reports of hundreds of deaths at El Mozote “were not credible.”
In 1993, after a UN truth commission which examined 22,000 atrocities that occurred during the twelve-year civil war in El Salvador, attributed 85 per cent of the abuses to the Reagan-assisted right-wing military and its death-squad allies, Mr Abrams said: “The administration’s record on El Salvador is one of fabulous achievement.”
The Independent (UK)
Official convicted over Iran-Contra scandal appointed to help 'restore democracy' in Venezuela
Andrew Buncombe

See also

Now the Trumpistas are recognizing that Trump is compromised, and not by Putin.

Breitbart
Trump Appoints Never-Trumper Elliott Abrams Envoy to Venezuela
Kristina Wong


Scott Sumner — Tax-and-spend progressives put faith in flawed policy theory


Scott Sumner — he of NGDP futures to control inflation — is an Austrian economist. I already addressed this once today. That's enough. They are never going to change their assumptions because if they did, they would no longer be Austrians.

In fairness to other Austrian economists, Scott Sumner is off on a tangent here rather than applying Austrian analysis. His historical comparisons are shot from the hip and silly.

The Hill
Tax-and-spend progressives put faith in flawed policy theory
Scott Sumner, Opinion Contributor

Stan Veuger — MMT's central idea is neither new nor helpful

AEI's Stan Veuger is back with new anti-MMT screed. Hey, that's what he gets paid for.

His first points is this:
The first point is that it is not a controversial claim among economists that countries can create money to meet obligations denominated in their own currency. For some reason, perhaps because there isn’t much else to the theory, MMT proponents treat this claim as an incredibly important discovery they have made, and acceptance of it by others as major victories.
But the author is forced to admit right off the bat that the MMT claim that a currency sovereign is self-funding is self-evident. He even cites Alan Greenspan's testimony to that effect. It's a tautology given the definition of sovereignty. If a state gives it up, it is no longer fully sovereign. The US state gave up currency sovereignty to the federal government when they joined the Union, and the EZ states gave up theirs to the ECB.

This makes clear that those that have been claiming that the US government faced default or could go bankrupt were either morons or propagandizing for an ideology. That's just about all the Very Serious People — right up to the President of the United States.

The second point is this:
The second point worth emphasizing here is that the fact that you can do something does not imply that you should do it. Just because you can always print enough money to pay off your local-currency debt does not mean that you should take on large amounts of such debt, or, indeed, that it is always optimal to print large enough amounts of money to pay off your local-currency debt...
Well, doh. What MMT economist ever said that the ability to spend alone dictates the optimal amount to spend in a given context? None.

His other objections have to do with special cases that are dealt with in the MMT literature, along with many other special cases. Application of MMT is not a mindless operation of applying a simple fiscal rule and pushing a button.

First, there is no default risk for a currency sovereign but this doesn't imply that conditions are always such that every currency sovereignty can conduct fiscal policy without limitation. Some states are clearly limited by supervening conditions. 

Secondly, a sovereign can always voluntarily choose to default on its debt even though it is not operationally necessary. That is a political choice.

Digging deep into the barrel?

AEIdeas
MMT's central idea is neither new nor helpful
Stan Veuger

Kai Ryssdal, Maria Hollenhorst, and Rose Conlon — Ever heard of modern monetary theory?


Simple stock-flow analogy using faucet, sink, and drain. Too simplistic, maybe, but it gets the fundamental point across.

What this analogy focuses on is inflation and the sweet spot. But there is also not enough flow so that stock becomes low (deflation).

The available policy space is between inflation and deflation. The sweet spot is optimal deployment of real sources including human resources (full employment). 

This would be difficult to impossible to hit using discretionary fiscal policy alone. The residual is handled with automatic stabilization and a guaranteed job opportunity that matches workers with work in their locale.

Marketplace
Ever heard of modern monetary theory?
Kai Ryssdal, Maria Hollenhorst, and Rose Conlon

Greg Grandin and Elizabeth Oglesby — Washington Trained Guatemala’s Killers for Decades

Throughout the Cold War, Washington intervened multiple times in Guatemala, funded a rampaging army, ran cover for the death squads that its own security agents—like Longan—helped create, and signaled that it would turn a blind eye to genocide. Even before Ronald Reagan’s 1980 election, two retired generals with prominent roles in his campaign traveled to Central America and told Guatemalan officials that “Mr. Reagan recognizes that a good deal of dirty work has to be done” (for this quote, see Allan Nairn’s report “Controversial Reagan Campaign Links With Guatemalan Government and Private Sector Leaders,” published by the Council on Hemispheric Affairs on October 30, 1980). Once in office, Reagan supplied munitions and training to the Guatemalan Army to carry out that dirty work (despite a ban on military aid imposed during the Carter administration, since existing contracts were exempt from that ban). Reagan was steadfast in his moral backing for Guatemala’s génocidaires, calling de facto head of state Gen. Efraín Ríos Montt, who seized power in a coup in the spring of 1982, “a man of great personal integrity” and “totally dedicated to democracy.”….
The Nation
Washington Trained Guatemala’s Killers for Decades
Greg Grandin and Elizabeth Oglesby


Tom Luongo — Trump Betrays MAGA Over Venezuela

As Alistair Crooke succinctly put it last year at Strategic Culture:

The US – were energy dominance to succeed – simply would control the tap to the economic development – or its lack thereof – for rivals China, and Asia. And the US could squeeze Russia’s revenues in this way, too. In short, the US could put a tourniquet on China’s and Russia’s economic development plans. Is this why JCPOA was revoked by President Trump?
Here then, is the squaring of that circle (more US power, yet less empire): Trump’s US aims for ‘domination’, not through the globalists’ permanent infrastructure of the US defence umbrella, but through the smart leveraging of the US dollar and financial clearing monopoly, by ring-fencing, and holding tight, US technology, and by dominating the energy market, which in turn represents the on/off valve to economic growth for US rivals. In this way, Trump can ‘bring the troops home’, and yet America keeps its hegemony. Military conflict becomes a last resort.

Most of Trump’s supporters refuse to admit this is the plan. They still want to believe that National Security Advisor John Bolton and Secretary of State Mike Pompeo were thrust upon him by the nefarious Deep State.
And that Trump is a trapped hero in a cage yearning to breathe free and MAGA, if we just support him a little more. Nonsense.
Trump has been very clear about this policy for years. We take over these places, kill the bad people and pay for it all by stealing their natural resources, in this case oil.

It is Trump’s 17th century view on trade writ large....
Ben Norton

Robert P. Murphy — The Upside-Down World of MMT


I give Robert Murphy an "A" for at least trying to understand MMT assumptions and definitions, but it seems to me (I am not an economist) that he has not yet grasped the MMT understanding of the economic concept of saving.

I use "economic concept" to distinguish it from the ordinary language meaning. They are different and also have different meanings in different contexts, e.g., economic schools. The ordinary language meaning doesn't sufficiently distinguish portfolio as financial and real assets such as equities and real estate, and saving as a result of "income not spent," that is, cash in the bank.

Saving and what saving entails is a contentious area in economics, with each school having its own views. What Robert Murphy is saying is that if one accepts the Austrian view, then the MMT view fails in that its model is improperly constructed. 

Of course, no one view is accepted by all, which is not surprising since there no one view of practically anything, and even if there were, unanimity is no guarantee of truth.

In science, theories make predications — assumptions generate theorems — that can be formulated as hypotheses and tested empirically. This is difficult in the case of social science owing to the scope and scale involved and also ethical issues involving human experimentation, especially at the societal level. So one must appeal to history but history presents its own problems.

So while I applaud Robert Murphy's attempting to address this issue, it seems to be to remain on the level of pitting one system as a set of assumptions and definitions against another.

However, I see this as a healthy direction for the debate to heading since it is getting down to the nitty-gritty of looking at different models and their construction, and assessing them on their merits. 

A key requirement that MMT economists impose, which is one that most scientists do, is to operationalize terminology. The involves examining institutional arrangements. Money and finance are largely institutional creations.

Richard Murphy states what he takes as obvious based on the barter model that he presents and which lies at the heart of Austrian, classical and neoclassical models, but which Keynes rejected. Neo-Keynesians are neoclassicals.
The whole benefit of private saving is that it allows for more private investment. 
For Keynes and those that follow this analysis, investment causes saving instead of the other way around. Many of the arguments in economics are over the direction of causality. 

Correct imputation of causality is based on sound analysis of operations involved. Here, this involves a different view of money and finance than the other schools hold, such as loanable funds and money neutrality. This "endogenous" view has been elaborated by Post Keynesian and MMT economists. But that is beyond the scope of this undertaking.

 Mises Daily
The Upside-Down World of MMT
Robert P. Murphy

Stephen F. Cohen — The End of Russia’s ‘Democratic Illusions’ About America—How Russiagate has impacted a vital struggle in Russia

But what should interest us is how Russiagate allegations have tarnished America’s democratic reputation in Russia and thereby undermined the pro-American arguments of Russia’s liberal democrats, who were never a very potent political or electoral force and whose fortunes have already declined in recent years. Consider the following:...
Not that the current US administration is essentially different from previous ones. It's just more blatant. These things don't happen overnight.

The Nation
The End of Russia’s ‘Democratic Illusions’ About America—How Russiagate has impacted a vital struggle in Russia
Stephen F. Cohen | Professor Emeritus of Russian Studies, History, and Politics at New York University and Princeton University

Craig Murray — The Coup in Venezuela Must Be Resisted

When I was in the FCO, the rule on recognition was very plain and very openly stated – the UK recognised the government which had “effective control of the territory”, whatever the attributes of that government. This is a very well established principle of international law. There were very rare exceptions involving continuing to support ousted governments. The pre-1939 Polish government in exile was the most obvious example, though once Nazism was defeated Britain moved to recognise the Communist government actually in charge, to the fury of exiled Poles. I was involved in the question of the continued recognition of President Kabbah of Sierra Leone during the period in which he was ousted by military coup.
But I can think of no precedent at all for recognising a President who does not have and has never had control of the country – and has never been a candidate for President. This idea of the West simply trying to impose a suitably corrupt and biddable leader is really a very startling development. It is astonishing the MSM commentariat and political class appear to see no problem with it. It is a quite extraordinary precedent, and doubtless will lead to many new imperialist adventures....
The world order is now in new territory, and it is regressive.

Craig Murray Blog
The Coup in Venezuela Must Be Resisted
Craig Murray, formerly British ambassador to Uzbekistan and Rector of the University of Dundee

Oliver Haynes — Gilets Jaunes under attack

Many figures of the European establishment regard Emmanuel Macron as the saviour of the European project. Yet his response to these protests – violence, mass arrests and the reinstatement of national service for 16-year olds – would hardly be out of step with the more retrograde national populist and authoritarian regimes. If Emmanuel Macron wants to save his reputation, let alone Europe, he must start leading by example, ban the flashball, and take these protests seriously rather than continuing to lapse in moments of anger into diatribes about scroungers while he lets the riot cops run riot against protesters.

Macron’s response suggests what other leaderless protest movements across Europe will face as systems continue to collapse. The Gilets Jaunes have arisen out of the profound inequality that is fracturing societies across Europe. It is against that inequality that leaders must take a strongman stance. There is nothing strong about attacking protestors who are just trying to make their voices heard....
If the reaction to Occupy didn't already put to rest all the faux outrage about violent suppression of dissent in countries that the US doesn't like, this should. But it won't. Double standard, you see.

Liberalism is revealing its real face as "bourgeois liberalism" as the rule of the ownership class based on class privilege. The myth of liberalism as the "end of history"is foundering on the rocks of open revolt by the oppressed.

Open Democracy
Gilets Jaunes under attack
Oliver Haynes

See also

People's Dispatch
In their tenth week of protests, Yellow Vests face brutal police crackdown
Muhammed Shabeer


Matias Vernengo — On the crisis in Venezuela

The numbers are from the World Bank Development Indicators up to 2016, and then I use the IMF estimates of growth (actually decline) from the World Economic Outlook database. So this is a brutal collapse, something the US government is doing, even at the price of some costs to local refineries, in order to promote regime change in Venezuela. Whatever your views on Maduro and the Chávez period, note that the US is fine with Saudi Arabia. Trump and Dems before too. And remember that Obama tightened the embargo as one of his last measures. Double standards are incredible, and difficult to defend....
Naked Keynesianism
On the crisis in Venezuela
Matias Vernengo | Associate Professor of Economics, Bucknell University

See also

The tell.

Only Tulsi Gabard passes the test with an unconditional answer. Bernie waffles and the rest are silent so far.

In These Times
Where Are Democratic 2020 Hopefuls on the Trump-Backed Coup Attempt in Venezuela?
Marco Cartolano

Karl W. Smith — Democrats Will Profit From Trump's Populism

Likewise, Ocasio-Cortez has forced elites on both sides to at least grapple with the economic tenets of modern monetary theory. MMT, as it is known, suggests that a government with its own currency does not need to raise taxes in order to increase spending. So far MMT has faced strong pushback from elites of the left and right. But its basic contention, that deficit spending isn’t as bad as you have been led to believe, is gaining support.
These two propositions — that the government should check the power of private-sector billionaires and should spend freely to alleviate social ills — form the core of the classic leftist platform. And these positions are becoming more influential, not less, in the Democratic Party....
Bloomberg Opinion
Democrats Will Profit From Trump's Populism
Karl W. Smith

MMT at Davos


What the Davos crowd is talking about.

SFGate
Among some in Davos, debate over Ocasio-Cortez's proposed 70 percent tax on rich is over
Hamza Shaban, The Washington Post

See also

NY Post
How elite financiers feel about Ocasio-Cortez's proposed wealthy tax
Jaron Steinbuch