Home » xyzzy » Dungeon » Modern Monetary Theory (or, how I stopped worrying about the natl debt.)
Modern Monetary Theory [message #88755] Mon, 03 September 2018 14:25 Go to next message
Rusty is currently offline  Rusty
Messages: 169
Registered: May 2018
Location: Kansas City Missouri
Master
Figured this a dungeon topic with it's political implications.
I've been drawn to this economic theory for a few years now as my occupation was affected by the economic downturn of 07-08. Like so many. What interested me was this notion that we hear of the national debt as being something that is ominous and foreboding which will affect generations to come. The standard line in political discourse. Modern monetary theory or, MMT regards this notion as a cop out for austerity. As one prominent MMT economist Bill Mitchell describes the intention of this unorthodox aspect of economics, is the notion that MMT can be liken to a "lens", focusing on what is really just how the function of a sovereign issuer of fiat currency operates within a financial system. And what it shows in it's realization of our currency and it's usage is a disconnect with fiscal policy and the reality of how this system works. It's interesting to note that Japan is actually writing down about half of it's national debt which is about double of it GDP.
The mystery of the national debt: http://neweconomicperspectives.org/2018/08/the-explicable-mystery-of-the-national-debt.html#more-11306
MMT simplified: https://modernmoney.wordpress.com/
When I hear a politician, (on either side) bloviating about the debt and future generations, anymore I just raise an appropriate finger and utter go blow.
Re: Modern Monetary Theory [message #88757 is a reply to message #88755] Mon, 03 September 2018 14:56 Go to previous messageGo to next message
Kingfish is currently offline  Kingfish
Messages: 352
Registered: November 2012
Grand Master
In other words, the current financial system is above the heads of the politicians. Makes sense to me.

Politicians like to take things down to the lowest common demoninator in order for us to get all riled up. In this case, they do it because they themselves don't understand this.
Re: Modern Monetary Theory [message #88805 is a reply to message #88757] Sun, 09 September 2018 11:23 Go to previous messageGo to next message
Rusty is currently offline  Rusty
Messages: 169
Registered: May 2018
Location: Kansas City Missouri
Master
Unfortunately the current financial system is above the heads of mainstream economists. Politicians just ape what the conventional seemingly unchallangeable economic doctrine is. Then they make sure the policies they enact make good on the needs of the few whom support them financially.
Re: Modern Monetary Theory [message #88813 is a reply to message #88805] Tue, 11 September 2018 16:43 Go to previous messageGo to next message
gofar99 is currently offline  gofar99
Messages: 1428
Registered: May 2010
Location: Southern Arizona
Illuminati (3rd Degree)
Maybe we could go back to a barter system......I'll give you two chickens if you will fix my roof leak. Humm. Rolling Eyes I wonder how many chickens I can raise before the city get on my case? Laughing

Good Listening
Bruce
Re: Modern Monetary Theory [message #88817 is a reply to message #88813] Wed, 12 September 2018 10:12 Go to previous messageGo to next message
Rusty is currently offline  Rusty
Messages: 169
Registered: May 2018
Location: Kansas City Missouri
Master
Or we could evolve capitalism into a democratically run system where workers have a say in the game. Worker cooperatives. The market system can be contrived any way humans can think of. From barter, to slavery then feudalism to capitalism, communism, socialism. What ever provides the best outcome for the better percentage of people.
https://www.rdwolff.com/capitalism_is_not_the_market_system
Re: Modern Monetary Theory [message #89839 is a reply to message #88817] Sun, 17 February 2019 18:09 Go to previous message
Rusty is currently offline  Rusty
Messages: 169
Registered: May 2018
Location: Kansas City Missouri
Master
Here we go friends. A nice condensed interview with Eric Tymoigne. An economist following MMT principals. Hysteria will be building over the national debt as the 2020 presidential race heats up. Oh Boy!! It's not the debt that should be obsessed over, he says. It is the issues. Our collective well being for society that debt expenditure is good for. Not tax cut's for the billionaire, millionaire class wealth enhancement's to invest. Sovereign governments issuing legal notes do not function like the budgets of households, businesses, towns and cities or states. But that doesn't keep everyone and their aunt Shirley from thinking it must be. Especially the politician. Propaganda and ignorance goes hand in hand. Here's the condensed interview, (to whom it may interest), minus all the charts and things economists use to make their point. To them. They make my eye's cross.

http://neweconomicperspectives.org/2019/02/what-you-need-to-know-about-the-22-trillion-national-debt-the-alternative-short-interview.html#more-11409


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