Home » xyzzy » Dungeon » Modern Monetary Theory (or, how I stopped worrying about the natl debt.)
Re: Modern Monetary Theory [message #94032 is a reply to message #94022] Thu, 15 July 2021 10:07 Go to previous messageGo to next message
Rusty is currently offline  Rusty
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A supplemental to what's above and what Mr. Hudson has been stating for years now. The Federal Reserve system serving as an enabler to the financial systems gambling disease. On the PBS Frontline documentary series. https://www.pbs.org/wgbh/frontline/
Using MMT principals the wrong way.
Re: Modern Monetary Theory [message #94033 is a reply to message #94032] Thu, 15 July 2021 11:22 Go to previous messageGo to next message
Wayne Parham is currently offline  Wayne Parham
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I watched an interesting documentary this weekend. It was hosted by Kal Penn, who worked as a staff member of the Obama administration. So those that lean "left" politically might find this attractive. But I don't think "right-leaning" people would be offended either, because the series appeared refreshingly politically-neutral.
Re: Modern Monetary Theory [message #94034 is a reply to message #94033] Thu, 15 July 2021 13:03 Go to previous messageGo to next message
Rusty is currently offline  Rusty
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That does look interesting. I heard the word trust mentioned several times in regards to money and it's value. That is what the principal of any sovereign governments money supply comes down to. Trust in that it's issued currency is the only way to pay taxes with. And it's bond notes will always be honored at it's maturity with a little extra interest. In the Frontline doc., some of the most vocal critics of the Fed's monetary easing policy are themselves the financial players.

MMT principals are being sought out by the financial market institutions for their ability in predicting world economic conditions to make better investment decisions.
Re: Modern Monetary Theory [message #94035 is a reply to message #94034] Thu, 15 July 2021 14:41 Go to previous messageGo to next message
Wayne Parham is currently offline  Wayne Parham
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Yes, one of the main points in that documentary series is that fiat currencies are based on trust. All parties using the currency must trust one another to accept the currency at an agreed value.

Which is exactly what causes me the most concern with escalating national debt. It would seem to me that increasing debt will cause other nations to lose trust in America's ability to pay. The world might no longer see the American dollar as the reference standard currency.
Re: Modern Monetary Theory [message #94036 is a reply to message #94035] Thu, 15 July 2021 16:07 Go to previous messageGo to next message
Rusty is currently offline  Rusty
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There is good debt and bad debt. When the government creates a deficit. It can be spent in the good for the economy. Such as the infrastructure bill being bandied with now. Or for social good as is Social Security, Medicare, child care, education. Things that give value to a society and a working class that actually creates things and can thrive better so with a low cost of living.

But this bail out of the financial sector for every bubble they create that bursts from speculation and greed is an abomination on society. They create nothing but, as the classical economist Adam Smith warned of, "income in their sleep". Which feathers the portfolios of the elite rich.

The world is moving away from the dollar just because of our financialized diplomacy in conjunction with the World Bank & the International Monetary Fund creating austerity. The move now is towards a universal currency to use in trade deficits and exchanges. Which is what Keynes had proposed originally at the Bretton Woods conference. America had the upper hand and wanted to have all the advantage of a dominant dollar exchange. And could with Europe, Asia and Crimea in ruins from WW2. We had our time, and we've squandered it with our financialization of our economy. China has emerged with a mixed economy we used to have in our golden era. Their banking is not allowed speculation in their charter. They have followed the west's economic playbook for success and so far avoided the pitfall of allowing the excesses of the financial class from overtaking their government.
Re: Modern Monetary Theory [message #94037 is a reply to message #94036] Thu, 15 July 2021 17:44 Go to previous messageGo to next message
Wayne Parham is currently offline  Wayne Parham
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Agreed. There are expenses that are required, and those that benefit all. There are expenses that provide healthy benefits and/or returns. Then there are expenses that are just wasteful, greedy or slothful. I think it's important to separate the wheat from the chaff when determining what we spend our money on, or I suppose I should say what we take on as debt.

And I agree with you that the bad-actors are those with the deepest pockets. I agree with you on the idea that it's "corporate greed" doing the worst. But I think our government is a part of that equation, and that both sides of the aisle are equally responsible. They just each have a different set of loyalties, and different groups they're entangled with. I don't really like what I've seen for the past couple of decades, at least. It looks like it just keeps getting worse.
Re: Modern Monetary Theory [message #94041 is a reply to message #94037] Fri, 16 July 2021 09:50 Go to previous messageGo to next message
Rusty is currently offline  Rusty
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We are unanimous. Both of our inadequate parties are entangled in a wanton, wasteful path crippling our economic wellbeing. Going now from one calamity to another. Propping up an entitled elite from any suffering, they created.

There are some good ideas that the non-orthodox professional economic community have to restructure our economy. It would take though some self critical political evaluation.
Steve Keen is another Australian economist with a very acute grasp of what could ameliorate some of the dysfunction we chronically endure with the current status quo allowed. As if it will ever work itself out as by how nature does reaching an equilibrium.
A serving of Macro n Cheese.
http://www.debtdeflation.com/blogs/2020/12/19/discussing-a-modern-debt-jubilee-on-macroncheese/
Re: Modern Monetary Theory [message #94078 is a reply to message #94041] Wed, 21 July 2021 17:25 Go to previous messageGo to next message
Rusty is currently offline  Rusty
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Rethinking our exceptionalism. This I happened onto from the good old Roku device today. From 2018 an interview with Jeffery Sachs about his then new book, A New Foreign Policy: Beyond American Exceptionalism. A phrase that has become a bit frayed and frankly, a joke. Like the founders of our nation with a phrase then that should be taken serious now. United we stand, divided we fall. Our politics and society really need to take a hard look at where we're at, at this time in our history.

https://www.youtube.com/watch?v=kZU0IXO7AQw
Taking up a mere 18:46 minutes of your time.
Re: Modern Monetary Theory [message #94104 is a reply to message #94078] Tue, 27 July 2021 16:16 Go to previous message
Rusty is currently offline  Rusty
Messages: 572
Registered: May 2018
Location: Kansas City Missouri
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Another fine Roku-Youtube find. Here's an interview with Prof. David Harvey on the history of neoliberalism and it's chokehold on the world economies. But shucks, he's an anthropologist. That's alright, most economist are taught to embrace neoliberalism much like how dogs are trained to comply masterfully with humans to be more docile and obedient. As in the prior video with Michael Hudson. A first year econ. student in a phone in Q&A prefaced his question to him perhaps sounding a bit infantile with his question to Mr. Hudson. To which Hudson exclaimed, "No... wait until you've gotten your PHD in orthodox economics, then you'll sound infantile".

Anyway, Mr. Harvey here is very shrewd with his knowledge of the goings on with our deceptive masters of finance. Laying it out with Chris Hedges in two parts.
https://www.youtube.com/watch?v=D-YO5EROH-I&t=1s
and
https://www.youtube.com/watch?v=4jVflZWGrQk
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