MMT IN 10 MINUTES and some Quotes to consider
I know I know….this “economist” Stephanie Kelton is considered a charlatan by Traditional Economists
But what IF Traditional Economists are wrong ?
This MMT is NOT FED driven …It is NOT something the present System embraces
It is something quite different . it is Government taking control of the Money supply on a greater and greater percent basis and banks and ergo the FED taking less control .
I am just trying to understand.
Should we just dismiss this stuff as left wing commie pinko craziness..without even understanding it ?
Should we dismiss it because AOC and Bernie endorse it ?
Read these explanations watch the videos and draw your own conclusions.
If you still think it’s a bad idea then at least your opinion is informed.
https://www.cnbc.com/video/2019/03/01/stephanie-kelton-explains-modern-monetary-theory.html
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Now for some contriversial quotes 🙂
“The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.”
Daniel J. Boorstin
“You are not entitled to your opinion. You are entitled to your informed opinion. No one is entitled to be ignorant.”
Harlan Ellison
“There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that ‘my ignorance is just as good as your knowledge.”
Issac Asimov
“Being ignorant is not so much a shame, as being unwilling to learn.”
Benjamin Franklin
“Our wretched species is so made that those who walk on the well-trodden path always throw stones at those who are showing a new road.”
Voltaire, Philosophical Dictionary
“To know that you do not know is the best.
To think you know when you do not is a disease.
Recognizing this disease as a disease is to be free of it.”
Lao Tzu
……………
“It’s a fact—everyone is ignorant in some way or another.
Ignorance is our deepest secret.
And it is one of the scariest things out there, because those of us who are most ignorant are also the ones who often don’t know it or don’t want to admit it.
Here is a quick test:
If you have never changed your mind about some fundamental tenet of your belief, if you have never questioned the basics, and if you have no wish to do so, then you are likely ignorant.
Before it is too late, go out there and find someone who, in your opinion, believes, assumes, or considers certain things very strongly and very differently from you, and just have a basic honest conversation.
It will do both of you good.”
? Vera Nazarian, The Perpetual Calendar of Inspiration
https://www.youtube.com/watch?v=irJJezVgkfo
Seriously, Fully? This claptrap video is so chock full of nonsense and so lacking in logic and hard evidence it is laughable. I could not get through the whole video. MMT is an attempt to give government “permission” do destroy everything of value. Which is what we are experiencing and witnessing before our very eyes. Case in point: she says Japan running a deficit of 236% of GDP has not shown to have any inflation, and ergo no ill effects. I’m sure if you checked with the Japanese they would tell you some wonderful stories of the ill-effects of bottomless deficits…a nation mired in endless stagnation. And about to experience the same collapse we are undergoing.
Get real. MMT is a con job wherein people expect to get something for nothing. If people at the Tent cannot deal with the basic concept of money as a store of value then the world is indeed doomed to Armageddon. The speaker in the video is an absolute twit selling snake oil.
I respectfully disagree .
This makes sense to me
It is far superior to what we have at the moment….which has been the real con job.
See that last quote and see if it applies to you ..as you couldnt get thru a 10 minute video with those blinders on.
Yes Japan is not growing BUT without 236% of GDP deficits it would have crashed back to the stone age.
I have a Japanese Friend ( email buddy) who claims his life is very good over there. Most people are satisfied with their lives and standards of living.
There is Growth , No Growth , and Negative growth
With out Deficits you get strongly negative growth….
all IMHO
If the core premise of an argument is incorrect, then there is no need to listen to the rest of the argument.
If MMT was true, then all the Soviet Union would have had to do to keep afloat was to increase deficits, according to MMT. An open mind does not preclude logic and thinking.
The Japanese who invest in their stock market would sing a very different story from your friend, methinks. The end game in Japan is coming soon, it’s been building for 30+ years.
The basic MMT assumption, unless you can point out to me otherwise, is that government printing money without restraint has no ill effects anywhere, any time. It also assumes that money is not a store of value. It also assumes that history is incorrect. It also assumes that we can get something for nothing. Unless, of course, with the superior understanding that comes from watching a complete 10 minute video, you can straighten me out.
What I hear from your comments – perhaps I am wrong, as I often am – is that government can fund good times forever with no price tag attached. I agree, that would be absolutely wonderful. Hard evidence, not theory, suggests otherwise. I cannot recall ever seeing or experiencing getting something for nothing working…and, BTW, there is no such thing as negative growth. That is an oxymoron. The correct term is contraction (or perhaps decline, or shrinking.)
I’m glad this makes sense to you. The proponents of MMT need all the help they can get.
You said you were trying to understand, but then you tell me it “makes sense” to you. Perhaps if you wrote down the “principles” she builds her explanation on and thought them through one by one, it might not make so much sense. The appeal is the party without the price. The first guy who tried that was John Law.
As for open-minded about new ideas, none of what I heard was a new idea. It was the same-old, same-old wrapped in brand new paper.
IMHO.
The basic MMT assumption, unless you can point out to me otherwise, is that government printing money without restraint has no ill effects anywhere, any time. It also assumes that money is not a store of value. It also assumes that history is incorrect. It also assumes that we can get something for nothing. Unless, of course, with the superior understanding that comes from watching a complete 10 minute video, you can straighten me out.
OK I’ll straiten you out
There are consequences if and when full capacity of the economy is reached…ie maximum efficiency and no unemployment
That is stated clearly…inflation is a risk
But in the USA we you are no where near either …but when it comes there will be massive inflation if the breaks are not put on the spending and or taxes increased.
So now everyone who takes an opposing viewpoint is ignorant? Count me in as ignorant – I’ll take the side of all recorded history!
And lastly, if deficits don’t matter and the government can spend whatever it wants without harm or negative consequences of any kind, then why collect taxes? That would be an unnecessary undertaking according to MMT’s argument…
You are missing that part of the equation.
The Govt creates money and spends it into the economy and the flip side is you have to use that currency to pay taxes ..which removes the currency from the equation
You didn’t even listen to any of that video…It is all explained ….The Owl Video is beter suited for you Boomer…its a cartoo and only 6 minutes…have a look…all this is explained in 6 minuets by an owl 🙂
And lastly, if deficits don’t matter and the government can spend whatever it wants without harm or negative consequences of any kind, then why collect taxes? That would be an unnecessary undertaking according to MMT’s argument…
perhaps something like this would help:
https://www.businessinsider.com/weekender-the-trouble-with-modern-monetary-theory-mmt-2011-1
Or this: https://thehill.com/opinion/finance/426862-tax-and-spend-progressives-put-faith-in-flawed-policy-theory
It’s only ignorant when you don’t at least take the time to understand the opposing view and then make an informed decision.
I am certain that not one of you learned a thing from these videos and articles..I am certain not one of you even listened or read them
For instance did you know ..when you pay taxes…money is destroyed >?
Did you know the Government’s deficit is YOUR Asset ?
No deficit no asset ?
Dod you know the banks creat money every time you borrow some …and they create vastly more than the government
MMT just switches this equation around and the Govt ( the Peoples bank) creates more than the banks ….and the more they create the more flows to the economy …and is used to increase production of goods and services.
I learned a lot from these Videos
MMT is NOT the status quo.. Central banks and therefore Big banks controlling the money supply…it is YOU and YOUR Government controlling it.
It is The final UNDOING of the FED monopoly.
Trump now has his end the FED moment..well done !
Skip the analysis, its just gobbly gook. It’s just as easy to recognize a fraud when confronted by it.then move on.
$100 WWII savings bond purchased in 1941 at 3% compounded yearly in 2020 = $1033.10.. .https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php
$100 1941 purchasing power in 2020 dollars = $1754.90 (and that includes hedonic adjustments)
https://cpiinflationcalculator.com
In 1941 a US double eagle coin was worth $33.8625 at gold official $35/ounce. (Of course it was illegal to own more than a few of these coins thank you FDR) Now accounting to the CPI calculator that $33.8625 purchasing power today is $524.95. Now class what was a better store of value Currency or double eagles?
Yes all that is true we have had inflation for 100 years but now there is NONE ..at the moment…with no expectations for any.
In spite of trillions printed….because the capacity of the economy to produce goods and services is growing faster than the money supply
That’s what I got from these tutorials
Do the math with the S&P please…just for fun
Hey Guys like it or NOT Le Grande Orange just endorsed the Congress passing a bill to create 2.2 Trillion dollars ….The Treasury created this not the FED.
This is MMT and a lot more to come.
So there you go AOC and Trump are both endorsing MMT.
Nice to see the left and Right come together finally.
PS I guess you all think Social Distance is still a mistake
I did …but after a week or so i re assessed and changed my mind….It is a MUST.
Exactly, Fully. The capitalists are expanding their scope of corporate socialism to such an extent that MMT is now becoming mainstream, paving the way for the policies of AOC. Oh, the irony of it all!
And yes, Questioning and Changing beliefs is an excellent exercise and something I am quite familiar with.
To wit: Raised in a large extended family of very conservative Republicans, I did a complete about face by my twenties. And those early Eight years of Catholic school did nothing but change me quickly into an atheist by high school.
So ‘stirring the pot’ comes naturally. Do I pass the ‘quick test’?
A+
🙂
Interesting conversation… why all these rabbit holes. Learning is soo much fun. Problem is.. when I endorse a view point.. its usually the end of it.. so beware my positioning on this!
MMT is the doorway to Federal crypto currency. Why? because controlling the money supply through taxation, via MMT will not be possible with a cash currency.
Okay, Fully, now that I hope you are done throwing around your smiley insults, I listened to/watched the entire video. So what. The arguments are illogical and turn thought processes upside down. They suspend reality in gobbledy-gook.
Boy, that was a quick switch from “just trying to understand” to full-bore proponent.
The clownish aspect of this whole rabbit hole is that somehow we would now TRUST the GOVERNMENT to do right? Oh, the insanity…never fails to amuse.
I also learned a long time ago that there is no such thing as an “economist” to understand anything about how the real world works. However, I did expect more of the site moderator. You’ll find out soon enough how MMT “works”, Fully, as we inevitably try yet another scheme to get something for nothing. And I’ll bet you did not take the 15 -20 minutes to read either of the reasoned commentary to which I provided links.
AOC and her gang are about to deliver a lesson of epic proportions that will absolutely gut the futures of our kids and especially our grandkids.
As for inflation being “dead” or nonexistent, have you compared the prices of new vehicles compared to 10 years ago? Five years ago? How about food – ever track those prices? Cost of internet service? (ours are now $66 a month vs $45 two years ago.) Our winter RV spot rental has gone from $1850 to $2700 in two years. My health insurance costs? Up a mere 80%. It seems to me you are quite willing to trust government created stats, and government created MMT, which in and of itself is quite stunning. But hey, that’s just me, living on a fixed income while my costs keep leaping forward. My cost of living has gone up double digits in the last two years, but I ignore it because…inflation is dead. Oh, that and the government tells me my cost of living has only gone up 1.5% hahahahahaaaaaa