Australian Politics Forum - Modern Monetary Theory (MMT)

thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #510 - May 20^th, 2023 at 10:46am

https://www.msn.com/en-au/news/australia/economist-tells-leaders-to-rethink-gree...

Economist tells leaders to rethink green evolution
Story by Tracey Ferrier • Yesterday 2:24 pm

Prof Garnaut said there were powerful lessons to be learned from looking back in history, to the two periods when Australia got the settings right for true economic evolution.

"One was post-war reconstruction, where we thought differently about everything."

The result was a quarter of a century of strong employment growth, a growing population, rising incomes, low inflation and low unemployment.

ie back in the days when deficit spending was normal practice. Today 'balanced budgets' are de rigeur, when in fact:

1. Currency-issuing governments shouldn't issue debt at all, and

2. Inflation should be managed with price controls and rationing when necessary, in a scenario of legislated full employment and near zero interest-rate monetary policy.

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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #511 - May 21^st, 2023 at 11:45am

https://www.levernews.com/bidens-austerity-rhetoric-returns-from-the-memory-hole...

Biden’s Austerity Rhetoric Returns From The Memory Hole

my comment: he's still hung up on mainstream 'deficit' nonsense and the false need for govt. 'austerity', though he is at least attempting to get manufacturing in the US going again (with CHIPS and IRA acts).

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thegreatdivide Gold Member Offline Australian Politics<br /> Posts: 13853 Gender:	Re: Modern Monetary Theory (MMT) Reply #512 - May 21^st, 2023 at 11:53am https://www.youtube.com/watch?v=SS8h35SPxNc What to expect from a course in Economics of Sustainability
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Jasin

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Re: Modern Monetary Theory (MMT)
Reply #513 - May 21^st, 2023 at 11:58am

thegreatdivide wrote on Feb 27^th, 2022 at 4:56pm:

A timely discussion of how the economy works in China, the reasons for the West's demonization of China, and the status of MMT in China.

https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5jYXB0aXZhdGUuZm0vbWFjcm9uY2h...

Examining China with an MMT Lens with Yan Liang

"Macro and Cheese explores the progressive movement through the lens of Modern Monetary Theory, with hot and irreverent political takes, spotlights in activism, and the razor sharp musings of Real Progressives Founder and host Steve Grumbine".

"This week’s episode is another chapter in our mission to educate ourselves about modern China. Yan Liang specializes in Modern Money Theory, international trade and finance, and economic development, with a special regional focus on China. She is also the wife of friend-of-the-podcast Eric Tymoigne".

"Steve and Yan discuss the truth and misconceptions about the ongoing competition between the US and China. It has created winners and losers, with the working class in both countries affected by globalization. Trade war is class war."

(Spurts of aggressive punk music cease after c.1 mim.)

China's Economic philosophy is very good. Probably run by a Black man to keep their economy in the black and on top of the Black Market as a bonus level.
The Accountants in China will soon be making their military a tax write off as they kick them out of the country to go invade other countries to expel their worth for the country.

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AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.

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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #514 - May 22^nd, 2023 at 10:38am

The recognition for radical change in the current mainstream neoclassical orthodoxy is growing:

https://theconversation.com/saving-humanity-heres-a-radical-approach-to-building...

A more appropriate economic framework for human and planetary wellbeing is the interdisciplinary field of ecological economics.

Unlike neoclassical economics, ecological economics gives priority to ecological sustainability and social justice over economic efficiency. It works towards a transition to a steady-state economy. That is, one with no global increase in the use of energy, materials and land, and no increase in population.

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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #515 - May 22^nd, 2023 at 10:51am

Jasin wrote on May 21^st, 2023 at 11:58am:

China's Economic philosophy is very good.

Common prosperity? It certainly ought to be achievable, in ANY nation.

Quote:

Probably run by a Black man to keep their economy in the black and on top of the Black Market as a bonus level.

A tongue-in-cheek play on "black".... otherwise a statement of zero value in a discussion of the monetary system.

Quote:

The Accountants in China will soon be making their military a tax write off

Currency-issuing governments don't need to tax in order to spend, they need to balance supply of and demand for available resources.

Quote:

as they kick them out of the country to go invade other countries to expel their worth for the country.

Military isn't "kicked out to invade", regardless of whose wealth is involved.

I suppose you consider reasserting/maintaining Chinese sovereignty over Taiwan, HK, Tibet and Xinjiang to be "invading".....and note: Taiwan has many of the same claims in the SCS as China, because...Taiwan is Chinese....

Catalonia wants to secede from Spain, Scotland from Great Britain (after Britain exited the EU), is there no end to this delusional splinter-ing in the name of (individual) sovereignty?

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« Last Edit: May 22^nd, 2023 at 11:04am by thegreatdivide »

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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #516 - May 22^nd, 2023 at 10:44pm

Brilliant forward-looking thought from sociologist Heinz Dieterich:

https://transversal.at/transversal/0805/dieterich/en

The basic premise of my book is that you need to have certain objective conditions to have democracy; you cannot have democracy, just as a wish, and impose it on any objective world scenery or acting. First of all, there has to be a certain level of material well being, you need a certain quality of life. That implies that you can have a very extensive educational system, which is open and free for all, and then of course you must have the willingness in the people to have a democratic society instead of, let’s say, a theocratic society. At the end, you need an economy that sets you free from unnecessary work so that you have time to participate in public affairs. I think these conditions have been reached today so that the authoritarian development of social democracy and historic socialism in eastern Europe was a phenomena much to do with the circumstances of the World Wars, the Second World War and then of the Cold War and that there’s no need to have that once again. You cannot substitute democratic participation by the rule of surrogate force, the Communist Party in that case, neither, of course, of a capitalist elite, and, neither, of course, of a state bureaucracy. So, I think we’ve all learned from these things. The objective conditions are much more prone to a real participatory democracy. I think there’s never been a better chance to have a real direct democracy than we do have today.

A "real direct democracy" with common prosperity?

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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #517 - May 25^th, 2023 at 11:08am

https://findingmoneyfilm.com/

FINDING THE MONEY

An underdog group of economists is on a mission to instigate a paradigm shift in economics, by flipping our understanding of the national debt — and the nature of money — upside down.

Not before time; the fools in the US Congress are playing
their silly 'debt ceiling' brinkmanship games again.....

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thegreatdivide Gold Member Offline Australian Politics<br /> Posts: 13853 Gender:	Re: Modern Monetary Theory (MMT) Reply #518 - May 26^th, 2023 at 11:06am Now for some comic relief (priceless...): https://twitter.com/i/status/1661548182789328896 ...as one tweeter observed: "And this is how most of the 'experts' and politicians say with total conviction that the federal government, wherefrom money comes, needs to tax and borrow to spend."
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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #519 - May 28^th, 2023 at 5:34pm

The madness of political ideology, to avoid facing the madness of the current entrenched global monetary ideology:

tweet

Ashish Barua आशिष बरूआ #MMT 📈📊📒💼
@barua_ashish

"In India, 222 million children are facing the double whammy of climate disaster and poverty, are they Hindu or not?

In PM Modi's “New India”, how poor you are or how long you have been unemployed does not matter at all, the only thing that matters is how much Hindu you are!"

twitter.com/MrSinha_/statu…

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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #520 - May 31^st, 2023 at 6:48pm

More on the egregious outcomes of the current neoclassical orthodoxy in India:

tweet

Ashish Barua आशिष बरूआ #MMT 📈📊📒💼
@barua_ashish
The problem is that India has so many people who have been educated and have spent a lot on their own or their family's money, but they couldn't find a job, or even if they are employed they are not able to earn enough to lead a decent life.

...the failure of neoliberal markets to employ even all educated people.

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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #521 - Jun 2^nd, 2023 at 9:52pm

Isabella M. Weber

tweet:

Shareholders vote at Shell's AGM
May 2023.

What happens when fossil fuel profits explode? Renewables become less attractive for investors.

“Shell’s current management insisted at the AGM that fossil fuels are again the core focus of its business and investments since renewables are not profitable enough.”

Someone at Davos said (a couple of years back):
"central banks might have to buy (and close down) the fossil fuel industry" (central banks/national treasuries having unlimited currency-issuing capacity).

Obviously the profit-seeking private sector companies would rather maximize their profits than save the planet....

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« Last Edit: Jun 2^nd, 2023 at 9:58pm by thegreatdivide »

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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #522 - Jun 2^nd, 2023 at 10:13pm

Ashish Barua MMT

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"What surprises me is that there are people who unnecessarily try to differentiate b/w the $ issued by the US govt and the private banks, these people often forget that the license to issue $ to the banks has been granted by the US govt, and banks cannot grant loans in any other denomination!

The only difference is that the government COULD issue 'debt free' money to purchase the goods and services it needs, so long as these resources are available for purchase in the nation's own currency.

Private banks of course issue debt (interest bearing) money.

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Sir Grappler Truth Teller

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Re: Modern Monetary Theory (MMT)
Reply #523 - Jun 2^nd, 2023 at 10:38pm

You can't eat theory - tell you what - you go out and alter our governments and business ways of doing things to suit this theory, and we're all ears.

Same as the voice and the 'gaps' - you fix all those and get all the Cheers on the right track to prosperity without having businesses and cash handed to them to waste first, unlike anyone else gets, and then we'll see how the gap closing goes.

I seriously cannot wait for McGowan's massive deal to the Geraldton lot to show its fruit.... bet it closes no gaps and creates a whole new range of problems that will require more and more funding and so forth unto eternity. Every year small groups get millions in royalties and handouts for everything and not a gap closes other than the gap between the grog shop owner's expenditures and his incomes.... and sometimes between the living standards and housing of the top dogs in the Cheers corporations entrusted with handing that money on behalf of their people and the way they expect to live at the top on it by drawing salaries and expenses like some Arab sheik.

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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
― John Adams

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thegreatdivide

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Re: Modern Monetary Theory (MMT)
Reply #524 - Jun 3^rd, 2023 at 12:27pm

Sir Grappler Truth Teller wrote on Jun 2^nd, 2023 at 10:38pm:

You can't eat theory - tell you what - you go out and alter our governments and business ways of doing things to suit this theory, and we're all ears.

I'm (along with many others) working on it; but as to 'theory', it's fact - even more so than the 'Theory of Evolution'.

From the link in #507:

Prof. Keen:

Fiat creates money for the non-bank private sector; interest on bonds creates money for the (private) banking sector; and the turnover of money creates GDP. Far from the servicing of government debt being a burden on future generations, as Neoclassical economists claim, the payment of interest on government bonds finances the banking sector while the excess of government spending over taxation creates money and positive equity for the non-bank private sector.

Prof Keen proves his conclusion using double-entry accounting.

Quote:

Same as the voice and the 'gaps' - you fix all those and get all the Cheers on the right track to prosperity without having businesses and cash handed to them to waste first, unlike anyone else gets, and then we'll see how the gap closing goes.

Correct; but - as some researchers reported yesterday, unless we do things differently, the gap will take more than a century to close (!).....

Quote:

I seriously cannot wait for McGowan's massive deal to the Geraldton lot to show its fruit...

In the case of blacks, historical/sociological problems have to be dealt with, as well as economic ones.

But government currently cannot properly resource BOTH the sociological and economic management required to close the gap (including case management down to the individual level)
....because taxpayers object to their 'taxpayer money' being used in such a fashion.

Hence the need for 'government money' - the topic of this thread - to deal with the problem.

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« Last Edit: Jun 3^rd, 2023 at 12:35pm by thegreatdivide »

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