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Modern Monetary Theory (MMT) (Read 62582 times)
thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #165 - May 14th, 2022 at 12:34pm
 
Speaking of debt, an article from Michael Hudson, professor of economics:

https://www.jacobinmag.com/2021/12/michael-hudson-interview-debt-forgiveness-can...

"That was what the first sermon of Jesus was all about. When he went to the synagogue and unrolled the scroll of Isaiah the prophet and said, “I’ve come to proclaim the year of the Lord,” which was the debt cancellation — the Jubilee year — that was brought in from Babylonia into Judaism, as it was done all through the Near East. People who translated the Bible didn’t really know what these words meant. What does it mean, “year of the Lord?” What does it mean, “deror?,” which was debt cancellation".

IMF - Instant Misery Fund - take note. Your national privatization and public austerity policies, to reduce public debt,  are merely supporting global rule by greedy private capital/financiers. 

"Jubilee Year" also addressed by Ellen Brown:

https://ellenbrown.com/2022/05/05/a-monetary-reset-where-the-rich-dont-own-every...

A Monetary Reset where The Rich Don't Own Everything.

"We have a serious debt problem, but solutions such as the World Economic Forum’s “Great Reset” are not the future we want. It’s time to think outside the box for some new solutions. In ancient Mesopotamia, it was called a Jubilee. When debts at interest grew too high to be repaid, the slate was wiped […]




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« Last Edit: May 14th, 2022 at 10:03pm by thegreatdivide »  
 
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0ktema
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Re: Modern Monetary Theory (MMT)
Reply #166 - May 14th, 2022 at 2:34pm
 
Your link doesn't work for me. "Jubilee Year" also addressed by Ellen Brown:

Here's another source ...

How to ‘reset’ the economy without the rich owning everything

https://radixuk.org/opinion/how-to-have-a-reset-without-the-rich-owning-everythi...
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"We Are Consciousness Itself"
- Adi Da Samraj
 
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #167 - May 14th, 2022 at 10:07pm
 
0ktema wrote on May 14th, 2022 at 2:34pm:
Your link doesn't work for me. "Jubilee Year" also addressed by Ellen Brown:

Here's another source ...

How to ‘reset’ the economy without the rich owning everything

https://radixuk.org/opinion/how-to-have-a-reset-without-the-rich-owning-everythi...


Thank you. Here is the correct link to the original Ellen Brown article:

https://ellenbrown.com/2022/05/05/a-monetary-reset-where-the-rich-dont-own-every...

A Monetary Reset Where the Rich Don’t Own Everything Posted on May 5, 2022 by Ellen Brown

"We have a serious debt problem, but solutions such as the World Economic Forum’s “Great Reset” are not the future we want. It’s time to think outside the box for some new solutions".
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #168 - May 15th, 2022 at 12:17am
 
For Bobby: an explanation of the phrase "spending money into existence".

If a government has command of a national treasury and reserve bank, it can buy whatever is available for sale (in the nation's currency), by simply creating the money out of thin air; hence the phrase "spending money into existence". 

Note: the spending limit - to avoid inflation -  is determined by the quantity of goods and services  available for purchase by the government.   

[The phrase "printing money" is misleading, because it implies the government is increasing the purchasing power of citizens, without regard to the capacity of the economy to absorb the extra spending, whereas "spending money into existence" requires already existing resources to be available, on which the money can be spent by the government, not by the citizens]. 
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« Last Edit: May 15th, 2022 at 11:02am by thegreatdivide »  
 
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #169 - May 19th, 2022 at 1:27pm
 
The beginning of the new age of public-sector financing:

https://www.ecovoice.com.au/torrens-university-australia-introduces-global-onlin...

"Torrens University Australia introduces global online courses in the economics of sustainability, in partnership with Modern Money Lab".

In September 2022, Torrens University Australia will commence offering the suite of online postgraduate courses in economics and sustainability, based on Modern Monetary Theory (MMT) and ecological economics, designed by Modern Money Lab in partnership with the University".
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #170 - May 28th, 2022 at 4:12pm
 
Ross Gittins, who understands MMT, tells how a 'fossilized' central banker identified 'shortcomings' in MMT:

(According to this "fossilized banker":

"When you trace through all the double-entry bookkeeping, you see that the created money the Reserve paid into the banks’ exchange-settlement accounts in return for the bonds the govt.  bought is still sitting there."

But of course a currency-issuing government which has its own reserve bank and treasury should NOT buy bonds in the first place; spending by such a government is limited by the nation's productivity, not its money supply.

Someone replied by saying markets determine money supply, which is merely an ideological assertion based on classical 'invisible hand' market ideology. 

The point is the public sector ought also be able to create money, via planned allocation of resources, alongside private sector 'invisible hand' allocation of resources.
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #171 - May 28th, 2022 at 10:24pm
 
https://www.greeneconomycoalition.org/news-and-resources/obituary-hazel-henderso...

Henderson's early prolific writing predicted the overhauling of conventional economic theory to take account of pollution, resource depletion and social costs ignored by company balance sheets and GDP, as described in her ground-breaking The Politics of the Solar Age (1981). As a result, Henderson was ostracized by the economics community as she famously reiterated "economics is a form of brain damage".

Well said Hazel.  Actually mainstream classical-based neoliberal economics is merely a reflection of 'the law of the jungle',  and survival of the fittest predation.

Its time for the public sector to be authorized to create money by spending it into existence,   rather than being forced to tax and/or borrow from the private sector. 

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Frank
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Re: Modern Monetary Theory (MMT)
Reply #172 - May 28th, 2022 at 11:42pm
 
thegreatdivide wrote on May 28th, 2022 at 4:12pm:
Ross Gittins, who understands





Grin Grin Grin Grin Grin Grin Grin Grin



He's laffin' at you, as do all of us.


...

Gittins has been wrong about everything. He is an older version of Peter van Olselen - always wrong.

Amusing.

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« Last Edit: May 28th, 2022 at 11:49pm by Frank »  

Estragon: I can’t go on like this.
Vladimir: That’s what you think.
 
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #173 - May 29th, 2022 at 3:11pm
 
Frank wrote on May 28th, 2022 at 11:42pm:
Ross Gittins, who understands (MMT)


Yes he does (though still susceptible to 'fossilized central bankers, as noted in the post a couple back).   

http://www.rossgittins.com/2021/03/funding-budget-by-printing-money-is.html

"Many people are alarmed by “modern monetary theory”, the seemingly radical idea that the government should cover its budget deficit simply by creating money. But in his new book, Reset, Professor Ross Garnaut, one of our most respected economists, has joined the young turks".

Quote:


Be careful about asserting who is "laughing at you": as Hazel Henderson - a brilliant early researcher of ecological  economics -  said: "(mainstream) economics is a form of brain damage". (see #171).

(IMO, neoliberalism is merely a reflection of the law of the jungle dressed up as a 'science').

Quote:
Gittins has been wrong about everything. He is an older version of Peter van Olselen - always wrong.
Amusing.


Ah...dissension among writers in your favourite rag  'The Australian'?:

(tweet)

"Replying to
@vanOnselenP
and
@australian
I like the look of that headline but I'm still not spending a penny.
Let's face it, Economics is not a science but the economic values of the Coalition are 40yrs old and decidedly dated. As long as Labor remember that deficit is not debt they'll do better than LNP.
1:20 PM · May 24, 2022




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« Last Edit: May 29th, 2022 at 3:18pm by thegreatdivide »  
 
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #174 - Jun 1st, 2022 at 11:57pm
 
So the problem facing Jim Chalmers (and Oz electricty consumers)  is the global sky-rocketing price of gas, caused by banning/withdrawal  of Russian gas, in the EU.

But NOT caused by any lack of Oz's own gas supply, in Oz.

[Apparently a gas reservation policy is not acceptable, because existing overseas gas export contracts must be fulfilled. (WA is different because that state has always had a 15% gas reservation policy, hence NW-shelf gas prices in WA are stable)].
 

Obvious solution: Aust. government subsidizes  Oz gas in Oz, by crediting the accounts of Santos** etc to make up the difference between a politically acceptable  local Oz price and the sky-rocketing overseas price.

**by changing the digits in the bank accounts of those companies. Electronic money received by the Oz companies could be used to improve the debt positions of those companies, not for a spending spree in Oz.   

Note: the money supply in Australia would not increase,  hence no chance of causing inflation;  and Oz gas supply - and price -  for local consumption would remain stable.

Comments? 
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #175 - Jun 3rd, 2022 at 12:30pm
 
More on government  debt and deficits


The new Australian treasurer’s comprehension of his brief is dire

http://bilbo.economicoutlook.net/blog/?p=49896&utm_source=feedburner&utm_medium=...

"If ..... we are operating within the real resource space that is available to government (which means we are at full employment with the correct distribution of resource usage between public and private to achieve the aspirations of society) then the (deficit or surplus) number that is accounted for at the end of each financial year as the fiscal deficit or surplus is just a passing curiosity.

Those financial numbers should never be the target of policy makers.

The aspirations are the targets and the numbers will be whatever it takes to achieve the targets for societal well-being.

Fiscal conservatives don’t understand that, which is why the Labor Right are unqualified to be in charge of fiscal policy.

Cue to the first few press conferences that the new Treasurer has given in the last few days.

The new Treasurer (Jim Chalmers - labor Right faction) published an Op Ed today (June 2, 2022) in the Murdoch press – with the headline “There’s no use mincing words: our challenges are dire”.


Already finding excuses to wind back expectations in the next three years.


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FutureTheLeftWant
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Re: Modern Monetary Theory (MMT)
Reply #176 - Jun 3rd, 2022 at 12:34pm
 
thegreatdivide wrote on Jun 3rd, 2022 at 12:30pm:
More on government  debt and deficits


The new Australian treasurer’s comprehension of his brief is dire

http://bilbo.economicoutlook.net/blog/?p=49896&utm_source=feedburner&utm_medium=...

"If ..... we are operating within the real resource space that is available to government (which means we are at full employment with the correct distribution of resource usage between public and private to achieve the aspirations of society) then the (deficit or surplus) number that is accounted for at the end of each financial year as the fiscal deficit or surplus is just a passing curiosity.

Those financial numbers should never be the target of policy makers.

The aspirations are the targets and the numbers will be whatever it takes to achieve the targets for societal well-being.

Fiscal conservatives don’t understand that, which is why the Labor Right are unqualified to be in charge of fiscal policy.

Cue to the first few press conferences that the new Treasurer has given in the last few days.

The new Treasurer (Jim Chalmers - labor Right faction) published an Op Ed today (June 2, 2022) in the Murdoch press – with the headline “There’s no use mincing words: our challenges are dire”.


Already finding excuses to wind back expectations in the next three years.




The Liberals burned this place to the ground,  They are telling us what they are finding

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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #177 - Jun 3rd, 2022 at 10:59pm
 
FutureTheLeftWant wrote on Jun 3rd, 2022 at 12:34pm:
The Liberals burned this place to the ground,  They are telling us what they are finding


Well yes, but Chalmers is also pushing the debt and deficit myth, whereas he could authorize the central bank to write-off the government's covid debt, ("money" which should never have been borrowed by selling bonds, in the first place).

Here is Akan Koher's latest take on the matter:

https://thenewdaily.com.au/finance/finance-news/2022/05/30/tax-inquiry-jim-chalm...


Alan Kohler: Jim Chalmers needs an inquiry into tax


"So we have travelled down the yellow brick road to..... ......Modern Monetary Theory, in which the government-owned Reserve Bank buys government debt, and the debt and deficits don’t matter, or rather only matter to the extent that they cause inflation … in theory, anyway. In practice, they either don’t cause inflation or it’s impossible to know."

Ok, Kohler (like Ross Gittins; see#170)  is struggling with MMT, but he's on the right track....

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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #178 - Jun 4th, 2022 at 11:55pm
 
https://www.youtube.com/watch?v=bHLRpLeeO7U&t=9457s

Prof Fadhel Kaboub examines ongoing exploitation of the 'global South' by the rich North, and the necessity for debt cancellation, particularly in relation to transition to a green global economy. 

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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #179 - Jun 5th, 2022 at 1:08pm
 
https://theconversation.com/australias-credit-rating-is-irrelevant-ignore-it-151...

Australia’s credit rating is irrelevant. Ignore it

"Although there are many constraints on what governments such as Australia’s can do (including the risk of inflation) such governments can’t become insolvent in their own currencies, because they are always able to supply them.

Strictly speaking, they don’t need to borrow at all. They choose to do so. Where they do borrow, their lenders face a zero risk of default."
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« Last Edit: Jun 5th, 2022 at 1:13pm by thegreatdivide »  
 
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