Keith Woods Modern Monetary Theory (Or: Why The Deficit Doesn't Matter)

[Star Rider]

Right lads, 200bil is rookie numbers, we need to start thinking in the trillions.

 

[Deleted member 685]

The US deficit doesn't matter - simply because the US Régime has the ability to murder anyone who even thinks of not accepting their worthless paper - or accepting anything else instead of it. Welcome to Mafia logic.

 

[bells of shandon]

Every aspiring politician should acquaint themselves with Modern Monetary Theory/(MMT). It offers a vision of how an Economy can be stimulated successfully and full employment attained using its precepts.
The basics .are ,that a Nation with its own Independent Sovereign currency ,can purchase any resource Within its borders,including all idle labour.
No recourse to selling Bonds, IMF loans or Foreign Direct Investment is required.
Ireland surrendered this privilege from the beginning in 1922 ,when it pegged its Currency to the British Sterling and later surrendered completly when adopting the EURO in 2000. The result was a stagnant undeveloped economy, with high unemployment and emigration for decades.
FIAT money has no attachment to solid assets since the end of the Gold Standard in 1971. The US$ has been used as the Reserve currency for International trade ever since and is tied to the Price of a barrel of Oil.
Independent Nation/States require to hold US$ to trade internationally.This is a Mafia style extortion racket.
This has been enforced by US Military and Naval dominance ,which is in decline. This has been a major factor in the regime change wars in Iraq, Syria,Libya and the reason for the war drums beating against Russia ,China and Iran.
Japan is an example of a form of MMT in action ,they have been running large deficits for near 2 decades without major problem ,using fiscal injection to stimulate the Economy.
Prof Bill Mitchell is an expert on MMT and in Feb of this year lectured in Dublin and elsewhere in Europe on MMT.his book , 'Reclaiming the State' is a must read for serious Economists who have been misled by the orthodoxy of entrenched false economics.

Fake surveys and Groupthink in the economics profession

In recent weeks, it has become apparent that Modern Monetary Theory (MMT) has evolved into a new ‘status’. Our work is everywhere now and has penetrated the political process (particula…

bilbo.economicoutlook.net

 

[Deleted member 2643]

I am reading a good deal of Michael Hudson lately. He breaks down the neoliberal financial order well enough for new initiates to grasp the immorality of the current debt slave system we operate under. This is not not your Grandfather's capitalism anymore. Debt is the life blood of the modern business cycle and war is used to perpetuate it.

 

[Deleted member 2643]

Japan is an example of a form of MMT in action ,they have been running large deficits for near 2 decades without major problem ,using fiscal injection to stimulate the Economy.

Apart from massive asset price inflation of course. Not to mention the hollowing out of rural communities and stagnant wages. But, Japan's ferocious nationalism and homogeneous nature may ensure her survival once the financial reset hits. They are making the best of a bad system

 

[Deleted member 685]

I am reading a good deal of Michael Hudson lately. He breaks down the neoliberal financial order well enough for new initiates to grasp the immorality of the current debt slave system we operate under. This is not not your Grandfather's capitalism anymore. Debt is the life blood of the modern business cycle and war is used to perpetuate it.

Micheal Hudson is really first rate.

 

[subversive writer]

Right lads, 200bil is rookie numbers, we need to start thinking in the trillions.

It depends on what you mean by matters. the average Joe thinks of money like grains of sand collect a lot of them spend less of them and you're doing well.

The average large country is more interested in getting their money to circulate into the most amount of hands as quickly as possible. The actual value of what it took to make the money is whats of value and how that value relate to today not the actual money or figure.

in many ways the whole point of money is to get people who don't know about money to spend their entire lives looking for money which they will never see and never really benefit from. You will never ever never never never get rich by working in a job and saving.

It's all about controlling the masses give them just enough so they don't revolt feed them shelter them.and provide them with cheap women so they are placid.

 

[Deleted member 2643]

in many ways the whole point of money is to get people who don't know about money to spend their entire lives looking for money which they will never see and never really benefit from. You will never ever never never never get rich by working in a job and saving.

Exactly right, they want you 'investing' in over heated, over inflated asset bubbles like housing or stocks. Investing in these 'assets' is really just another cunning device for transferring your wealth to them. The last thing they want is you leaving money in a low interest savings account or under the mattress.

 

[subversive writer]

Exactly right, they want you 'investing' in over heated, over inflated asset bubbles like housing or stocks. Investing in these 'assets' is really just another cunning device for transferring your wealth to them. The last thing they want is you leaving money in a low interest savings account or under the mattress.

There will still catch you out if you save it that way because they will simply inflate your savings out of existence. Your storing money but they determine the value of said money.

The reason they do this is to hurt their enemies. When other countries say china hold us debt in say us dollars when the us inflates the amount of dollars ie devalues their own currency they reduce the spending power of the Chinese as they have devalued the debt the Chinese were trading off of.

It's the same with oil and certain machinery it can only be bought in US dollars. The us can then determine the value of the money you hold and by consequence the amount you can buy if anything. Money ie o this case is dollars are a weapon of coercian that everyone on the planet is forced to trade on if it wants to survive

Your best bet is to set yourself up in situation for people are obliged to give you at least 25% of their monthly wages no matter how much they make. Once you have paid your startup costs and that thing is debt free no matter what the economy is ppl will be forced to give you their money.

People are always going to go to aldi and lidl and soon to be closed Tesco's even in a recession.

Whilst yes there is a thing of discretionary spending People will only ever part with their money when they have no other choice. Their instinct are to horde

 

[Deleted member 2643]

There will still catch you out if you save it that way because they will simply inflate your savings out of existence. Your storing money but they determine the value of said money.

Technically all you are storing are debt notes. That's why inflation of 'money' supply reduces purchasing power. They have simply hiked the interest repayment on your bank notes under the bed. There is no escape from the beast system. Property taxes also force you to stay in the labor game longer, to repay both the new rent on your own home and income taxes etc.

The last thing the system needs is for people to be frugal and reduce their labor participation

 

[Deleted member 685]

Technically all you are storing are debt notes. That's why inflation of 'money' supply reduces purchasing power. They have simply hiked the interest repayment on your bank notes under the bed. There is no escape from the beast system. Property taxes also force you to stay in the labor game longer, to repay both the new rent on your own home and income taxes etc.

The last thing the system needs is for people to be frugal and reduce their labor participation

If everyone paid off their debts, the whole system would crash immediately. But, the Oligarchs aren't worried about that ever happening - because there isn't enough money in the world to pay the debts - and there never will be.