MMT - Modern Monetary Theory

[cawacko]

So this is a new economic theory with Keynesian finger prints on it. At it's basis it says deficits don't matter because the U.S. controls the printing press. It acknowledges inflation but don't believe it a huge concern.

I'm curious who here is familiar with it and if anyone subscribes to it?


Here's an article on it from The Nation:

The Rock-Star Appeal of Modern Monetary Theory

The Sanders generation and a new economic idea.

https://www.thenation.com/article/th...netary-theory/



And here's the podcast I found out about it. This lady is an economist and worked on the Sanders campaign.

https://itunes.apple.com/us/podcast/...=1000405618520

[MAGA MAN]

More proof that economics is 10% science and 90% politics.

[cawacko]

More proof that economics is 10% science and 90% politics.

So this woman in the podcast has her fancy PhD in economics title. She then says she's an academic and when she had a chance to join the Bernie campaign and work on policy it was in thralling. Pretty clear right thing you knew she was one of these ivory tower types. Which is a background One must have to believe controlling the printing press is all a country needs and debt doesn't matter.

[Flash]

So this woman in the podcast has her fancy PhD in economics title. She then says she's an academic and when she had a chance to join the Bernie campaign and work on policy it was in thralling. Pretty clear right thing you knew she was one of these ivory tower types. Which is a background One must have to believe controlling the printing press is all a country needs and debt doesn't matter.

I have a couple of questions about the concept.

1. Although we have a printing press, there has to be a market for those treasuries. That has not been a problem so far but it might always be true.

2. An increasing debt increases the amount of interest payments. It is now about $475 billion a year but that will continue to grow taking up a bigger percent of the total budget (and even worse if interest rates increase). Soon interest payments, Social Security, and Medicare will crowd out other government spending.

[FUCK THE POLICE]

Isn't that chartalism? The economic theory that lead to the waimar hyperinflation?

[FUCK THE POLICE]

So this woman in the podcast has her fancy PhD in economics title. She then says she's an academic and when she had a chance to join the Bernie campaign and work on policy it was in thralling. Pretty clear right thing you knew she was one of these ivory tower types. Which is a background One must have to believe controlling the printing press is all a country needs and debt doesn't matter.

Duuurrr Ivory towers. All you need is to make deals to understand da economy?! Deal maker! Bidnessman# no skewl 4 mee!

[cawacko]

I have a couple of questions about the concept.

1. Although we have a printing press, there has to be a market for those treasuries. That has not been a problem so far but it might always be true.

2. An increasing debt increases the amount of interest payments. It is now about $475 billion a year but that will continue to grow taking up a bigger percent of the total budget (and even worse if interest rates increase). Soon interest payments, Social Security, and Medicare will crowd out other government spending.

Well said. In the podcast she never discussed that someone has to want to purchase our treasuries. She also said we could have deficits up to $2 trillion today and be fine. That's sort of the fallacy of it. Instinctively you know we can't print money forever and have no negative repercussions.

[FUCK THE POLICE]

Deficit is going to balloon to a trillion this year because of the Republican giveaway.

[Minister of Truth]

Isn't that chartalism? The economic theory that lead to the waimar hyperinflation?

It's certainly true that the US can get away with a lot more monetary shenanigans than anyone else because we are the hub of the global economy. That doesn't mean it's a good idea to engage in reckless monetary policy.

But, as to Weimar, the thing that really killed the economy was that it was deliberately defaulting on its reparations payments, which trashed its economy overnight. The German economy remained healthy into 1921, but then suddenly crashed, and the defaulting payments were the primary culprit.

[FUCK THE POLICE]

They also bought into chartalist monetary theory. Which is very similar to this is you look it up. Default should not necessarily create massive inflation.

[Truth Detector]

So this is a new economic theory with Keynesian finger prints on it. At it's basis it says deficits don't matter because the U.S. controls the printing press. It acknowledges inflation but don't believe it a huge concern.

I'm curious who here is familiar with it and if anyone subscribes to it?

Here's an article on it from The Nation:

The Rock-Star Appeal of Modern Monetary Theory

The Sanders generation and a new economic idea.

https://www.thenation.com/article/th...netary-theory/

And here's the podcast I found out about it. This lady is an economist and worked on the Sanders campaign.

https://itunes.apple.com/us/podcast/...=1000405618520

I think it is an idiots theory that ignores historic facts.

Name a nation who did not print itself into bankruptcy by making their currency worthless. Venezuela is the latest in this Marxist based moronic theory.

It is delusional to believe that a currency will find support if the people in power just claim the currency is worth more than the economy it backs up.

[Irish Exit]

So this is a new economic theory with Keynesian finger prints on it. At it's basis it says deficits don't matter because the U.S. controls the printing press. It acknowledges inflation but don't believe it a huge concern.

I'm curious who here is familiar with it and if anyone subscribes to it?


Here's an article on it from The Nation:

The Rock-Star Appeal of Modern Monetary Theory

The Sanders generation and a new economic idea.

https://www.thenation.com/article/th...netary-theory/



And here's the podcast I found out about it. This lady is an economist and worked on the Sanders campaign.

https://itunes.apple.com/us/podcast/...=1000405618520

I am familiar with it. I do not subscribe to it.