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Old 02-07-2019, 05:29 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,435
Back door MMT,,,inflation,,, Italian fireworks

Crony capitalism has screwed everybody except the top 10% of "earners". They were close enough to the money spigot that price inflation did not hurt them. Their incomes were inflating faster. Wage stagnation wouldn't have hurt the actual producers near so much if there wasn't so much price inflation. The money-renters made out fine and, they like it that way. As we go down the drain because of crony capitalism, socialism looks to be our only relief. The champagne socialists are taking a hard look at modern monetary theory
Armstrong on MMT. "This economic theory is the same old incantation — how to prosper with other people’s money. Rome had no national debt and no central bank. It created money to fund itself. In hard times, they used the law to confiscate the property of people as they are doing today with their civil asset forfeitures.

What is missing in this theory is the question of debt. They assume they can borrow without end and never have to account for what they have done. They fail to understand that concept and try to regulate pension funds, which requires them to obtain government debt that they never pay off.

Yes, you can just create money to fund the government and it is confined by inflation. That is a true statement if taken by itself. However, you cannot then borrow with no intention of paying down the debt because the accumulative interest payments will end up representing 100% of the debt. This theory fails for it ignores dealing with the debt."

OK, now for the lies and sins of omission. Rome was on a precious metals standard. They did NOT have a flexible currency for hard times.
"They assume they can borrow without end" MMT is NOT about borrowing. It is about the Treasury creating money out of thin air. This has been done by the banks alone and, they like it that way. We have had a minimum of 4% price inflation every year. The treasury can just print the money and will have a BETTER control over price inflation.

Demand-Pull Inflation
1.Aggregate Demand in the economy rises
2.The rising Demand causes shortages to occur in some markets
3.Shortages lead to price rises in those markets
4. People/businesses respond to those price increases by raising prices throughout the economy
Cost-Push Inflation
1.Key resource cases rise (oil,food,labor)
2.Aggregate supply in the economy shrinks
3.Decreasing supply causes shortages to offer in some markets.
4.Shortages lead to price rises in those markets
5.People/Businesses respond to those price increases by raising the prices throughout the economy

"They" claim that there are 9 types of inflation. BS... The banks take our savings AND free money from the State. They buy up everything on speculation and then, resell it to us. If the Treasury originated the money supply and did NOT channel it through the banks first, this would cut out most of the speculation.
"rise (oil,food,labor)" Pretty funny that they group oil along with labor. The West has reached peak-cheap-oil. Automation has assured that labor shortages have little effect on productivity.
https://www.nytimes.com/2019/02/04/b...ity-wages.html

The demand for labor is shrinking in many fields.
The forward supply of labor is shrinking (birthrate) in most of the West.
https://econimica.blogspot.com/2019/...ated-peak.html
FED inflation has jacked up prices in America so high that we are not globally competitive in many areas. At the same time, 50% (average) of the cost of everything that you buy is for upstream financing.
Starting with the war years, FED GOV forced the FED to buy State debt. Presently, many types of funds are mandated to hold U.S. debt. SS holds $3trillion. The FED holds just over $4 trillion.
Several years ago, Treasury claimed that the BLICs bought up the debt,,, even though they didn't have any dollars to buy with. Then, we were told that "households" were buying up a couple $ trillion. Now, were told that it is "other'. Previous to this, we sent boatloads of pixels to London, Brussels and Zurich to buy U.S. debt. They bought equities also.
We've had back-door MMT for years.

2/06 Italy’s debt crisis will “rock EU to its foundations” – Goldcore ROCK ON!
Italy needs MMT, https://www.zerohedge.com/news/2019-...d-take-down-eu

2/06 The threat of a US government debt trap – Mises Institute What threat? They have a printing press.
2/05 Big tech is no longer carrying the stock market – NY Times
2/05 Loan demand falls among U.S. businesses, households – Reuters
2/05 World’s biggest pension fund suffers record collapse in Q4 – Zero Hedge
2/05 Motor vehicles sales dive in January, light trucks down 7.8% – Mish


2/06 German factory orders slide in December, undercut forecasts – AP
2/06 Age UK: 50,000 elderly have died waiting for social care package – Guardian
2/06 After abysmal Jan sales, car dealers are overflowing with unsold cars – ZH
2/05 US services stumble to 13-month lows as new orders plunge – Zero Hedge

The liquidity injected into the upper loop didn't help the lower loop very much. Consumption and profits go down.
It appears that you Canadians smoke 77,000 kilos of pot every month. https://www.thestar.com/news/cannabi...arket-yet.html
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