View Single Post
Old 02-19-2019, 06:19 AM
Danny B Danny B is offline
Platinum Member
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,435
Claimed problems with MMT

You're going to hear a lot about MMT in the future. Bankers have long had the privilege of creating credit-money out of thin air,,, ex nihilo. Actually, it is your signature that creates the loan amount. The bankers want to keep it that way. Actually, anybody who is close to the money spigot wants to keep it that way. The money-renters claim that MMT could never work because there is no discipline regarding limitations of issuance.

MMT And Its Fictional Discipline
This theory is crucially important for investors and citizens to understand as its popularity is spreading like wildfire. The theory promises to be a strong force in the coming election and a challenge to the popular Keynesian policies that are widely adhered to by most governments and central banks.
That right there should make you suspicious.
Given the importance of this new thinking, we will analyse various bits and pieces of the theory in the coming months. In this article, we discuss a crucial aspect of the theory, inflation. MMT theory essentially believes the government spending can be funded by printing money. Currently, government spending is funded by debt and not the Fedís printing press. MMT disciples tell us that when the shackles of debt and deficits are removed, government spending can promote economic growth, full employment and public handouts galore.

The point that inflation is impossible to calculate cannot be overstated.
Pure BS but, go ahead.
The bottom line is that inflation varies widely by demographic, region and individual needs and desires and a host of other differences that cannot possibly be accounted for in one number.
He is so sloppy that he just says inflation without even differentiating whether it is price inflation or currency inflation. As to his claim, that is pure obfuscation. Harvard is tracking ALL prices.
The Billion Prices Project

Inflation Manipulation

There is a bigger and more nefarious problem with inflation measurements and how they can be manipulated. To reiterate, MMT states that government spending and money printing can occur as long as inflation is limited.

If inflation regulates government spending and by default the health of the economy, then wonít leaders, who will do anything to retain their power, suppress inflation readings to allow greater spending?

That would certainly be nothing new. We already have complete BS statistics from the State.

Price inflation as it was calculated in 1990 is running at about 6%
Alternate Inflation Charts

The FED claims that we must have 2% price inflation to maintain stable prices. Even GOV figures show twice that much.
The price of gold in 1970 was $38.90.
The price of oil in 1970 was $3.60 a Bbl.
The Nixon shock cut out the stability of gold from currency inflation. So, the money renters love to see price inflation in the upper loop. They hate the idea of losing the catbird seat when it comes to creating liquidity. One thing that they have purposely forgotten to state; Liquidity injections for speculation are very inflationary. Money injections for consumption are only minimally inflationary.
Here is U.S. debt growth,
If MMT is inflationary, it couldn't be worse than the current situation.

Meanwhile population and consumption are falling.
Reply With Quote