Jump to content

washparkhorn

Legacy Members
  • Posts

    9926
  • Joined

  • Last visited

Everything posted by washparkhorn

  1. A fire broke out backstage in a theatre. The clown came out to warn the public; they thought it was a joke and applauded. He repeated the warning, but the acclaim was even greater. I think that's just how the world will come to an end: to general applause from those wisemen who believe it's a joke. Kierkegaard, Either/Or Part 1
  2. Just a reminder—Higher rates makes goods and services more expensive. Unfortunately, higher rates also supply income (interest income) to support higher prices (i.e., “stickyfying” higher prices, especially in the services sector).
  3. While excessive money printing can lead to inflation, it is not the sole determinant. Advanced economies like the US (Japan, GB, Australia. . .) have multiple tools and mechanisms to control inflation, including monetary actions by the Federal Reserve (such as adjusting interest rates and open market operations). US demonstrates inflation can be managed even when significant amounts of money are injected into the economy, such as during the quantitative easing periods following the 2008 financial crisis. Japan's experience demonstrates that a country with its own currency can maintain high debt levels without triggering hyperinflation or economic collapse. Japan's debt-to-GDP ratio is significantly higher than that of the US, yet it has managed to avoid hyperinflation and maintain economic stability. This is largely because Japan, like the US, has control over its currency and can conduct monetary policy to mitigate inflationary pressures. While Japan has experienced periods of low growth and deflation, labeling the entire period as "miserable" is an oversimplification. Japan has maintained a high standard of living, low unemployment rates, and technological advancements. Japan's economic issues are complex and not solely attributable to its monetary policies—demographic challenges and other structural factors also play significant roles. Inflation is just one of many economic factors that need to be managed. Fiscal deficits can be sustainable if they are used to finance productive investments that boost economic growth. Moreover, in times of economic downturn, running deficits can be necessary to stimulate demand and avoid deeper recessions. The real threat to economic stability is not necessarily the size of the deficit or the act of money printing, but rather the mismanagement of economic policies overall. Like propaganda from Peterson think tanks, you overly simplifies complex economic relationships and ignores the evidence that monetary sovereign countries, like the US and Japan, have managed to control inflation despite high deficits.
  4. Taxes drain inflationary liquidity and, when targeted at inflationary behavior (price gouging, greedflation, . . .), de-incentivize those behaviors.
  5. Spending is subject to limited real resources/the inflation restraint.
  6. I worry about traitors choosing to voluntarily default on debt payments. A single, self-authorized, issuer and net supplier of an unpegged fiat currency can never default on debts payable in its own currency—unless it chooses to do so in a massive act of stupidity.
  7. We are not close to fiscal instability in the US. Japan’s debt to GDP ratio is more than 250%, yet the Yen remains one of the world’s reserve currencies. “Fiscal instability” is what the crooks scare the dum-dums with, while they steal money out the back door. Stop being a dum-dum.
  8. Contrary to dummy-dum-dum conventional wisdom, the NYT poll indicates Biden has problems with the fence sitting moderates. The brunch crowd is sleepwalking the nation into an autocracy.
  9. Orthodox economics is a political ideology costumed in mathematical nonsense to rationalize the anarchy of entrenched wealth. Always has been; and always will be. Jevons and Walras used pseudo mathematics to hide their affiliation to wealth and the political class. EK Hunt’s observed “externalities” are pervasive (the rule, not the exception) and thus render orthodox economics entirely unreliable outside the classroom. Reliance on orthodox economic theory creates “snowballing inefficiency” and “warped human development.” We live in that economic reality today. Thus the US pays interest on money we borrow, when we have no need to borrow as an issuer of our own fiat currency not pegged to any other currency or commodity. Those who profit from this inefficiency will not give it up without a fight.
  10. Edit—”chartalism” not “mercantilism”
  11. The United States, as the issuer of its own fiat currency, (the U.S. dollar, which is not pegged to any commodity or other currency), "borrows" money by issuing interest-bearing securities like U.S. Treasury bonds, notes, and bills, even though it can create money to finance its spending without borrowing. The question is why we borrow when we can just create USD’s. To answer that question requires one to understand who benefits from the choice to borrow. For the entrenched dependent on the spice that flows from the USG’s choice to borrow, any threat the system that supplies their risk-free spice stream is ridiculed as heretical. MMT is merely a lens—not policy, strategy or ideology. MMT recognizes excess USD creation will cause inflation if there is insufficient supply of goods and services for those dollars. Taxes, payable in USD’s, can drain off excess dollars. Adequate supply of goods and services for the dollar will also temper inflation. MMT is more accounting than economic theory. It is not new—its roots are in mercantilism. It describes the reality of monetary conditions once the Bretton Woods system was abandoned in 1971.
  12. Pelosi and Clyburn rallied for Henry (an anti-choice conservative) against a progressive pro-choice Latina—while knowing he was under Federal investigation. AIPAC spent $2 million to defeat the progressive Latina. Centrist dumdums claim it's a conservative district—so they ran a corrupt conservative against a hard-right conservative. Dummies.
  13. A fundamental contradiction of the US criminal justice system is that it places a high premium on law and order, yet those charged with upholding law and order repeatedly engage in illegal and unethical practice. Let the kids protest.
  14. Why orthodox economic theories fail: they pretend externalities do not exist,
  15. https://www.bloomberg.com/news/newsletters/2024-04-08/us-inflation-is-actually-being-driven-by-higher-interest-rates-jpmorgan-says
Ă—
Ă—
  • Create New...