Modern Monetary Theory

Discussion in 'Markets & Economies' started by mmm....shiney!, Sep 14, 2019.

  1. Silver260

    Silver260 Well-Known Member Silver Stacker

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    Yes, I think MMT proponents are being very naive regarding constraints.

    I have a friend who owns a concrete plant. It's current utility is around 70%. I asked him, if the government injected enough funds into the construction industry to lift your utility to 95%, would you ( and those in the industry ) keep your prices the same?

    He just laughed.
     
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  2. Silver260

    Silver260 Well-Known Member Silver Stacker

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    I'll make another point regarding construction, in particular civil construction. I work in the industry, and the following is a well known secret.

    Almost all civil construction companies deliberately under quote civil infrastructure projects. Normally either at cost or by upto 10%. It varies depending upon which government body is paying, but they know they can simply hit them up for "unforseen" variations.

    Why do you think nearly every infrastructure project runs over cost?

    Imagine what will happen, when they know the government is willing to pour money into the system?
     
  3. leo25

    leo25 Well-Known Member Silver Stacker

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    I'm not saying anything, just quoting some comments made in the talk. :) I guess it's up to everyone to interpret where they are going with it.

    Interesting how it's openly talked about today, in the past it was only the finance guys that has these discussions to keep unlimited amount of money in their hands. They wanted to keep this little detail to theirself. I guess that means the current system is coming to an end?
     
    Last edited: Dec 11, 2019
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  4. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    You could apply this to healthcare, housing, pensions, military, college, etc.
     
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  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I can chuck in some personal experience too regarding government funded infrastructure - it’s the ongoing costs of maintenance and operations that is a real drain on State and local government coffers. Air conditioning in schools, landscaping highways, cleaning hospitals and building rail lines etc have real costs in wages and energy that must be met in the future. Unless the Federal government plans to assume control over all public services in Australia (or privatise them) then there will be a greater compounding burden falling on to the taxpayer with every $ spent on infrastructure projects.

    P+Cs don’t run lamo drives coz the parents are absorbed by lamos.
     
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  6. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Just read ABC's weekly bulletin which has a piece on MMT or as ABC has called it..the "Magic Money Tree". I like that Bron.
     
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  7. leo25

    leo25 Well-Known Member Silver Stacker

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    How is that any different from the government selling it's own debt to Primary dealers to pay for stuff, then have the FED buy up existing debt in the "market" with fresh new credit? This has been happening extensively for the past 10 years, so nothing new. How else do you think treasury can always clear an auction selling at close to 0% interest without any resistance. The reality is governments haven't been limited by its spending for a VERY long time.

    That's why US government debts chart look like this. If you never have to repay then keep spending. 23 Trillion and who's counting anymore.

    Screenshot_2019-12-13 United States Government Debt 2019 Data Chart Calendar Forecast.png


    And here is Australia government debt at 400 Billion and counting. Soon ScoMo will ramp up debt when the housing market starts falling. RBA has already been telling the government to spent like there is no tomorrow.
    Screenshot_2019-12-13 Australia Government Net Debt 2019 Data Chart Calendar Forecast.png
     
    Last edited: Dec 13, 2019
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  8. leo25

    leo25 Well-Known Member Silver Stacker

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    I have no idea what he is saying, but i do know it's something to do with money. Just like when Jerome Powell talks.

     
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  9. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    It's why they fenced off the roof of Parliament House. We were told it was to prevent terrorism. The reality is they didn't want kids to fall through coz there's no debt ceiling.
     
  10. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    They could print what they need to fix climate change, send trillions to the poor countries. We could be the richest planet in the solar system. If we cant go bankrupt then what are we waiting for. Start pulling money off that magic tree.
     
  11. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Green New Deal.
     
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  12. JulieW

    JulieW Well-Known Member Silver Stacker

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    Don't chuck in the day job just yet!!

    :D:D
     
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  13. JulieW

    JulieW Well-Known Member Silver Stacker

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    "You know what I'm sayin' ?"

    Not a word but I got the message!
     
  14. leo25

    leo25 Well-Known Member Silver Stacker

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    lol I didn't even realise he was saying "you know what i sayin". I thought i was having a stroke listening to him ramble.

    Wish ScoMo could chuck me a few bags of $100 bills, maybe that day will come in the not too distant future. :) :confused: :(
     
    Last edited: Dec 13, 2019
  15. openeyes

    openeyes Well-Known Member Silver Stacker

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    Look forward to it but don’t look forward to it “You know what I’m saying’”
     
  16. JulieW

    JulieW Well-Known Member Silver Stacker

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    Funnily enough, it seems to me that people who say "you know what I'm sayin' ", don't actually know what they're saying.
     
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  17. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Modern Monetary Tsocialism.
     
  18. leo25

    leo25 Well-Known Member Silver Stacker

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    Flash back to 1975 when debt and budged meant something. I love these old video.

     
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  19. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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  20. 66rounds

    66rounds Well-Known Member Silver Stacker

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