Modern Monetary Theory

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

  1. leo25

    leo25 Well-Known Member Silver Stacker

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    This is about 5 years old, Australia has accelerated its usage since. It seems people in Australia and America find it hard to cope and rely on antidepressants and alcohol to get through the day. Something very wrong in our society/economy.


    [​IMG]
     
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  2. Stoic Phoenix

    Stoic Phoenix Well-Known Member Silver Stacker

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    Fixed it for you.

    The kickbacks G.P's get for (over/unnecessarily) prescribing this or that behavioural modification med over another particularly in USA is scandalous.

    Tick up enough sales...dolla dolla bills y'all, cars, holidays, etc.
     
    Last edited: Aug 27, 2020
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  3. mmm....shiney!

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

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    Bill Mitchell again:

    http://bilbo.economicoutlook.net/blog/?p=45688

    There's that housing shortage we hear of again.
     
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  4. leo25

    leo25 Well-Known Member Silver Stacker

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    In Australia GPs don't get any kickbacks, not sure about America. Regardless, that fact people are asking for it is an issue in and of itself.

    The reason why many GP's prescribe antidepressants is due to pressure from the people and government.
    If they prescribe antidepressants and then the person kills theirself the GP is covered. Whereas is they don't prescribe anything and the person kills theirself, they are prosecuted by the medical system/government and attacked by the family.
     
    Last edited: Aug 28, 2020
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  5. leo25

    leo25 Well-Known Member Silver Stacker

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    What's Bill smoking?
     
  6. mmm....shiney!

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

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    Same thing as the RBA?
     
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  7. leo25

    leo25 Well-Known Member Silver Stacker

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    I want to try some and experience this mind trip :D
     
  8. Stoic Phoenix

    Stoic Phoenix Well-Known Member Silver Stacker

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    You will find more cases of a doctors recommending a drug as opposed to being asked for it if you take repeats out of the equation@leo25

    Drs here get kickbacks in a number of ways - one example is 33 pharmaceutical companies spent a (disclosed amount of) $8.6 million on events attended by healthcare professionals over a six-month period in 2018...thats here in Australia. (You dont think theres "gifts and giveaways" at these events?)

    Dont kid yourself that they are not getting kickbacks in one form or another
     
    Last edited: Aug 28, 2020
  9. leo25

    leo25 Well-Known Member Silver Stacker

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    I know many doctors which talk very openly with me and non get any kickbacks. All there are today is free (average) lunches and free pens, though it was more as you described going back a while.
     
    Last edited: Aug 28, 2020
  10. Silver260

    Silver260 Well-Known Member Silver Stacker

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    Yep, and thank f**k our economy has become dependent upon it.

    6 months ago I had a discussion with my boss ( of 10+ years ) , who was worried about the potential impact of the virus on the construction industry. My exact words were, "yea, I'm concerned. But I'm also expecting the government to introduce another stimulus package to counteract the decline “.....

    Then cometh 25k....

    Never seen the number of enquiries, ever, in 2 decades of the housing industry.

    The printers will always go brrrrrr....... For housing.
     
    Last edited: Aug 28, 2020
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  11. leo25

    leo25 Well-Known Member Silver Stacker

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    After listening to the latest FED talk i think we are close to full implementation of MMT. Governments are still struggling with the idea, so until they understand what they can and should do, central banks will be doing the spending directly into the private sector.

    I like what Europe is doing with their banking system, if banks lend into the real economy they get to borrow at a negative rate as an incentive.

    Also the FED is making it very clear to everyone, expect inflation!
     
    Last edited: Aug 28, 2020
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  12. Silver260

    Silver260 Well-Known Member Silver Stacker

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    Inflation averaging has be on the cards since last year ( if not before ) , if I'm not mistaken?

    Edit :
    And BTW, completely off topic. But I'm glad to be back here. I took a few months off news / finance. Been watching car reviews!!. Let me know if want any recommendations.... Lol.
     
    Last edited: Aug 28, 2020
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  13. leo25

    leo25 Well-Known Member Silver Stacker

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    Yes and no. Before they said they would allow higher inflation rate If the economy produced it, but now they said they will directly make it happen.

    I guess they got tired of waiting for the private sector and government to spend in the general economy.

    South Australia is a good example of old school thinking. Their state treasurer is trying to cut spending and balance a book that is beyond repair. Even though the RBA has said they can have more or less unlimited funding to do much needed and desired projects.
     
    Last edited: Aug 28, 2020
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  14. Silver260

    Silver260 Well-Known Member Silver Stacker

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    MMT by proxy?

    I only say that because Government seem to be scared of the concept. Probably due to the fact that they've spent decades convincing voters that government debt is evil..... Especially if it was created by the previous government.... Mmmmm
     
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  15. leo25

    leo25 Well-Known Member Silver Stacker

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    Yes, unfortunately the general economy has suffered because of government ego and stupidity. The Liberals spent so much time attacking Labor for spending, they will rather see the country burn then admit they are full of shit.
     
    Last edited: Aug 28, 2020
  16. Ronnington

    Ronnington Member

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    Japan has proven over the last 25 years that Keynesian economics does not work. They have tried to print their way to prosperity, they've had government policies that have kept zombie-banks alive, they didn't let deflation happen, they didn't let it run its natural course and let the debt clear. And because Japan didn't let their Depression happen in the early 1990s they have been in a coma-economy going nowhere since.

    "If you don't go through Winter, you don't get to Spring"... they've had zero GDP growth on average and have been frozen.

    In 1991, real estate went down 60% in Tokyo and even 24 years after that - when I went to Japan in 2015 [​IMG] - it was still down 60% because not only was it bubbled-up and had to deflate back down to some form of affordability, but Japan has the next-generation which is substantially smaller than the Baby-boomers, so even when the young generation are buying houses it should drive up prices, except in Japan they have more old people dieing (sellers) than young people buying homes. Despite endless Quantitative Easing their stock market went down 80%....

    I went to Japan & China in 2001 and 2015; China overtook Japan at an alarming pace in that time. Japan has been frozen in time. They were lucky during their bad times they had the West to export to, while the West was booming before 2008.

    There's more money than debt in financial assets that have been over-inflated by Quantitative Easing and we've had an artificial bubble because governments have tried to keep the bubble going, instead of letting it pop naturally. They can't keep it going forever, it's impossible. They will not be able to successfully print theirselves out of this mess.

    Japan has terrible economic demographics, sinking economy, aging society, sinking birth-rate because young adults can't afford to breed. But in relation to the UK, Australia and NZ, we have millions and millions of baby-boomers approaching retirement, only to find their homes and nest-egg is cracking...
     
  17. mmm....shiney!

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

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    Welcome to this thread @Ronnington, I'm sure you'll get a a solid response from @Leo on the topic of Japan.

    I'm in his camp when it comes to the Japanese economy I think. They are one of only 8 economies in the top 20 which have experienced a rise in prosperity levels over the past 10 years, along with the land of the long white cloud. 10 of those countries have seen their levels decline including the land of the shit brown expanse and the US of A. Declining birth rates and ageing societies have a high degree of correlation with increasing prosperity and are not purely a Japanese phenomena.

    But I don't know much more about the place, so I'll sit back and watch. :D
     
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  18. Ronnington

    Ronnington Member

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    I do find those global surveys and graphs interesting, but I take them with a pinch of salt and wonder who funds their research (follow the money etc)

    I've lived in NZ for 6 years now and think the average standard-of-living has reduced in that time - certainly not prospered. Especially since 2016... I really don't understand when these global reports rank NZ as one of the most prosperous countries because in reality I can't see it when compared with Australia and the UK.

    NZ seems to take one step forward and one step back, as a country it's skint.
     
  19. mmm....shiney!

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

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    I guess sometimes the anecdotal evidence doesn't line up with the scientific or statistical evidence. ;)

    But interesting you should say that because NZ's scores for "Living conditions" and "health" are both placed outside of the top-20 according to Legatum.
     
  20. Ronnington

    Ronnington Member

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    The problem with surveys and graphs is they can be manipulated to represent whichever agenda the pay-masters/publications see fit - WHO being a prime example, among others.

    For every graph/survey I see that states one point, with some digging I can find another that says the opposite; without going off on a tangent I've seen/read this in-depth with the Climate Change arguments on both sides.

    And I suppose it's how they measure prosperity and whether that's from generic baseline figures as a whole or from a working-class/middle-class perspective.

    From the latter, there's no way NZ has prospered in the last 10 years, so it has to be (extremely) high net-worth foreign investors moving to NZ. The Cost-of-living to Wages ratio is one of the worst among western countries. It's the top 2% propping up the rest of the country. NZ has one of the largest poor-wealth gaps among developed nations
     

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