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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    Yea because it was spent on production, it made the average American richer beyond their wildest dreams. Well everyone except you apparently :D

    Now money printing in and after 2008, that’s a different story. There I will 100% agree with you. That kind of money printing will make the average person poorer.
     
  2. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Only the elite get rich from wars. The general population supplies labor and supplies bodies.
    My gpa was early 20s in ww2 in the navy. He never got rich from it.
     
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  3. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    You guys just make shit up I think.
     
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  4. alor

    alor Well-Known Member Silver Stacker

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    Pepe Escobar
    49 mins ·

    HOW THE U.S. LOST WWII - AND THE SEQUEL - IN 5 MINUTES
    It's EXTREMELY RARE to have an analysis as sharp as this one coming from the top of the top of the US establishment.
    Yet my sources never disappoint. You will NEVER read such a thing on Foreign Affairs magazine.
    I edited it - these are the highlights:
    "The total debacle of World War Two came about as we fought Germany and Japan to prevent them from holding hands after defeating Europe and China thereby controlling the Eurasian land mass only to find in 1949 that the Russians and the Chinese held hands controlling the very land mass that we had fought Germany and Japan over. We essentially created the vacuum that Russia and China moved into. It was a colossal blunder."
    What follows is a spectacular quote from "Hitler and His Generals" - which is a record of military conferences.
    Goering: "They (the Brits and the US) entered the war so that we would not reach the East (that would be Japan, ruling over China), and not that the East (as in Russia) would reach the Atlantic."
    Hitler: "That's quite clear."
    He also quotes from "Conversations with Stalin", by Milovan Djilas:
    "We (Milovan Djilas, side by side with Stalin) stopped on our way to the dining room to view a map on the wall of the world where Russia was colored in red. Stalin waved his hand over Russia and said: "They (the US and Britain) will never accept the idea of such a great space should be red, never, never!"
    And with that our main character comes to the punch line:
    "The United States lost World War Two whose sole purpose was to prevent the Eurasian heartland from going under the control of antagonistic powers only to find themselves that way in 1949. This war was not fought against National Socialism or Japanese fascism, but purely over the geopolitical balance of power concept of Halford Mackinder."
    Yes, the US ruling class knows everything about Mackinder.
    And that's why - as I have hammered over and over again in my essays for years now - they are freaking out with the Russia-China strategic partnership.
     
  5. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    https://www.bloomberg.com/news/arti...f-looming-liquidity-crunch-spooking-investors

    Yes, China is the world's biggest fiat printer. All the fiat yuan has gone into the apartments and office blocks. The trouble is the apartments remain after you built them, so they are not consumed and this adds to the oversupply. The result is asset deflation and asset deflation threatens the financial system.

    I think we might be finally seeing a real estate implosion next year. Of course, they could always nationalise. But it will be messy. How do you nationalise a couple hundred million apartments?

    https://www.edgeprop.sg/property-ne...ee-strongest-rent-growth-over-next-five-years
     
    Last edited: Sep 27, 2020
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  6. willrocks

    willrocks Well-Known Member Silver Stacker

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    In 2020 China's GDP went into negative territory and is still well below the lows of the 2008/09 financial crisis. Won't that huge drop in demand cause a drop in prices? Perhaps even an implosion in their markets?
     
  7. willrocks

    willrocks Well-Known Member Silver Stacker

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    I'm not saying 'massive money printing alone causes hyperinflation'. I'm saying it's a primary cause in many cases.

    Here's a list of all the major known cases of inflation. Which ones do you believe were a not a result of money printing (i.e. they were caused by supply shocks ... etc):

    Rome - 235–284 AD
    Austria - 1922
    Bolivia - 1985
    Brazil - 1985-1994
    China - 1943-1945, 1947-1949
    France - 1795-1796
    Germany - 1920-1923
    Greece - 1941–1944
    Hungary - 1919-1924
    North Korea - 2009-2011
    Peru - 1980s-1990s
    Poland - 1989–1990
    Philippines - 1944
    Soviet Union - 1921-1922
    Venezuela - 2016-present
    Yugoslavia - 1992-1994
    Zimbabwe - 2007-2008
     
  8. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Just for comparison, housing in Beijing is more expensive than Sydney but wages just a fraction. In case if you wonder why anyone who can get their money out is buying your property.
     
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  9. alor

    alor Well-Known Member Silver Stacker

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    there are always people who believe that the economy of China would crashed, they have been wrong for the last 20 odd years, may be they will continue to be wrong in the next 20 years :D
     
  10. alor

    alor Well-Known Member Silver Stacker

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    a lot of people need a home, that does not make it a good investment, just push up the price
    for people who could not get a unit, but still have the money would naturally look else where, or they just looking for investment in other places
    some people own the whole blocks of units etc
     
  11. alor

    alor Well-Known Member Silver Stacker

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    China - 1943-1945, 1947-1949 was ROC to then 1949 PRC
     
  12. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    The economy in China was already bad late last year, was told by my Chinese neighbour. You’ll never read this on Bloomberg, CNN or any MSM.

    A lot of people mistake Huawei for the Chinese economy when 80% of the jobs are domestic economy, construction and real estate, local consumption, nothing to do with exports or electronics.

    When you have a massive population and need to create so many jobs and feed so many mouths, you can do very well and it is still not good enough. The job of the Chinese government is harder than most people can imagine.

    But eventually, they will still need to nationalise the housing market, only matter of time. Should have done this 10 years ago. It will help make housing more affordable in the long run.
     
    Last edited: Sep 27, 2020
  13. leo25

    leo25 Well-Known Member Silver Stacker

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    Some, but not all money spent goes into apartments.
     
  14. leo25

    leo25 Well-Known Member Silver Stacker

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    according to @alor you are wrong. He thinks China is the most amazing place in the world and the CCP are wonderful. :p
     
  15. leo25

    leo25 Well-Known Member Silver Stacker

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    yes I agree if done wrong it could cause hyperinflation. Maybe I’m confusing something you said with something @JohnnyBravo300 said.

    Anyway that list shows cases where it went wrong, then there are cases where it didn’t lead to hyperinflation. For the past 10 plus years almost every country has printed like never seen before, yet (so far) no hyperinflation. But there has been a lot of wasted spending.
     
    Last edited: Sep 27, 2020
  16. mmm....shiney!

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

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    @willrocks you’re going around in circles. Watch the 2 videos. You need 2 factors in place before excessive money printing causes hyperinflation. None of those countries you listed experienced hyperinflation simply because of excessive money printing.
     
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  17. leo25

    leo25 Well-Known Member Silver Stacker

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    There are always people who believe that the economy of America would crash, they have been wrong for the last 50 odd years, maybe they will continue to be wrong in the next 50 years :D
     
    Last edited: Sep 27, 2020
  18. leo25

    leo25 Well-Known Member Silver Stacker

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    No, because in China you get jailed for trying to sell your property. :) But to your point, China building poorly built apartments no one wants is a good example of money printing done bad. I'm sure @alor will defend this though.
     
    Last edited: Sep 27, 2020
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  19. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Hyperinflation has occurred in many ways. stock markets
    commercial real estate
    house prices
    a college degree
    any medical care

    Everything the govt subsidizes heavily has experienced hyperinflation, more rapid price rises than average inflation no doubt.
    Once cash starts moving from equities or housing into other areas it can transfer the hyperinflation there too.
     
  20. mmm....shiney!

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

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    ^ not hyperinflation.

    https://www.investopedia.com/terms/h/hyperinflation.asp
     

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