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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    ...
     
    Last edited: Nov 6, 2020
  2. Markco2

    Markco2 Active Member Silver Stacker

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    Hey Leo,

    I understand you were probably just point scoring.
    However, I find it distasteful to say the least.

    Many Victorian families are suffering from the loss of loved ones, including the ones we don't hear about.
    The ones who have taken their lives because they were no longer able to cope.
    In fact, I have a work colleague who tried to take her life recently and is now recovering in a psych ward.
    Young, so much going for her, looking after her brothers son who has autism.
    As well, she was a frontline worker in disability that has had to endure this whole time under strict guidelines, having
    to manage her private life including the rigorous strain of working away from home doing sleepovers.
    It's a difficult role and I don't know if she will ever recover. Very sad story.

    That, I am sure is just one statistic among many others that we don't hear about.

    So please consider your words carefully next time.

    Cheers Markco2
     
  3. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Sounds like many around the world are starting to realize that govts have thrown them under a bus and have no care for them.
    If nothing else this whole scam might wake some people up to the truth.
    It's too bad that so many just follow without question and they actually believe staying home without a paycheck is better than getting a flu.
    I've never understood this mindset since it started.
     
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  4. leo25

    leo25 Well-Known Member Silver Stacker

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    Point taken.
    I know many people that live in Melbourne and most seems to misguidedly love Dan and think the lock down was a good thing, as they feared Covid more. So i guess i didn't realise things were really as bad as you say.

    If it really is as gloomy as you say then i find it even more distasteful that most Victorians would agree with the lock down knowing how bad it's effecting many of their people. Nearly all Covid deaths where in the age group of 80+ and most were going to pass soon anyway due to old age. It's a disgrace what the government did and what most people agreed to with the heavy lock down which caused unnecessary damage to the general population. :( The actions of being scared caused more damage then the thing people were scared of.

    The sad reality is all that was done just so comrade Dan Andrews could score some points. If i was you i would write a hefty letter to him.
     
    Last edited: Nov 7, 2020
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  5. Markco2

    Markco2 Active Member Silver Stacker

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    Hi Leo,

    I can tell you that there are many that won't be voting for him at the next election.
    As a union delegate, I am p-ssed off with both the unions and Labor. I never voted for either major parties
    and I won't be again. Domestic violence was on the up during lockdowns. When you are in lockdown, it is like a grieving process
    because you know part of your freedom has been eradicated. You have no where to go when things get tense at home. How would it be for people living in flats and apartments? Buying Alcohol online soared as well as online shopping.
    You can't visit family, friends. Not being able to travel outside a 5klm radius without a special working permit.
    Society becomes aggressive during that time.
    There were plenty of incidents where people lost it, especially at supermarkets.
    People that are drug dependant, can't get their next fix. How do they cope given the circumstances?

    These are social issues that shows societies vulnerability when placed under extreme circumstances.
    Unfortunately, Police and Psych Wards were one of the first point of call when people can't cope.

    If those mandatory lockdowns had been instigated in other areas across Australia, it would have produced the same outcomes.
    The true economic cost will take time to unravel and the social cost, even longer.

    Cheers Markco2
     
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  6. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Quoted from here: https://www.abcbullion.com.au/investor-centre/pdf/interest-rates-lower-for-longer#.X6XZhRlxWDY

    The RBA is less reassuring, saying in their September report in a section titled “Would cash be withdrawn?” that while “there may be resilience and accessibility benefits from retaining physical cash”, “it would be costly for the economy to maintain systems to support two different types of central bank currency” and thus if people took up the new CBDC and cash use fell, “there might be an argument for removing cash (including to ensure that it was not facilitating illegal transactions)”.
     
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  7. precious roar

    precious roar Active Member

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    Two sides to every story.

    There are many who believe that the lockdown approach was correct, and that apart from the Hotel quarantine bungle, Andrews did handle to situation correctly. There are valid arguments on both sides of the fence so it is definitely not a black and white issue.
     
  8. leo25

    leo25 Well-Known Member Silver Stacker

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    Nowhere in that does it describe cash being incompatible with a CBDC. It's just saying using cash adds an extra cost/time in doing business. Obviously if the vast majority of people freely stop using cash, then at some point there will be no point continuing to support it.

    So for the time being, the RBA is saying that it comes down to the choice of the people if cash continues to be supported or not. If the people want to continue using cash then the RBA is happy to support it. Just like how the RBA is supporting the markets desire to hold physical cash, they are more then happy to create as much physical cash as the market wants.

    There has also been a few talks where the RBA describes the benefit of retaining cash for redundancy reasons. If the internet gets disrupted, then it's always good to have a back up payment option.
     
    Last edited: Nov 7, 2020
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  9. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Let's hope they maintain their "support" for physical cash.
     
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  10. leo25

    leo25 Well-Known Member Silver Stacker

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    And lets hope people continue to use cash to voice our desire to keep it around. :) Every person should keep at least a $20 note in their wallet at all times, you never know when it will come in handy.
     
  11. 66rounds

    66rounds Well-Known Member Silver Stacker

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    I only pay in cash, have walked out of stores that only take card. I don't mind if it's some niche coffee trolley on the side of the road, but apart from that it's cash only for me
     
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  12. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    We still use a lot of cash over here. In my younger days, I used cash almost all the time so I had a leather coin pouch to keep my coins. Nowadays, I use the NETS card more often, a kind of local debit card that is secured by PIN code.

    I use the cc only when it is needed for discounts and now for online purchases. If I could avoid using the cc I will as I don’t want to spend time to check my statement every month for suspicious transactions.
     
  13. willrocks

    willrocks Well-Known Member Silver Stacker

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    I was in New Zealand last year. I took a bunch of NZ dollars but they were useless for buying fuel. Every fuel station required a credit card.
     
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  14. leo25

    leo25 Well-Known Member Silver Stacker

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    New Zealand is too far gone. Jacinda Ardern happily turned it into a nanny state.
     
  15. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    In a small country, external threat is much greater than internal threat. The dynamics are different.
     
  16. mmm....shiney!

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

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  17. 66rounds

    66rounds Well-Known Member Silver Stacker

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  18. mmm....shiney!

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

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    Probably. But it's not going to trickle down any further than my SMSF account/mortgage offset.

    And it's because the future still holds too much uncertainty because the government and the RBA can't promise (won't) that they will implement policies to install confidence back into the business community.

    Edit to add: it's Koo's balance sheet recession.
     
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  19. alor

    alor Well-Known Member Silver Stacker

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    its spending too much on the yellow metals buddy
    [​IMG]
     
  20. mmm....shiney!

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

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    Lowe spoke tonight, most of it was just the usual rambling we've become accustomed to lately. There was one small hint of where his mind is at regarding debt, on fiscal policy he had this to say:

    https://www.rba.gov.au/speeches/2020/sp-gov-2020-11-16.html

    The monetarist is still strong in this one.
     

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