Modern Monetary Theory

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

  1. crewy

    crewy Active Member

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    For me it’s all about debt and derivatives, dont know what MMT says about total debt levels however doesn’t really matter what theory you base your relatively small amount of money printing on if you allow $1,500Trilion in derivatives.
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    gotta tip your cap at how they’ve kept it all together so far really, but it only ends one of two ways. Financial system instability and more band aid stimulus, or letting the markets work and flush out the bad bets/betters. Don’t think they can keep the house if cards / debt stable enough for long enough without ruining the world long term. Realise derivatives market size is a guesstimate but even investopedia.com says its $1 quadrillion!
     

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  2. leo25

    leo25 Well-Known Member Silver Stacker

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    Great video by Milton Friedman giving a lot of background behind MMT. Video was made in 1980 and talks about MMT ideas in the 1920s. Once again MMT is nothing new. :p

     
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  3. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    ^^This! Exactly!

    Chuckle :p

    2iluiih0cju61.jpg
     
  4. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    An example of why current economic policy is not based upon the principles of MMT:

    https://www.axios.com/biden-plans-t...=editorial&utm_content=politics-bidenspending

    Taxes (Federal) are not a source of revenue. Taxes are debits on an account. They are not used to fund spending or the redistribution of wealth. They are money removed from the system in the same way that points are deducted from a player at the end of a Scrabble game. These points are not awarded to other players, they simply "disappear" into the ether. Maybe. Who knows where they go? They just simply de-exist.

    Just as taxes de-exist money in the real economy, Biden's budget will come from money that Treasury shoots out of Beaverville. Where before there was no money, now there is. Biden's tax plan is either an example of a demonstrably shallow lack of understanding of how our modern currency system operates, or a deliberate act of public policy. Or maybe a bit of each.
     
  5. Mill3d

    Mill3d Active Member

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    Interesting (off chops) take

    Taking earnings off one person and giving it to someone else is all there is

    Botton line always is someone works to create something, someone else sees this and takes the opportunity to become the intermediary between creators

    America is in the throes of being destroyed. We will be swept away quickly after that. There’s nothing afterwards.

    You can talk of tax out of Beaverville but guess what? Libertarians are now on terro watchlist? :eek:

    Not long before I guess you’ll ditch your silly ideological fantasies :eek::D:p
     
  6. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    Spending comes out of Beaverville not taxes.
     
  7. Mill3d

    Mill3d Active Member

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    Spending usually goes into beaverville
     
  8. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    Value is subjective
     
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