The looney left has found yet another economic theory to ruin us with

From The Times reprinted in The Australian. Insane enough just as an economic principle, but to have it endorsed by Alexandria Ocasio-Cortez and then presented as a sensible idea by the Economics Editor of The Times in London [!!!!!] shows how low we have fallen. If someone cannot work out how insane this is, they cannot be said to have even the most preliminary grasp of how an economy works. But let me give you a hint. The aim is to open the spigot to public spending almost to an infinite extent since a government printing money in one’s own economy and then spending it apparently has no downside. And then when the price level starts to rise, you increase taxes to put things right again. I love the idea of trying to raise taxes as prices are rocketing while interest rates are held level. That this is not seen as obvious idiocy and an invitation to disaster really makes me wonder how far gone economic theory now is. That it is even being published in respectable newspapers is more depressing than almost anything else. But he certainly gets one thing right: the policies adopted after the GFC have been a complete failure. Now on to the column.

Modern Monetary Theory: Who’ll be brave enough to try it?

US Democrat Alexandria Ocasio-Cortez is a champion of Modern Monetary Theory.
US Democrat Alexandria Ocasio-Cortez is a champion of Modern Monetary Theory.

In the past decade, the world has suffered two global crises: the financial disaster of 2008 and the eurozone sovereign debt crisis two years later. Policymakers responded with bailouts, cheap funding schemes, zero interest rates and quantitative easing. In one sense, the past ten years was a period of intense economic experimentation. In another, nothing has changed.

Following previous crises, macroeconomic ideas were replaced. After the Second World War, Keynesian, under which governments spend to create demand and protect jobs, was ascendant. After the inflation-induced recessions in the 1970s, the big idea was monetarism, using interest rates and the money supply to keep prices under control.

And now, after two existential crises? Nothing. The fundamental macroeconomic ideas have not changed. Labour and the Tories do battle on the scale of the deficit, like two old fools arguing who should pay for the last round long after the bar has closed. Beyond that, John McDonnell’s socialist revolution is pilfered from crumbling communist textbooks. It’s all a bit disappointing.

A new idea is slowly gaining momentum, though, particularly in the United States, where the charismatic Democrat Alexandria Ocasio-Cortez has been championing it. The idea is modern monetary theory and, as with many new ideas, it is not actually that new. Its origins date back to 1993 and it even featured in the 2016 US election. Bernie Sanders’ economic adviser was Stephanie Kelton, a prominent advocate of MMT.

At first glance, the theory seems barmy. As long as a government borrows in its own currency, it need never default because it can always print the money it needs. Described that way, MMT sounds like that other MMT, the magic money tree, or Jeremy Corbyn’s “People’s QE” – the kind of thing Weimar Germany and Zimbabwe tried with devastating inflationary consequences. But that’s because we’re looking through the wrong end of the telescope….

What MMT does prove, however , is that we will not run out of new ideas as long as we can describe the world in different ways. That, at least, is encouraging.

Philip Aldrick is Economics Editor of The Times

He thinks it’s great that we have new ideas to consider. We will certainly never run out of stupid ideas. One more post-modernist crank. This was the most acute comment at The Oz which exactly states what needs to be said, written by “Tony”.

This is seriously dangerous stuff. Fundamentally, money is not wealth, i.e. income producing assets, goods and services etc, but rather just a system for exchanging such. One can argue about Keynesian and Monetarist policy till the cows come home but ignoring the fundamentals of wealth creation through favorable investment (not speculative) conditions and rising productivity always produces rising living standards for workers and good margins for capital. The State can then appropriate (Tax) a portion of that generated wealth. Fundamentally, increasing the money supply by Gov does not produce more wealth- that is impossible- but at the margins it is useful for ironing out the natural cycles of investment but that is it.

It is bananas to think that printing money actually creates real wealth and is safe to do so as long as we borrow from ourselves or foreigners in our own dollars. If this fallacy were true, why would anyone invest or work at all? Lets just print money and borrow in AU$ and sit at home relaxing on a “universal income” paid by Gov. Wow, that sounds great. Where do I sign up? OK, vote Greens or ALP, no probs.

Having gone through the entire comments thread, there was not a single positive comment made by even a single person who had read this nonsense through. There is hope for us yet but only marginally if this is the kind of stupidity that is now gaining currency on the left.

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65 Responses to The looney left has found yet another economic theory to ruin us with

  1. stackja

    currency on the left.

    Leftist currency by the wheelbarrow?

  2. mh

    Fisky and Infidel Tiger are believers in MMT from the regulars on the Cat.

  3. Exit Stage Right

    I bet The Worlds Greatest Evah Treasurer, Wayne Swansteen would fully endorse this economic approach.
    In fact, I suspect that this printing of money to cover the huge debt that Labor created when in Government was in the back of their collective minds, hence the spending spree. The Left has always looked to Commo countries such as Cuba, Venezuela, Russia, North Korea etc as shining lights of the progressive future.
    Ocasio-Cortez is just plain dangerous as many on the Left will swallow her crank theories.

  4. jock

    I wondered if cats had picked up on this dangerous drivel. What the hell has happened to the times? Its leftist. Pro EU and pro PC .

    Socialists are alwsys looking gor a third way to fund their big spending dreams. Taxing folk tends to be hard work. Printing money is easy. . But in the end hitler that great socialist had to loot other countries to keep his war hoing.

  5. DaveR

    The reading of history as a guide to what can happen in the future – if people dont learn the lessons of the past.

    Lets think now…….the Weimar Republic 1921-23, printing of currency to finance…in this case re-armament, hyperinflation, collapse, unemployment and of course what it led to is well known.

    What could possible go wrong with this sort of “new” economic thinking from the left?

  6. Entropy

    What MMT does prove, however , is that we will not run out of new ideas as long as we can describe the world in different ways. That, at least, is encouraging.

    Classic post modernist claptrap. Every idea validates and defines its own reality.

    If ever there was a quaint belief that economics was a science, this sort of platitudinous bilge should pretty well kill such thought off.

  7. Entropy

    But that’s because we’re looking through the wrong end of the telescope….

    Or our lyin’ eyes. Better to close them and just feelz.

  8. Confused Old Misfit

    Fiat currency as a commodity.
    Tulip bulbs.

  9. Ubique

    The journalists at The Times studied economics with Robert Mugabe, Hugo Chavez and Kim Jong-un.

  10. The BigBlueCat

    What economic accreditations does Alexandria “Sandy” Occasional-Cortex actually hold?

  11. Faye

    We have ordered our counterfeit money making machine for when the Left take over. It will go in the Laundry.

  12. mh

    The journalists at The Times studied economics with Robert Mugabe, Hugo Chavez and Kim Jong-un.

    I remember Mugabe decades ago saying that his country had an economic system “far more enlightened” than the West. It didn’t end well.

  13. OldOzzie

    Confused Old Misfit
    #2913133, posted on January 21, 2019 at 12:57 pm

    Fiat currency as a commodity.
    Tulip bulbs.

    COM,

    besides Tulip Mania

    you forgot

    MEMOIRS
    OF
    EXTRAORDINARY POPULAR DELUSIONS
    AND THE
    Madness of Crowds.

    By CHARLES MACKAY, LL.D.

    Covering

    – THE MISSISSIPPI SCHEME.

    – THE SOUTH-SEA BUBBLE.

    – THE TULIPOMANIA.

    – THE ALCHYMISTS.

    – MODERN PROPHECIE

    – FORTUNE-TELLING.

    – THE MAGNETISERS.

    – INFLUENCE OF POLITICS AND RELIGION ON THE HAIR AND BEARD.

  14. OldOzzie

    mh
    #2913145, posted on January 21, 2019 at 1:08 pm

    The journalists at The Times studied economics with Robert Mugabe, Hugo Chavez and Kim Jong-un.

    I remember Mugabe decades ago saying that his country had an economic system “far more enlightened” than the West. It didn’t end well.

    From Monday Forum

    Soon to be South Africa

    “It Feels Apocalyptic” – A Letter From Zimbabwe, Where The Country Remains In Total Shutdown

    Zimbabwe is once again at the brink of economic collapse, making a mockery of President Emmerson Mnangagwa’s claim that the country is open for business.

    As Bloomberg reports, many shops and factories have shut their doors because of a lack of customers and those that continue to trade are open to haggling over prices to secure hard currency. At an appliance shop in the capital, Harare, a salesman whispers that a Whirlpool Corp. washing machine priced at about $5,000 if paid for electronically will sell for $1,500 in cash, while at a nearby electrical warehouse, a $600 invoice is whittled down to $145 for payment in dollar bills.

    But, as OilPrice.com’s Tsvetana Paraskova reports, Zimbabwe is on a three-day nationwide strike and protests are erupting in the streets after the government of the southern African country doubled fuel prices, making gasoline sold in Zimbabwe the most expensive gasoline in the world.

  15. Dr Fred Lenin

    It must be crap if that carsie sheila likes it . Yiu know the English word carsie means toilet ,and thsts where the economy will go down . Good name for the commo tosser ,shirthouse in Aussie .

  16. max

    This crackpots ideas are result of government involvement in money business.

  17. Tel

    What MMT does prove, however , is that we will not run out of new ideas as long as we can describe the world in different ways. That, at least, is encouraging.

    Currency devaluation is not a new idea… the Romans tried it. MMT is just a new line of patter in a very old shell game.

  18. JC

    Lol, The Pink Times is pushing Chartalism now and it’s calling it a new idea? FMD

    MMT is stupid. MMT is basically Keynes on steroids.

    Here’s the essential difference between say the US monetary system and Venezuela.

    Yes, the US can pump liquidity in order to raise nominal GDP. It can do this while bond yields only move up a smidgen. The reason is that the US is trusted by markets the moment an inflation target is reached it will stop adding liquidity. You cannot trust Venezuela to do the same and that’s the reason the US has not fallen to hyper inflation while Venezuela has.

    MMT would immediately telegraph to markets that the US no longer could be trusted and it’s time to sell US assets.

  19. JC

    Let’s ponder this for a second this hypothetical scenario.

    Sandy Occasional-Cortex is elected Presidentress and appoints a MMT advocate to the Fed Chair along with board members. Markets won’t make any sound and continue along in their merry way without trashing all classes of US assets with bond prices hitting junk status in a NY minute.

  20. John Constantine

    “Effectively exercising the public’s right to create and spend its money would require a wide range of democratic decision-making. Questions about the level of taxes, redistribution of income and wealth, whether to tax resource use or land, which expenditures should be taxed, etc., would need to be democratically determined. However, given the basic income and extensive public services included in the proposal, there would be much less need for the accumulation of wealth or for investment programs such as pensions, which are major drivers of growth. This, in turn, would justify even greater taxes on existing wealth. Moreover, since there would be less need for investment opportunities, public money could be created and used to purchase natural resources and utilities currently in private hands, bringing them back under public control.”

    https://www.greattransition.org/publication/money-for-the-people

  21. John Constantine

    “All modern currencies are “fiat money,” created out of nothing, their value sustained by public trust and state authority. So why are states and their citizens shackled in debt? Why can’t the people simply create the money they need free of debt? Why can’t that money be circulated in a not-for-profit social or public sector? Why base the principles that govern our economic system on the butcher, the baker, the candlestick maker, and the hidden hand of the market rather than the doctor, the teacher, the care worker, the artist, and the not-so-hidden hand of a solidarity economy?5 As these questions make clear, freeing ourselves of misconceptions about money opens the door to new possibilities for driving a transition to a just and sustainable economy.”

  22. Confused Old Misfit

    you forgot

    I was trying for brevity.

  23. Eyrie

    I thought that Zimbabwe and Venezuela had already been brave enough to try MMT?

  24. JC

    “Tony” Should rethink his first comment and beg the editor to delete it.

    This:

    Fundamentally, money is not wealth, i.e. income producing assets, goods and services etc, but rather just a system for exchanging such.

    Tony, I won the lotto the other night totalling $107 million. I didn’t but work with me here. I do all that needs to be done and the lotto firm sends $107 million to my bank account the next day. That money, in my account, doesn’t make me super wealthy, unless I buy other assets? Stupid.

  25. John Constantine

    “6) I would like to end with a final point on the “growth imperative” of money, which generated a lot of discussion. I can offer many simple examples of a shrinking business (degrowth) that can generate a positive return on investment. It is worth less, of course, than if it were growing, but it is not worth zero. The issue with growth rates and debt is more about debt capacity than debt per se. All else equal, debt capacity goes up when growth rates are higher, and when interest rates are lower. The real issue, in my view, is that we have too much (interest-bearing) debt for the economic system and the planet to handle, and more than individuals and societies can handle. But today’s ultra-low real interest rates mitigate the gap. Mellor’s prescription for public money no doubt will be part of the solution when we finally come to grips with the mother of all debt write-downs we will one day no longer be able to avoid. When this day of reckoning will arrive (has been predicted for a long time) and how that will work continues to baffle my mind. For now, whether in Greece or the State of Illinois pension system, or with American student loans, we kick the can down the road, with unquantifiable human and ecological costs.”

    https://greattransition.org/roundtable/money-john-fullerton

  26. OldOzzie

    Homer’s Iliad: be aware of Greeks bearing great gifts

    MATTHEW WESTWOOD


    Homer in his great epic The Iliad sets out his theme in the opening line: the wrath of Achilles. Anger and other equally powerful emotions — pride, resentment, love, grief — are the motivational drivers of The Iliad’s 24 books, in episodes that describe swift-footed Achilles’s bitter dispute with King Agamemnon, and that drag us into the bloodiest, bone-crunching battles of the Trojan War.

    The Iliad is one of humanity’s oldest surviving texts, a cornerstone of the vast treasury of cultural achievements that we call civilisation. It’s a bit unfashionable these days to talk about self-improvement — away from the gym or Tidying Up — but this summer I have set myself the task of reading it. There was a gap in my cultural knowledge that needed filling.

    It’s no great hardship. On a trip to Greece some years ago, I loved reading The Odyssey while sailing — on a ferry, not quite like Odysseus — between the islands. In Turkey I’d read The Aeneid, Roman poet Virgil’s account of the Trojan War, while visiting the sacred grounds of Gallipoli and ancient Troy. These are virile, exciting stories, shimmering with the “glory that was Greece and the grandeur that was Rome”, to borrow Poe’s memorable words.

    I was inspired to take the Homeric exercise in anticipation of public readings of The Iliad that start this week at the Sydney Festival. Another prompt was the current debate about the teaching of classics in our universities, and ­especially the objectives of the Ramsay Centre for Western Civilisation. Given The Iliad is among the foundational texts of the Western canon, I reckon it’s something I should know.

    The Iliad’s antiquity is certainly reason to have familiarity with it: it’s a portal into the culture of ancient Greece in the 8th century BC. Indeed it can be forbiddingly strange, so distant are we from the poet, or poets, we call Homer. The gods who reside on Mount Olympus and meddle in human affairs, and glamorous figures such as Achilles and Hector, occupy a world so unlike our own. That is the nature of myth. And yet these characters, gods and men alike, are so recognisably human in their psychological makeup.

    Achilles may be a great warrior and leader of the Myrmidons, but we also see him as vengeful and proud, stricken with grief at the death of his friend Patroclus, driven to terrible violence in his slaying of Hector, and finally capable of showing his enemy compassion.

    There are also The Iliad’s myriad literary qualities. Character-driven narrative, practically invented by Homer, is a technique in the toolbox of every popular novelist or screenwriter. The ­poetic images — the “wine-dark sea”, the “rosy-fingered dawn” — speak to us across millennia. As a channel for mythology, The Iliad’s legendary stories and archetypes continue to exert a powerful force.

    Two recent examples demonstrate our culture’s fascination with it. English poet Alice Oswald in 2011 produced her own poem based on The Iliad called Memorial, a kind of monument in verse that honours the 215 named warriors who die in the tale. It was adapted for the stage by Brink Productions’ Chris Drummond and given its premiere at last year’s Adelaide Festival — a performance with music, some 200 people on stage, and Helen Morse as the outstanding narrator.

    Another is Ransom, David Malouf’s novelistic treatment of The Iliad’s final episodes, in which King Priam comes to Achilles to beg the warrior to stop the desecration of his son Hector’s body, and to allow him to take the body home. It is difficult to think of an ending in all of literature that inspires greater pity, and Malouf in his version handles it with magisterial skill.

    William Zappa has spent the past seven years adapting The Iliad as a performable text, relying on 17 different versions, from the rhyming couplets of Alexander Pope to the modern retelling by Robert Fagles. The actor, who has Greek heritage — Zappa is his mother’s Greek family name — has absorbed these various translations to produce his own version in iambic hexameter, with lines assigned to different characters as in a play.

    In the slightly abridged readings that start on Wednesday — leading to an all-day reading on Sunday — Zappa takes the part of Zeus, lord of the dark clouds. Heather Mitchell is Zeus’s wife, the white-armed, queenly Hera, and Blazey Best and Socratis Otto play other roles.

    Zappa so far has adapted 22 of the 24 books, guided by Elizabeth Minchin at the Australian National University. When complete, he hopes his Iliad may be published as text to be used in schools.

    The Iliad is not without its detractors. In modern terms, we might describe the less edifying conduct of its male protagonists as symptomatic of toxic masculinity. Oswald, in her version, wanted to avoid the valorisation of bloodshed that she saw in Homer and often in the teaching of him. French philosopher and mystic Simone Weil — the subject of another performance at the Sydney Festival, Kaija Saariaho’s oratorio La Passion de Simone — considered the true theme of The Iliad to be “force employed by man, force that enslaves man, force before which man’s flesh shrinks away”.

    Even the notion of the Western canon — to which The Iliad and The Odyssey are integral — is bitterly contested, inasmuch as it is assumed to exclude other literary or narrative traditions. The controversy over the Ramsay Centre, a battle as fierce as any on the Trojan plain, is in part a rejection of so-called “European supremacism” or the white man’s view of history. Leaving aside questions of academic independence, the attack on the centre is also an attack on the Western tradition.

    Those who genuinely love literature and the wide world of books surely find this perplexing. With the canon we have a reliable guide to the best that Western literature has to offer, starting with Homer and the Greek dramatists. That doesn’t rule out as unworthy the achievements of other cultures, whether India’s Mahabharata or the creation mythology of Australia’s first peoples, custodians of the world’s oldest surviving culture.

    To shun Homer — and with him Plato, Sophocles, Aristophanes and the rest — as politically incorrect relics of long ago is to be blind to their glories. And why deny the pleasure and deep learning that is to be had in reading works such as The Iliad, even if only to add substance to a critique of its undeniably patriarchal, shockingly violent world?

    It may be time to brush up your Homer. For a writer some 2800 years old, he remains essential reading.

  27. OldOzzie

    Apologies for above – wrong thread

  28. duncanm

    At first glance, the theory seems barmy.

    first glances, or impressions, are often the most accurate.

  29. Beachcomber

    This notion of completely unrestrained government spending as a solution to all economic woes was presented on ABC’s Planet America, by one of their favoured Democrat ‘advisers’ or ‘strategists’; all
    with the nodding, cooing approval of the ABC communard hosts.

  30. Tim Neilson

    Tony, I won the lotto the other night totalling $107 million. I didn’t but work with me here. I do all that needs to be done and the lotto firm sends $107 million to my bank account the next day. That money, in my account, doesn’t make me super wealthy, unless I buy other assets?

    Depends how far and how fast Occasional-Cortex and her soulmates can crash the value of the dollar. There’s essentially no lower limit to how far, as the Weimar Republic and Zimbabwe have demonstrated.

    Did you really not understand Tony’s point or were you just trolling?

    If the former, get a copy of “Restaurant at the End of the Universe” and read the passage where the passengers from the B Ark declare the leaf to be the currency of their new society.

    When stoner-level science fiction comedy is better economic analysis than the Financial Times we’re in big trouble. Maybe we are descended from the B Ark voyagers after all.

  31. Roger

    Philip Aldrick is Economics Editor of The Times

    An award wining financial journalist, he is.

  32. Dr Faustus

    One of the fun features of MMT is that government must act as employer of last resort – offering employment to all those who want to work but can’t find employment in the private sector. The theory has it that, when private demand for labour increases, government releases these goldfish back into the labor market – thus maintaining full employment and eliminating wage inflation.

    A moments reflection tells us this brave new swing workforce would tend to concentrate inexperience workers, or unemployable zombies. These zombies would need to be engaged in unproductive tasks to avoid crowding out the private sector and therefore would not acquire any useful skills (other than turning up to do mindless busy-work).

    This would obviously work well.

    .

  33. tombell

    sorry but the younguns, particularly the girlies, are in thrall to AOC.

  34. mh

    She has a head for economics:

    “It really is like high school orientation,” Ms. Ocasio-Cortez said. “It’s like you pick your committees the way you pick your courses. And people ask, like, little logistical things like, ‘where you going to live?’”

    No decision there yet, she said. “Honestly, I’ve been so focused on today that I’m not trying to count my chickens before they’re hatched.”

    Ms. Ocasio-Cortez said the transition period will be “very unusual, because I can’t really take a salary. I have three months without a salary before I’m a member of Congress. So, how do I get an apartment? Those little things are very real.” She said she saved money before leaving her job at the restaurant, and planned accordingly with her partner. “We’re kind of just dealing with the logistics of it day by day, but I’ve really been just kind of squirreling away and then hoping that gets me to January.”…

    https://www.nytimes.com/2018/11/07/nyregion/ocasio-cortez-congress-washington.html

  35. Jonesy

    The only entity on the planet that will be happy about the AOC plan is France and the EU. The French have long dreamt of a day when the US Dollar wasn’t the world currency. Their creation, the EU, would then thrive and inherit the Earth once the despised Americans lost their hegemony.

    It is simply too scary to contemplate the US EVER going down this path. However, the braindead millennial will look at that smooth cheer leader body and just blindly follow it into the abyss.

  36. Entropy

    the braindead millennial will look at that smooth cheer leader body and just blindly follow it into the abyss.

    The condition of man.

  37. Eyrie

    “Maybe we are descended from the B Ark voyagers after all.”
    There is a theory that we are descended from our ape like ancestors who could tolerate the ethanol in rotting fruit. So we are the descendants of drunken monkeys. Sounds about right. If you don’t believe it, look around.

  38. Dr Fred Lenin

    when a loaf of bread in America costs $450,000,000 US, will other countries be able to pay off their massive national debts in cheap US dollars ? dont worry soros wont let it happen , his fortune is in the USA .,be no good if a billion dollars only buys two loaves of bread and a pack of chewing gum .

  39. C.L.

    Indeed (somebody above).
    Fisk has now declared he is an Eminempty.©
    His rationale seems to be that when the left deficit-splurges they get all the political advantage while the deficit repairmen of the right (such as they are) only manage to budget their way out of office.

  40. Destroyer D69

    Occasional Cortex or Ossified Cortex?

  41. C.L.

    His rationale seems to be that when the left deficit-splurges they get all the political advantage while the deficit repairmen of the right (such as they are) only manage to budget their way out of office.

    In fact, this is also the rationale of of the Shortenwouldbeworsers. More broadly still, it is the actuating ‘principle’ and phony realpolitic of the entire Western right – or, rather, its legislative, office-holding wing. We waste money and do bad liberty-trashing things in order to moderate the far more extreme fiscal and ideological plans of the left. They then congratulate themselves for what they see as prudent and – when it involves marginalising and humiliating their own base – brave back burning. No no, Fisk. We must go on fighting the good fight.

  42. Neil

    Apparently MMTers believe that having a sovereign currency brings magical powers. In contrast countries like Greece who have the Euro do not have these magical powers that a sovereign currency can give.

  43. Whalehunt fun

    The conclusion is wrong. So long as the left are persecuted relentlessly; so vilified and beaten that they are cowed into silence fearful of the next brutalisation, then their beliefs matter not at all. They can believe anu nonsense and have no detrimental impact so long as they live quaking and cowering and silent.

  44. Dave in Marybrook

    I think we need to gift Aldrick with credulity here.
    His final para- effectively, pointing out that it’s not a new idea, just a new term- after pointing out the follies of the past?
    C’mon, we shouldn’t need emojis or the /sarc to spot wryness these days.

  45. Iampeter

    The looney left has found yet another economic theory to ruin us with

    This would be easier to read if you and many other cat regulars weren’t arguing in support of tariffs, for example.

    So, not sure who you think the “looney left” is, but a good long look in the mirror is probably long overdue.

  46. duncanm

    tombell
    #2913221, posted on January 21, 2019 at 2:19 pm

    sorry but the younguns, particularly the girlies, are in thrall to AOC.

    what is it with reasonable looking chicks with big teeth? NZ has this problem.

  47. Squirrel

    Grotesque and frightening as it may be (particularly when peddled by identity politicians with a certain appeal), it’s probably best for the nutjobs to be out and proud about this staff, rather than (as they more often do) basing unaffordable policies on such notions while simply talking publicly about fairness and equity etc. etc.

    This way, there might, just, be enough rational voters left to see it for what it is and, at least temper it if not completely stop it.

  48. mh

    JC
    #2913160, posted on January 21, 2019 at 1:23 pm
    Lol, The Pink Times is pushing Chartalism now and it’s calling it a new idea? FMD

    I think you are referring to the Financial Times, whereas this guy apparently is working for The Times.

    Remember the FT is the sensible one. The Financial Times Person of the Year 2018 was convicted insider trader George Soros.

  49. JC

    Explain, which “Times” was it?

  50. mh

    I’m sure it’s The Times which is now a Murdoch newspaper.

  51. mh

    Not sure if The Times and the Financial Times were ever sister papers, but they are not now.

  52. mh

    FT is now owned by Nikkei Inc.

    Never a sister paper to The Times.

  53. Faye:

    We have ordered our counterfeit money making machine for when the Left take over. It will go in the Laundry.

    You’re gonna need a bigger laundry.

  54. Sydney Boy

    I guess it could work in a completely closed economy. But economies are only semi-closed*. They trade with other economies – *with government interference.

  55. Richard Bender

    As this excellent post shows Steve’s mental faculties have not gone for good, is there any chance he could turn that sharp mind to President Trump?

  56. RobK

    JC,
    That money, in my account, doesn’t make me super wealthy, unless I buy other assets? 

    The lotto money is paid from a pool made of contributions to participate. Those contributions reflect real wealth exchanged for cash, which becomes the prize in the lotto. So that type of money is wealth, however if the presses print money without basis then surely Tony ‘s assertion is ultimately correct?

  57. Zatara

    Ocasio-Cortez is one of the most junior of 435 US congresscritters. One.

    Her opportunities to actually act on advancing any of her ridiculous views, while not nil, are damned close to it.

    Sooner than later she will cease being a peppy useful idiot, step on the wrong toes, and the Democrat ‘leadership’ will crush her into “keep your mouth shut and do what we tell you” sort of obedience.

  58. md

    … MMT sounds like that other MMT, the magic money tree, or Jeremy Corbyn’s “People’s QE” – the kind of thing Weimar Germany and Zimbabwe tried with devastating inflationary consequences. But that’s because we’re looking through the wrong end of the telescope….

    This cartoon says it all:
    https://rightedition.com/wp-content/uploads/2018/11/cartoon-2.png

    And perhaps this one, too:
    https://www.ac2news.com/wp-content/uploads/socialism-33-cc.jpg

  59. GD

    What economic accreditations does Alexandria “Sandy” Occasional-Cortex actually hold?

    She was the manager of a bar before her foray into politics.

  60. Win

    Is Ocasio-Cortez another media inflated left wing totalitarian puppet ?. Think Rudd. Why would the media give her prominent daily publicity for her loud aggressive utterances ,but no details on past personal life achievement s .

  61. miltonf

    Yes like ‘beto’ o rourke and so many others.

  62. Mitchell Porter

    Can someone with more economic nous than me, write a version of David Bowie’s “Modern Love”, only now it’s “Modern Money”?

  63. The BigBlueCat

    Sooner than later she will cease being a peppy useful idiot, step on the wrong toes, and the Democrat ‘leadership’ will crush her into “keep your mouth shut and do what we tell you” sort of obedience.

    Exactly. The left need their useful idiots – when public opinion turns against them, they will have their scapegoats. Up against the wall, Comrades! Same as it ever was ….

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