dagblog - Comments for "Seven Deadly Innocent Frauds of Economic Policy"

Good. There has been too

trkingmomoe — Thu, 16 Jun 2011 01:04:54 +0000

In reply to Oh I cross posted it on FDL

Good. There has been too much one sided Milton Freedman idiology in the media. Just reading the paper made it easier to for me to absorb what D. Coates was explaining in his latest blog.

I am going to FDL to read the comments. Should be interesting.

MMT, formerly known as

EmmaZahn — Thu, 16 Jun 2011 00:18:49 +0000

In reply to Seven Deadly Innocent Frauds of Economic Policy

MMT, formerly known as Chartalism, is tantalizing and an accurate description of how money flows but I believe Mosler, MItchell et al are wrong to entice people to the theory with the notions like:

Fact:
Federal government spending is in no case operationally constrained by revenues, meaning thatthere is no “solvency risk.” In other words, the federal government can always make any and all payments in its own currency, no matter how large the deficit is, or how few taxes it collects.

Key phrase there is 'solvency risk'. Sure a government that owes debt in its own currency can hyperinflate itself out but then what happens? The 'full faith and credit' will no longer have quite the same cachet as before.

The other notion that troubles me is the specious use of bookkeeping jargon like debits and credits, stocks and flows, etc. to make it all seem okay because everything balances. Balancing is what all books do if they are done correctly whether they show profits, losses or break evens.

Now with this book Mosler adds more specious notions to the mix because he has 40 years experience in the finance and economic realm. Doing what?

I have been anticipating an escalation of the money wars. The fall of 2008 bruised the Federal Reserve Bank's reputation and encouraged the gold bugs like Ron Paul and the Chartalists like Mosler and Mitchell. Those who think there should be a limited amount of money and those who think should be none. Both wrong in my opinion but if I had to pick, I would go with the MMTs.

More later, hopefully.

Oh I cross posted it on FDL

cmaukonen — Wed, 15 Jun 2011 23:51:29 +0000

In reply to I am glad you read it. I

Oh I cross posted it on FDL and somebody siad they tweeted it. I have never been treeted before.

You are very welcome. After

cmaukonen — Wed, 15 Jun 2011 23:50:11 +0000

In reply to I am glad you read it. I

You are very welcome. After reading this I find it amazing that those in Washington simply do not understand that you really cannot run the country like you tun a business finance wise. They are apples and oranges. And I think this has a lot to do with why things are so bad.

I am glad you read it. I

trkingmomoe — Wed, 15 Jun 2011 22:22:59 +0000

In reply to Seven Deadly Innocent Frauds of Economic Policy

I am glad you read it. I spent all day yesterday reading it. It gives a simple explaination as to how our fiat money system works. It caught my eye because I remembered Charley Rose had J Kenneth Galbraith on his show talking about "Innocent Frauds" before he died. I was also facinated with Krugman a couple of weeks ago on Charley Rose saying there was no real reason for us to be in this great recession except for what was going on in politicans heads.

Thanks for passing this on to dag.

Nice!Brings up an old song

Richard Day — Wed, 15 Jun 2011 21:37:49 +0000

In reply to Seven Deadly Innocent Frauds of Economic Policy

Nice!

Brings up an old song concerning the AFFECTS of faulty thinkin!