An MMT site bringing you dogma-free economics without the pleadings of self interest
Mike, this seems interesting. Could you please redo it without the interference from the TV(?) sports program in the background? Thanks! It's impossible to hear your words clearly. Merry Christmas!
Interesting that policymakers don't get this (or pretend not to). And that they had so little foresight about bubbles and genuinely usustainable policies and blatant fraud.And yet, they are so far ahead of the game when it comes assessing the possible threats, perceived or otherwise, that emanate from the justifiable protest from those who have suffered as a result of such policies/fraud. The authoritarian moves of governments like the US, Argentina and all the rest are as frightening as they are vulgar. Far be it for the unemployed and disenfranchised to question their predicament.I am the eye in the sky, looking at you-u-u......
Wasabi,I don't hear any background noise? Merry Christmas to you, too!-Mike
Mike -- These videos are a Great Idea. And there is progress. I am seeing more references to our ability to issue all the dollars we need for paying government liabilities. People seem to be slowly getting it.
the american debt crisis is advertising on this site. it says as a taxpayer that my portion is 130000.
Mike,Along with this, one more item has to be made clear. Why is China doing this? Knowing full well that by hanging on to the dollars, the value of its dollar holdings is reducing each day because of inflation. What is China gaining by this?The answer IMO is that it allows its population to be employed and fed. Its hold down the lid on unrest and dissidence. It has allowed the Chinese economy a stepping stone into a better future for itself.At some point, the US workforce will have to return the favor, when the dollars return, and things will come back into a balance.
Clonal:Knowing full well that by hanging on to the dollars, the value of its dollar holdings is reducing each day because of inflation. China doesn't hold dollar bills, it holds treasuries. You wouldn't have made real money except rarely, but overall Treasuries have had a positive real interest rate. So China isn't really crazy. They have been a decent store of value. Basically because as a famous half-American said, the US always does the right thing, after trying everything else. What is crazy is ever running your economy below full employment. Currently, the US is trying this crazy thing, not China.
Holding dollar assets keep the value of the yuan down.
Anonymous,That keeping Dollar assets keeps the Yuan down is an obvious fact. But why would China want to keep the Yuan down? That is the question. Exports are wealth going out of the door. Exports are useless unless you need something that your domestic economy cannot produce. So why is China intent on being a net exporter? That was the real question I was trying to answer.Exporting your wealth is really an act of "desperation," as opposed to being an act of "virtue."
What happens when the Asians grow weary of working to make the rest of the world rich with the fruits of their labor? We can setup community college retraining programs for all the hedge fund managers and bond salesman to learn to produce the things that the Chinese no longer want to?
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