The basic notion of the "New" theory seems to be the logical conclusion of Keynesianism when applied to a pure fiat monetary system. The conclusion seems to be that the state has more economic power (totalitarian, really) than most people realize. The misleading element is that this realization is not a good thing. Any ideology that puts more power in the hands of the bureaucratic power elite/czars is bound to lead to economic destruction as well as the destruction of our personal liberties The Soviets had the same class of economic "geniuses" at the helm too, and look where it got them. Rationalization is not the same as an honest process of reasoning. Manipulation and redistribution are not the same as production.
Right -- another example of "operational realities" leading to potentially murky conclusions in terms of real world policy decisions. I'm also reminded of Keynesianism in the sense that Keynes' theories, to the degree they hold technical merit, are designed to be applied by wise, prudent, self-restrained political leaders (i.e. the kind that don't actually exist).
This is a good article, not sure if anyone posted it. From Mercenarytrader.com, highly critical of MMT: http://mercenarytrader.com/2010/12/weekender-the-trouble-with-modern-monetary-theory-mmt/
Monetary manipulation is the problem, not the solution. This disconnect between savings and productive investment is itself one of the major problems of our economy. If has forced the general public to speculate in order to (attempt) earn a return, which as been a disaster. It causes funny money (hot sector) bubbles as the low-cost capital seeks a home. When the bubble pops all the debt tied to inflated asset prices causes the supposed "deflationary" spiral. Perhaps worst of all it puts productive assets in the hands of "hot money cowboys" who take advantage of arbitrage relationships (created by the artificially low cost of capital) rather than genuine productivity growth. Yet now we are supposed to believe that a better technical understanding of the monetary system has lead to some great new insight. I say, BS!! Supposedly if we all fully understand that the government does not need to tax or borrow in order to spend, all our problems will be over. Sure! These monetary gurus need to get out of their heads and go tour a semiconductor manufacturing facility, a Costco distribution center, Amazon's control facilities, a thriving mid-sized business, a small start up... In other words they need to get back in touch with REAL PRODUCTIVITY growth not bogus, zero sum manipulations. The real solution it to get these monetary/financial hacks out from behind the drivers wheel, and get some leaders in who understand the REAL economy.
I debated a chartalist on his claim that 'QE is a non-event' that the Fed would fail to create inflation and the solution was expansionary fiscal policies. I cracked his arguments one by one(he started with the typical 'the money will just endup as excess reserves at the Fed, which is not what the data from QE1 indicates at all) he got cornered and endup having to build his whole defense on the idea that 'inflation expectations dont matter for actual inflation'(After I pointed out that the Fed was quite sucessful in bumping expectations in both QE1 and 2), at that point I gave up as I realized I wasn't dealing with a sane healthy individual
I was under the impression from reading your posts that we were ALREADY past the pt 3 for this depression. It seems that one actually doesnt know the exact timing but does know the order of events.....probably fanning can't occur indefinitely but it seems to me that it sure can go on for a long time?
To put a little more exactitude on this progression, even before the inverted saucer tangent is reached, the faster fractals on the Depression go to short dominance on their RTL's. At the niddle of the inverted saucer there is the matter of lateral channels. After those, the short dominance sets in more and more. With regard to fanning, that happens during the early part of the inverted suacer and after the Bull retrace od the depression failed to be able to traverse to the LTL of the Bull retrace. Bull retrace is a "non dominant expression". MMT, etc, was displaced when lack of integrity was allowed to happen by practicioners. As it turned out the field of Economics died as a rational process when the financial industry "bought out" tha remaining talent for autoritative papers that were used in "sales campaigns". Greenspan is a super example of how an "authority" bullshitted every one for consulting income (more as a paid speaker it turned out) Obviously, this is a fun period for intraday and position trading. AND it will continue to get more and more rewarding. One of the best movie comedies associated with this period and the beginning of the Depression (plus two years) is "Inside Job". You can't expect the movie producers to see this Depression from a front running orientation or perspective. I do not think anyone would pay anyone to tell it like it is on a current contemporary basis. The Financial Industry "ended" the Executive and lgislative functionality of government. Kagan decided to not take income form speaking for a full year after her appointment. I can remmber "ghosting" for Ted Kennedy when I was at EOP; he didn't get it that I had to produce for EOP at a high rate of demand. Most of my efforts were red felt type of stuff. lol.... Things are way past SNAFU..... The VE's end when values become asymptotic to the real global value at which Econometric substitution is equal to or greater than the sum of direct, indirect and induced. There are no reliable white papers possible at this point. Information is not possible to obtain.