QE was successful because they managed to recapitalize the system without Inflation ? LOL House Prices doubling in 9 years wasn't Inflation right, QE's whole purpose is to Inflate assets, it's not rocket science... You are increasing the money supply to the banks for them to loan it out to anybody at very low interest rates, how would it not create Inflation ?
MMT can only work for a brief period in a heavily consuming based economy like the US... It would serve itself best through State Owned Construction, rebuilding bridges and all the broken down community's... In the end, it leads to Socialism at 100 % but Central Banks are making sure of that already... Japan is already a Hybrid Socialist/Capitalist Economy, once Automation and 3D Printing take over, then they will regret DEARLY killing there banking system, the second there exports drop, they will feel it... They won't have low Inflation problem in Japan for much longer, trust me on this, gonna be the opposite in not so distant future
Oh sorry, I meant the inflation they track which is "the type of inflation that will cause plebs to revolt". Asset inflation, 100% true. Good call.
https://www.bloomberg.com/news/arti...e-for-capitalism-is-quite-simple-adapt-or-die They’re pushing a reinvention that includes minimum global taxes and higher levies on tech giants like Amazon and Facebook. There’s echoes of that in the self-proclaimed democratic socialists in the U.S. and firebrand Congresswoman Alexandria Ocasio-Cortez, who last week said “capitalism is irredeemable.” “If we don’t invent a new capitalism, absurd economic solutions will win over and sweep us straight into recession,’’ Le Maire said in an interview late last month. Nothing is ever mentioned why real Inflation is far outpacing wage growth, QE! Capitalism isn't the issue, it's the inequality QE brings... QE is the last line of defense, not some permanent tool. Europe has a push of Socialism now too. Irony is they blame the Chinese at the end of article, which are going into a 10 year slump of misery and likely to be irrelevant for quite some time, maybe permanently... Wonder who they will blame in few years when China is back needing IMF Loans to survive, the Socialist Wave across the world is real and gaining serious momentum... Hopefully CB's get there act together, QE this recession then slowly pullback from constant money injections. The world has to accept slower growth, we can't keep this pace of insanity without tipping the economic balance
This guy is pushing the idea of a "freedom dividend" - in effect, new money the government creates directly on behalf of the people. Imagine if this idea takes root and the people keep demanding a reduction in government discretionary spending to be replaced by by such distributions. Would what Yang proposes work? My inclination is no. Too much power to be lost in such an arrangement. https://www.yang2020.com/
UBI was always the next step in the western CB's madness... QE + UBI is technically the trader's dream, but US society will be fucked through insane Inflation. Assets will hit the moon in literally no time
I don't agree with you regarding UBI. A small amount of inflation OR forced confiscation is necessary to force people to invest their money into assets (theoretically). This keeps the economy humming and prevents hoarding. If a UBI was supported purely through magic money, that would be a better use of the Federal reserve than QE, and would likely support all citizens, not just the connected ones.
Yea but within few years period it would lose it's entire fizzle and prices on everything would adjust to new purchasing power, nullifying it's effect but making life more expensive for future generations who did not ride the asset Inflation wave. Then your society becomes stuck in a government dependence environment but you are still back with the initial problems of debt servicing towards end of cycle What I am saying is UBI is useless as a permanent tool and can only be temporary... I believe between QE and UBI, UBI for a few years is a better recovery tool then QE for a few years considering corporate debt levels already. UBI would be more for direct consuming, QE is steroids for corporations. Like QE, once it gets introduced, it will always come back to the table. Tax cuts for low-middle class households would work well and doesn't Inflate much, the psychological effect of saving an extra 4k a year on taxes, is much better then receiving 1500 every quarter. Tax cuts go to savings or essential consuming for those tax brackets, UBI would be straight consuming Once markets adjust to new purchasing power, stop of liquidity will cause recession like effects, countering it's initial purpose... Good point you made about UBI being better then QE for the US, I think it is too