Recent content by piezoe

Sadly, there is no education without effort. Supporting arguments you ask for can be found here: L. Randall Wray, "Understanding Modern Money" The original is out of print but I think Wray has a newer addition under a revised title (see Amazon). The Introductory Chapters contain one of the...

Of course the aggregate of deficits grows. Trying to understand why the aggregate grows, and MUST grow, is one of the points of our discussion here. Once this sinks in with each one of us we will stop talking past each another. Now I see real light at the end of this long dark tunnel of...

This is of course what we read and are told by politicians over and over. It will take many years for this to be corrected. What we read was correct many years ago. It is wrong today however, because we no longer borrow from the private sector to cover deficit spending, and the U.S. government...

I like the first part of your post, sort of, but not the second part. My opinion is that we should be very much concerned about the rate at which the aggregate deficit grows. Which is the same as saying we need to be concerned about the total amount of money in the private sector and its...

Until I have time to get back to these other folks, here is a chapter heading I recalled having seen in Stephanie Kelton's (formally Bell) book entitled "The Deficit Myth." I had the book in my library so I looked it up this am. Apparently at least one person agrees with me! from her...

Let me get back to you on this.

yes, thank you. I have intended to reply to ZG. Just didn't have time yesterday.

With regard to the historical origins of MMT, the name Modern Money Theory has only been used for the past 3 decades or so. The name MMT it is often attributed to Warren Mosler, who called it "Modern Monetary Theory". However the money aspects of it were fully understood by the 1980s at the...

I am not certain I would agree. The empirical evidence to refute MMT's claims may not be limited, as claimed above, rather it might be non-existent. This could explain why you haven't sited any evidence that would refute the basic tenets of MMT economics.

https://www.pbs.org/wgbh/americanexperience/features/rushmore-sioux/

That's absurd. I'm sure you realize it's absurd.

are you going to tell us "when"? :D In recent decades, Japan reduced, by about half, its outstanding JGBs, i.e., it converted them to money in its non-interest paying form. It did not raise taxes or cut spending to do this. In other words, it treated those JGB's as ersatz debt. (see my long...

Here is something that may help some to understand the difference between real debt and the ersatz debt of the United States government. Real Debt requires a non-trivial expenditure of time and energy to repay it. The ersatz debt of the United States, on the other hand, requires no significant...

Your parents confused, just as mine did, their finances with that of governments. Eventually, reality triumphs over fiction's beguiling seduction.

I am intrigued by your sentence above. After ~15 years of concentrated study of the work of the MMT economists I have finally plumbed down to its essence: All the transactional money we use in the private sector comes from deficits. "Wealth" is too broad a word here, but if we bone- headedly...