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Reagan showed that deficits don't matter.

I attend university in The Netherlands so my experience may differ significantly from those that attended university in America. However, media and politicians usually criticize the Dutch university system for the same reasons. Actually attending university I can conclude that this type of...

Anyone who's been to North Africa would know that the place is bustling with small merchants. They buy a small cart and sell fruits and vegetables. If they manage to save some money after the extortion fees by local policemen they can then purchase a license to sell bottled water to tourists or...

I'm kind of disappointed that people try to render the choice of going to college as the result of "dreaming" or some other, irrational cause. Individuals may make irrational choices but when dealing with categories of very large numbers of people those irrational choices even out. When...

The main problem is that wages as a share of GDP have been trending down since the early 80s. This lead to an economic system where individuals take on large amounts of debt in order to make up for their loss in purchasing power. Student loans are a symptom of this trend. So why do young...

Only speculators that buy up the physical commodities and storage them are able to drive up prices. Speculators trading in futures, or "pure speculators" as the FAO director calls them, have no net effect on prices as they close out all positions before the future expires.

I get it, you've invested alot in a certain economic paradigm. You've invested enough to stick with it even when the facts and numbers don't add up with your believes. Japan has had 0% interest rates for years, along with government borrowing and spending. The result: deflation. Your paradigm...

I'm really annoyed by all these worthless articles that push austerity measures and give people false fears on sovereign default. Japan's economic policy has been a disaster. While deflation means falling prices it also means falling wages. Wages in Japan have fallen faster than prices which...

The US government can declare dollars into existence. Let there be dollars... and *poof* enough dollars exist to service an infinite amount of debt. Debt is not issued to finance the Federal Government. In fact the government can continue to deficit spend without issuing debt at all. Why is...

Speculators perform a function that has public benifit: they take on the risk that producers want to offset. Speculation can become 'excessive' when a large quanitity of the output is bought up and placed in silos and warehouses as a hoard. Producers will have little need to offset their risk as...

At F you exit on non-dominant and feedback to A. From A you move to B or C. What you missed is that from here you re-enter if and only if there's an indication that dominant volume is returning. This means that PASS-FAIL-PASS-FAIL is still not a possibility as there should be other nodes in...

The Doji test has two possible outcomes PASS, FAIL. When price moves through or beyond the open of the bar the outcome is PASS. You can't go back to mark it as FAIL once you've marked it as PASS because in any case price has moved through the open of the bar. In other words, the PASS sticks. Now...

I noticed from your log that you misunderstood the pass/fail logic of the doji test. A Pass-Fail-Pass-Fail sequence is not possible. Either it moves through the open and it's Pass or by bar end it has failed to move through the open and it's Fail. You don't keep on running the test when the...

darkhorse, I'm glad to see that you've adopted some of the technical observations that MMT makes into your own framework. I do think your critique of MMT is mostly caricature though. MMT does not rely on magic. In fact, what MMT points out is that classical economics needs to assume the...

Capital is currently chasing emerging markets because that's where economic growth is highest. Because those economies are a lot smaller in size their ability to absorb that capital is limited. China is considering implementing capital controls, which is pretty much pulling out the "nuclear...

darkhorse, please take note that the discussion is shifting towards the point where MMT ends and political theory begins. First of all, MMT in no way entails the degeneration into a fascist style regime. This is just a dramatization on your part and no one will take it seriously. The aim of...

This is a really bad article. To summerize the article's critique on MMT: Technically the US government can't go bankrupt, but effectively it can when enough people shift their assets out of dollars and only convert back into dollars at the point of transaction (ie paying taxes). This destroys...

I understood what you meant with immunization and how you use it. My post tried to contrast what you're trying to do locally, teaching others to use pool extraction to immunize themselves economically, to what economic policy is doing nationally. Economic policy on the national level works to...

The American economy seems to have found an inflation sink by maintaining a high un(der)employment rate. The idea behind the current economic policy is that by immunizing financial companies and large corporations the American economy can continue growing, but only if this means that a large...

intradaybill, why do you think that the bailout funds in '08 and '09 were provided by the Federal government and not by the Federal Reserve? The Fed can create bank reserves by buying up government bonds and distressed assets in the financial system. They're like the government in that...