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Sorry, but it's a doomsayer, tinfoil hatters' failure to understand MMT. Here's one of Bernie Sanders' economic advisers explaining it: https://youtu.be/5baKgv

Sorry, but it's a doomsayer, tinfoil hatters' failure to understand MMT. Here's one of Bernie Sanders' economic advisers explaining it: https://youtu.be/5baKgv7Zl5g https://youtu.be/5baKgv7Zl5g http://www.usdebtclock.org http://www.usdebtclock.org

C1sc0cat 8y ago
Exactly its how expensive the debt is that's the main issue
- time-domain0 8y ago
  According to the chicken-littles, the Fed can't raise interest rates or supposedly the bond market will collapse and then supposedly the stock market will tank because corporations have over-extended themselves based on complacency about cheap money/QE making non-capital asset investments rather than capital investment business expansion. Cats will live with dogs, and the Stay Puft Marshmallow Man will eat your children.
syntaxing 8y ago
NPR's explanation is much more digestible: https://www.npr.org/sections/money/2018/09/26/651948323/episode-866-modern-monetary-theory https://www.npr.org/sections/money/2018/09/26/651948323/epis...
jasode 8y ago
>, tinfoil hatters' failure to understand MMT. I wasn't the one who downvoted you but as a fyi... this particular article is about corporate debt. MMT is about government debt. When non-government entities such as businesses and consumers take on too much debt that they can't service, bad economic things happen.
- time-domain0 8y ago
  Obviously, Sherlock. The govt with the Fed are (or should be, if things don't spiral out of control) the economic governors. You can't talk about either one in isolation because they are symbiotic, not mythologically-utopian, hermetically-closed model boxes that can exist without the other. The Fed will be pressured to reduce interest rates because corporations are playing Russian roulette too-big-to-fail brinksmanship and will expect a bailout as per usual.. an action the majority undertake will always be excused in a democracy because of political pressure.
  - ilikeatari 8y ago
    But can we be kinder to each-other in these discussions?
  - deleted 8y ago
    [deleted]
- zozbot123 8y ago
  Heck, when government entities take on too much debt, the bond vigilantes get involved, interest rates spike upwards and bad economic things happen! Inflating your debt away will just save you from outright sovereign default - it won't save you from the bond vigilantes and from spiking nominal rates.
  - stephen_g 8y ago
    Yes, clearly, just like they did in Japan. Oh, wait, no, Japan only proved that the Government is fully in control of the bond market. The private sector wants Government bonds. If they won’t buy all of them at the interest rate the Government wants to sell them for, there’s no practical reason they can’t just sell excess bonds to the central bank (except for silly policy in some countries).
- stephen_g 8y ago
  MMT still has plenty to say about the private sector, as well as non-monetarily sovereign monetary systems, etc. It’s the common fiscal policy recommendations informed by MMT that mostly have to do with Government debt. It’s important to separate the theory from the policy - MMT is way more than just overt-money financing. But yeah, the parent comment is confused, corporate debt (and private debt in general) is the real looming threat to worry about in a currency-issuing country that only issues bonds denominated in their own currency (such as the US) - not the Government deficit or debt.
gadders 8y ago
>>Here's one of Bernie Sanders' economic advisers explaining it Let me stop you right there.

C1sc0cat 8y ago

Exactly its how expensive the debt is that's the main issue

time-domain0 8y ago
According to the chicken-littles, the Fed can't raise interest rates or supposedly the bond market will collapse and then supposedly the stock market will tank because corporations have over-extended themselves based on complacency about cheap money/QE making non-capital asset investments rather than capital investment business expansion. Cats will live with dogs, and the Stay Puft Marshmallow Man will eat your children.

syntaxing 8y ago

NPR's explanation is much more digestible: https://www.npr.org/sections/money/2018/09/26/651948323/episode-866-modern-monetary-theory https://www.npr.org/sections/money/2018/09/26/651948323/epis...

jasode 8y ago

>, tinfoil hatters' failure to understand MMT. I wasn't the one who downvoted you but as a fyi... this particular article is about corporate debt. MMT is about government debt. When non-government entities such as businesses and consumers take on too much debt that they can't service, bad economic things happen.

time-domain0 8y ago
Obviously, Sherlock. The govt with the Fed are (or should be, if things don't spiral out of control) the economic governors. You can't talk about either one in isolation because they are symbiotic, not mythologically-utopian, hermetically-closed model boxes that can exist without the other. The Fed will be pressured to reduce interest rates because corporations are playing Russian roulette too-big-to-fail brinksmanship and will expect a bailout as per usual.. an action the majority undertake will always be excused in a democracy because of political pressure.
- ilikeatari 8y ago
  But can we be kinder to each-other in these discussions?
- deleted 8y ago
  [deleted]
zozbot123 8y ago
Heck, when government entities take on too much debt, the bond vigilantes get involved, interest rates spike upwards and bad economic things happen! Inflating your debt away will just save you from outright sovereign default - it won't save you from the bond vigilantes and from spiking nominal rates.
- stephen_g 8y ago
  Yes, clearly, just like they did in Japan. Oh, wait, no, Japan only proved that the Government is fully in control of the bond market. The private sector wants Government bonds. If they won’t buy all of them at the interest rate the Government wants to sell them for, there’s no practical reason they can’t just sell excess bonds to the central bank (except for silly policy in some countries).
stephen_g 8y ago
MMT still has plenty to say about the private sector, as well as non-monetarily sovereign monetary systems, etc. It’s the common fiscal policy recommendations informed by MMT that mostly have to do with Government debt. It’s important to separate the theory from the policy - MMT is way more than just overt-money financing. But yeah, the parent comment is confused, corporate debt (and private debt in general) is the real looming threat to worry about in a currency-issuing country that only issues bonds denominated in their own currency (such as the US) - not the Government deficit or debt.

gadders 8y ago

>>Here's one of Bernie Sanders' economic advisers explaining it Let me stop you right there.