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:( its become clear to me you're not having this conversation in good faith. I apologize that I wasted your time. FWIW, I do not own any BTC or other crypto co

:( its become clear to me you're not having this conversation in good faith. I apologize that I wasted your time. FWIW, I do not own any BTC or other crypto coins. P.S. I highly recommend you research MMT. I think you'll find that no-one (including the most experienced economists) understands the details of how the emergent property works, they only understand that it works.

lottin 6y ago
Re-reading you comments, I think you might be confused with regards to what MMT is. MMT is a novel monetary theory, it's definitely not the standard monetary theory, and it's not widely accepted by economists. The standard theory of money is the Quantity Theory of Money, which has been re-discovered many times since the ancient times. Why you think MMT is important in this discussion, I don't know.
- yazaddaruvala 6y ago
  > Why you think MMT is important in this discussion, I don't know. Because over the last decade the US has been quietly transitioning to the MMT mental model. MMT is how we got out of the 2008 recession and also how we are funding both the pandemic stimulus packages (in 2020 and again in 2021). The inflation we previously discussed in this thread is, in my understanding, a direct consequence of MMT.
  - lottin 6y ago
    What is the MMT mental model? It seems to me that you're under the impression that MMT is some kind of monetary policy, when it is not. Monetary policy along with fiscal policy are the two major counter-cyclical policies used by governments since the 1930s. MMT is an economic theory, and is much more recent than that.
    - yazaddaruvala 6y ago
      MMT is actively being leveraged for fiscal/monetary policy in the US, and has been since 2008 (by both Democrat and Republican POTUS and Congress). > "Congress has been showing us — in practice if not in its rhetoric – exactly how M.M.T. works: It committed trillions of dollars this spring that in the conventional economic sense it did not ‘have.’ It didn’t raise taxes or borrow from China to come up with dollars to support our ailing economy. Instead, lawmakers simply voted to pass spending bills, which effectively ordered up trillions of dollars from the government’s bank, the Federal Reserve. In reality, that’s how all government spending is paid for." [0] > When President Trump signed the $2 trillion CARES Act into law, the federal government sold bonds to fund the new spending, expanding the government debt. However, the largest purchaser of those bonds was the Fed. ... As a currency issuer, the federal government can create more money to buy Treasuries and pay off its debts, making an involuntary default impossible. Under the Fed’s jurisdiction, it could purchase all U.S. Treasuries tomorrow and retire the entire U.S. federal debt, something Japan has already done with nearly half of its debt. ... Is the Fed’s financing of the debt created by the CARES Act fueling inflation? Not quite. The annual U.S. inflation rate currently stands at around one percent, half of the Fed’s two percent target. In fact, over the past decade, the Fed has struggled to increase the U.S. inflation rate. There actually is not enough spending (aggregate demand) in the U.S. economy to hit the Fed’s inflation goal. [2] > Modern Monetary Theory (MMT) is alive and well in the United States. While MMT is derided by mainstream economists, the federal government is practicing MMT. From running massive federal government deficits, to the operations of the Federal Open Market Committee (FOMC) by the Federal Reserve Bank, the United States is practicing a policy of MMT that is currently underpinning the economy of the United States. ... The U.S. Federal Reserve (Fed) began its own form of quantitative easing (QE1) on November 25, 2008 by purchasing $600 billion in agency mortgage-backed securities (MBS) and agency debt. [3] > While MMT may seem like a purely theoretical construct, it should be recognized that many governments, including the U.S. government, are effectively already putting MMT into practice. [4] If you're still not convinced that the US is actively applying MMT in practice thats ok, lets wait and find out more. Meanwhile, thanks for catalyzing my motivation to research all of this! :) [0] https://www.nytimes.com/2020/06/09/opinion/us-deficit-coronavirus.html https://www.nytimes.com/2020/06/09/opinion/us-deficit-corona... [1] https://www.cnbc.com/2020/04/29/op-ed-pandemic-moves-modern-monetary-theory-from-the-fringes-to-actual-us-policy.html https://www.cnbc.com/2020/04/29/op-ed-pandemic-moves-modern-... [2] https://policy-perspectives.org/2020/10/23/modern-monetary-theory-can-the-u-s-print-its-way-to-prosperity/ https://policy-perspectives.org/2020/10/23/modern-monetary-t... [3] https://intpolicydigest.org/the-u-s-has-embraced-modern-monetary-theory-in-fact-if-not-in-name/ https://intpolicydigest.org/the-u-s-has-embraced-modern-mone... [4] https://www.fa-mag.com/news/america-is-on-the-road-to-mmt-58075.html?print https://www.fa-mag.com/news/america-is-on-the-road-to-mmt-58...

lottin 6y ago

Re-reading you comments, I think you might be confused with regards to what MMT is. MMT is a novel monetary theory, it's definitely not the standard monetary theory, and it's not widely accepted by economists. The standard theory of money is the Quantity Theory of Money, which has been re-discovered many times since the ancient times. Why you think MMT is important in this discussion, I don't know.

yazaddaruvala 6y ago
> Why you think MMT is important in this discussion, I don't know. Because over the last decade the US has been quietly transitioning to the MMT mental model. MMT is how we got out of the 2008 recession and also how we are funding both the pandemic stimulus packages (in 2020 and again in 2021). The inflation we previously discussed in this thread is, in my understanding, a direct consequence of MMT.
- lottin 6y ago
  What is the MMT mental model? It seems to me that you're under the impression that MMT is some kind of monetary policy, when it is not. Monetary policy along with fiscal policy are the two major counter-cyclical policies used by governments since the 1930s. MMT is an economic theory, and is much more recent than that.
  - yazaddaruvala 6y ago
    MMT is actively being leveraged for fiscal/monetary policy in the US, and has been since 2008 (by both Democrat and Republican POTUS and Congress). > "Congress has been showing us — in practice if not in its rhetoric – exactly how M.M.T. works: It committed trillions of dollars this spring that in the conventional economic sense it did not ‘have.’ It didn’t raise taxes or borrow from China to come up with dollars to support our ailing economy. Instead, lawmakers simply voted to pass spending bills, which effectively ordered up trillions of dollars from the government’s bank, the Federal Reserve. In reality, that’s how all government spending is paid for." [0] > When President Trump signed the $2 trillion CARES Act into law, the federal government sold bonds to fund the new spending, expanding the government debt. However, the largest purchaser of those bonds was the Fed. ... As a currency issuer, the federal government can create more money to buy Treasuries and pay off its debts, making an involuntary default impossible. Under the Fed’s jurisdiction, it could purchase all U.S. Treasuries tomorrow and retire the entire U.S. federal debt, something Japan has already done with nearly half of its debt. ... Is the Fed’s financing of the debt created by the CARES Act fueling inflation? Not quite. The annual U.S. inflation rate currently stands at around one percent, half of the Fed’s two percent target. In fact, over the past decade, the Fed has struggled to increase the U.S. inflation rate. There actually is not enough spending (aggregate demand) in the U.S. economy to hit the Fed’s inflation goal. [2] > Modern Monetary Theory (MMT) is alive and well in the United States. While MMT is derided by mainstream economists, the federal government is practicing MMT. From running massive federal government deficits, to the operations of the Federal Open Market Committee (FOMC) by the Federal Reserve Bank, the United States is practicing a policy of MMT that is currently underpinning the economy of the United States. ... The U.S. Federal Reserve (Fed) began its own form of quantitative easing (QE1) on November 25, 2008 by purchasing $600 billion in agency mortgage-backed securities (MBS) and agency debt. [3] > While MMT may seem like a purely theoretical construct, it should be recognized that many governments, including the U.S. government, are effectively already putting MMT into practice. [4] If you're still not convinced that the US is actively applying MMT in practice thats ok, lets wait and find out more. Meanwhile, thanks for catalyzing my motivation to research all of this! :) [0] https://www.nytimes.com/2020/06/09/opinion/us-deficit-coronavirus.html https://www.nytimes.com/2020/06/09/opinion/us-deficit-corona... [1] https://www.cnbc.com/2020/04/29/op-ed-pandemic-moves-modern-monetary-theory-from-the-fringes-to-actual-us-policy.html https://www.cnbc.com/2020/04/29/op-ed-pandemic-moves-modern-... [2] https://policy-perspectives.org/2020/10/23/modern-monetary-theory-can-the-u-s-print-its-way-to-prosperity/ https://policy-perspectives.org/2020/10/23/modern-monetary-t... [3] https://intpolicydigest.org/the-u-s-has-embraced-modern-monetary-theory-in-fact-if-not-in-name/ https://intpolicydigest.org/the-u-s-has-embraced-modern-mone... [4] https://www.fa-mag.com/news/america-is-on-the-road-to-mmt-58075.html?print https://www.fa-mag.com/news/america-is-on-the-road-to-mmt-58...