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Comment on Modern Monetary Theory vs the Fiscal Cliff by Platinum Coin Seigniorage = Policy Space « Arliss Bunny's Blog

Platinum Coin Seigniorage = Policy Space « Arliss Bunny's Blog — Mon, 14 Jan 2013 04:42:31 +0000

[...] figured this whole thing out before. Part of this is because, as I have said, almost all of the people currently staffing those positions learned monetary policy at a time when [...]

Comment on Modern Monetary Theory vs the Fiscal Cliff by arlissbunny

arlissbunny — Tue, 08 Jan 2013 08:20:13 +0000

My apologies for this long delayed response. Holidays, visiting family and the end of year books for my manufacturing company have all impinged on my sanity/sleep/spare time. I understand your question and I THINK I could explain it but I am just a physicist who got interested in economics recently. The real pros live at places like Bill Mitchell’s Billy Blog and Stephanie Kelton’s New Economics Prospectives Blog. I really, REALLY recommend that you go there and ask the very same question. I don’t want to give an answer that would in any way be confusing or incorrect. If you can’t get an answer there, come back and I promise to do my best not to be too obtuse.

Comment on Modern Monetary Theory vs the Fiscal Cliff by arlissbunny

arlissbunny — Tue, 08 Jan 2013 08:11:17 +0000

Apologies. I have been busy with holiday, family and my human staff has been closing the books for her manufacturing company. This blog was cross-posted over to The Daily Kos and there was an excellent thread there which answers not only your question but provides a LOT more information as well. The new post today, “Mint the Coin vs the Debt Ceiling” is also cross-posted and most of the weedy discussion will probably be over at Kos. Here is the link for the cross-post for this blog post http://www.dailykos.com/story/2012/11/25/1164553/-Modern-Monetary-Theory-vs-the-Fiscal-Cliff. Again, apologies for not responding sooner.

Comment on Modern Monetary Theory vs the Fiscal Cliff by Joel

Joel — Thu, 27 Dec 2012 17:41:29 +0000

I have two objections to this line of thinking:

1. To my way of thinking, “deficit” is not “debt” – it’s approximately the first derivative of debt. As long as the deficit is positive, the debt grows. Do you distinguish between the two, or should I read your post as if the two were synonymous?

2. The debt cannot grow without bound – or can it? Can it grow to be a multiple of GDP?

Comment on Modern Monetary Theory vs the Fiscal Cliff by lynxreign

lynxreign — Tue, 18 Dec 2012 19:40:50 +0000

I have a question. Private + Public + Foreign = 0, right?
But the government can just print what it wants.
So if the Private = $100t
and Public = $-100t
(ignoring foreign ftm)
and the government prints $100t and puts it in its account, bringing it to $0
This is where I get confused. Is that newly printed $100t actually a $-100t even before it is spent? Does it somehow count against private and foreign bringing the total to 0? Since the government doesn’t actually hold currency (just creates and spends) , if it bought back bonds, paying off debt, how does that not put $ into the private sector while reducing the deficit?
Not arguing against, just trying to understand.

Comment on About Arliss by shortfinals

shortfinals — Sat, 01 Dec 2012 15:36:46 +0000

Dear Arliss, I was once owned by a cute sable Netherlands Dwarf named Frederick the Great. As well as being a bit of a Hohenzollern, he was obsessed with soccer. Being a Netherlands Dwarf, he would perch on my shoulder, and watch Newcastle vs Arsenal or Newcastle vs Manchester for HOURS. I thought that he was a diehard ‘Toon’ fan, until one day, due to bad weather, and my inability to find the remote, he settled down to watch Yeovil Town vs Rushden & Diamonds in the First Round of the F.A.Cup. Then I realized…..it….was….all….about….the…grass!! Such is the way of modern macro-economic theory (and NO, we are not talking about increased tax revenues from C.sativa and C.indica in Washington State and Colorado)

*Lays the obligatory oblation – don’t you just HATE it when it is NOT alliteration because they are vowels, and it just turns into assonance? – of bunny treats at the feet of the All-Powerful Arliss, and genuflects appropriately* (see note)

Please convey my kindest regards to your hard-working staff – may their opposable thumbs never tire!

Ross

(note) I have determined that it is legal to do this in public, although, of course, it is MUCH more fun to perform this act in private!

Comment on Modern Monetary Theory vs the Fiscal Cliff by Danielle McPherson

Danielle McPherson — Sat, 01 Dec 2012 13:55:05 +0000

Thanks for the update arlissbunny. I find it all fascinating too. Learning as fast as I can. Yikes, and I thought I knew Economics!

Comment on Modern Monetary Theory vs the Fiscal Cliff by arlissbunny

arlissbunny — Sat, 01 Dec 2012 08:38:07 +0000

Already done! Thanks for the recommend. I’m reading as fast as I can. It’s all fascinating to me.

Comment on Modern Monetary Theory vs the Fiscal Cliff by bobbyp

bobbyp — Thu, 29 Nov 2012 13:30:34 +0000

Add Bill Mitchell to your reading list. http://bilbo.economicoutlook.net/blog/

Keep on hoppin’

Comment on Modern Monetary Theory vs the Fiscal Cliff by Links 11/28/12 | Mike the Mad Biologist

Links 11/28/12 | Mike the Mad Biologist — Wed, 28 Nov 2012 21:52:19 +0000

[...] Modern Monetary Theory vs the Fiscal Cliff (very good) Southern Demographics Dixie musings Lincoln Against the Radicals This is the chart that debunks what everyone says about US national debt Another anti-propaganda post from NotYourSweetie How Dare You? The real lesson to be drawn from ‘Lincoln’ Disaster Economics Where Petraeus let us down No more doubt about voter suppression Racist idiots watch Red Dawn, tweet about it (younger readers might not realize how much anti-’Ruskie’ bigotry floated around during the Cold War) What Should Children Read? It’s a Great Time To Be a Banker in America [...]