Thursday, August 25, 2016

Bill Mitchell — Modern Monetary Theory – what is new about it? – Part 3 (long)

I noted in Monday’s blog – Modern Monetary Theory – what is new about it? – that I am working on a paper (with my colleague Martin Watts) that will form the basis of a a keynote talk I will give at the – International Post Keynesian Conference – which will be held at the University of Missouri – Kansas City between September 15-18, 2016. That talk will now be held at 15:30 on Saturday, September. 17, 2016. I also listed four areas where we would discuss the novel contribution that Modern Monetary Theory (MMT) has made to macroeconomics, despite the claims of both mainstream economists and some Post Keynesians that there is nothing new in MMT. The first two blogs on this topic covered the juxtaposition of employment versus unemployment buffer stocks and the implications of that for how we view the Phillips curve, a central framework in macroeconomics linking inflation to developments in the real sector (unemployment etc). Today’s blog considers another section of the paper – the dynamics of fiscal deficits and public debt. We consider the difference between deficit doves, who consider fiscal deficits are appropriate under some conditions but should be balanced over some definable economic cycle, which we argue has been the standard Post Keynesian position, and the MMT approach to deficits, which considers the desirable deficit outcome at any point in time to be a function of the state of non-government spending and the utilisation of the productive capacity of the economy. We argue that fiscal rules expressed in terms of some rigid balance to GDP target are not only meaningless but dangerous. Fiscal rules in MMT are only meaningful if related to the state of non-government spending and the utilisation of the productive capacity of the economy. This body of MMT work is clearly novel and improves on the extant Post Keynesian literature in the subject which was either silent or lame on these topics.
Bill Mitchell – billy blog
Modern Monetary Theory – what is new about it? – Part 3 (long)
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Dean Baker — If Uber Succeeds in Monopolizing the Market Then Obama is Supposed to Regulate His Former Political Adviser

The Washington Post reported that Uber is deliberately trying to drive Lyft, its major competitor out of the market, by having temporarily low rates and subsidies to drivers. If the Post's reporting is accurate, and barriers to entry prevent new companies from effectively competing with Uber, then the company is engaging in classic anti-competitive tactics. This is the sort of activity that is supposed bring intervention from the Justice Department, since Uber will be charging higher prices if it succeeds in eliminating Lyft.
The management of Uber is either not aware of the law or counting on its political power to ensure that the law is not enforced. Uber hired David Plouffe, President Obama's top political strategist, to a top position in 2008.
Beat the Press
If Uber Succeeds in Monopolizing the Market Then Obama is Supposed to Regulate His Former Political Adviser
Dean Baker | Co-director of the Center for Economic and Policy Research in Washington, D.C

UK Savings Rates being reduced

Some evidence of savers being negatively impacted due to the Aug. 4 rate cut.  Interest income being reduced in August.

Wednesday, August 24, 2016

George Lakoff — Understanding Trump’s Use of Language

Note: This is a follow-up to my previous piece, ‘Understanding Trump’. Please read that piece first.…
Some in the media (Washington Post, Salon, Slate, Think Progress, etc.) have called Trump’s speeches “word salad.” Some commentators have even attributed his language use to “early Alzheimer’s,” citing “erratic behavior” and “little regards for social conventions.” I don’t believe it.

I have been repeatedly asked in media interviews about such use of language by Trump. So far as I can tell, he is simply using effective discourse mechanisms to communicate what his wants to communicate to his audience. I have found that he is very careful and very strategic in his use of language. The only way I know to show this is to function as a linguist and cognitive scientist and go through details.
Complementary to Scot Adams' analysis of Trump based on persuasion.

George Lakoff's Blog
Understanding Trump’s Use of Language
George Lakoff | Richard and Rhoda Goldman Distinguished Professor of Cognitive Science and Linguistics at the University of California at Berkeley

Sputnik International — New Arms Race: China, US Prepare for Missile Warfare

As these tensions simmer, an op-ed for Asia Times by Bill Gertz points out that China has been stockpiling its missile arsenal for years, over concerns of US aggression.
"Beijing’s arsenal of ballistic and cruise missiles has been growing steadily for decades as new systems were fielded in an array of ranges – short, medium and intercontinental," Gertz writes. "Several long-range cruise missiles, capable of carrying nuclear or conventional payloads also are deployed."
In addition, Beijing has secretly developed a hypersonic missile, the DF-ZF glide vehicle, which ascends to the Earth’s upper atmosphere in order to bypass anti-missile defense systems.
As the United States plans to deploy a Terminal High-Altitude Area Defense (THAAD) missile defense system on the Korean peninsula, ostensibly aimed at deterring North Korean aggression, Beijing has been forced to beef up its own missile defenses.
"To develop suitable capabilities of missile defense is necessary for China to maintain national security and improve defense capabilities. It is not targeting any other country or target, nor is it jeopardizing the international strategic equilibrium," Chinese Defense Ministry spokesman Sr. Col. Yang Yujun told reporters last month.…
According to a report in China Military Online, escalations between the two superpowers will lead to the inevitable.
"The problem is not whether the war will break out, but when," the report said. "Our task is to develop the 'trump card' weapon for China before the war."
How's that pivot to Asia working' for ya?

Sputnik International
New Arms Race: China, US Prepare for Missile Warfare

The Empire Files: 'This Ship is Sinking' Says Former Bush Official

Abby Martin interviews retired U.S. Army Colonel Lawrence Wilkerson, former national security adviser to the Reagan administration, who spent years as an assistant to Secretary of State Colin Powell during both Bush administrations. Today, he is honest about the unfixable corruption inside the establishment and the corporate interests driving foreign policy.

Hear a rare insider's view of what interests are behind U.S. wars, the manipulation of intelligence, the intertwining of the military and corporate world, and why the U.S. Empire is doomed.

Colonel Lawrence Wilkerson resigned from the army when he found out that the top officials of the US government had sanctioned torture in Iraq. He was a republican and an adviser to Colin Powell.   H says that war is no big business in the US and the expansion of NATO is just to get more members to sell armaments to.

Lawrence Wilkerson talks about the revolving door where generals leave the army and then become six figure paid experts for the defense industry. You will see them being interviewed on television as security experts advising for more war spending and ever more military build up.

Lawrence Wilkerson says that Russia had 80% of it tanks and military equipment manufactured in the Ukraine and Washington must have been crazed to think that they would give that up easily. He says American citizens must wake up and end this madness, and that we might need a color revolution here too.    

Moon of Alabama — Kurds Lose Out As Neo-Ottoman Turks Steal Syria's Jarablus

Early this morning Turkey invaded Syria. A contingent of 1,500 Turkish sponsored "Syrian rebels", aka Islamist from all over the world, were accompanied by some Turkish special forces and twenty tanks to capture the city Jarablus at the Turkish-Syrian border. The move followed a night of artillery warm-ups and bombing raids. Shortly after noon the "Syrian revolution" flag and the Turkish banner(!) were raised over the city.…

The real plan behind the Turkish invasions is way beyond ISIS or the Kurdish issue. As Turkish papers were eager to point out, the invasion happened to the day 500 years after the battle of Marj Dabiq north of Aleppo:
The battle was part of the Ottoman–Mamluk War (1516–17) between the Ottoman Empire and the Mamluk Sultanate, which ended in an Ottoman victory and conquest of much of the Middle East, ...
The choosing of this date points to Erdogan's real ambition: To recreate an Ottoman empire which would include at least north Syria and north Iraq.

Italy Quake, Tropical Update, Severe Weather

Suspicious0bservers with their daily update that addresses the Italy quake and the latest on some emerging Atlantic storms that may threaten southeast US...

Tsarev: Is the US done with Poroshenko? War favors Clinton — News Front interviews Oleg Tsarev

Insider reports on what's really happening in Ukraine.

Fort Russ
Tsarev: Is the US done with Poroshenko? War favors Clinton
News Front interviews Oleg Tsarev
Translated by I. Sinchougova and J. Flores

Sebastian Mallaby — The dirty little secret of central banking

Despite the brilliance of its practitioners, monetary policy is not a settled science. It is an improvised experiment.
And the experiment is on us.

The Washington Post
The dirty little secret of central banking
Sebastian Mallaby

John Pilger — The Bogus ‘Humanitarian’ War on Serbia

NATO’s war on Serbia in 1999 was the template for other “humanitarian” wars – in Iraq, Libya and now Syria – but it wasn’t “news” when the Serbian leader was cleared, notes John Pilger.
The exoneration of a man accused of the worst of crimes, genocide, made no headlines. Neither the BBC nor CNN covered it. The Guardian allowed a brief commentary. Such a rare official admission was buried or suppressed, understandably. It would explain too much about how the rulers of the world rule.
The International Criminal Court (ICC) in The Hague has quietly cleared the late Serbian president, Slobodan Milosevic, of war crimes committed during the 1992-95 Bosnian war, including the massacre at Srebrenica.
Far from conspiring with the convicted Bosnian-Serb leader Radovan Karadzic, Milosevic actually “condemned ethnic cleansing,” opposed Karadzic and tried to stop the war that dismembered Yugoslavia. Buried near the end of a 2,590-page judgment on Karadzic last February, this truth further demolishes the propaganda that justified NATO’s illegal onslaught on Serbia in 1999.
Milosevic died of a heart attack in 2006, alone in his cell in The Hague, during what amounted to a bogus trial by an American-invented “international tribunal.” Denied heart surgery that might have saved his life, his condition worsened and was monitored and kept secret by U.S. officials, as WikiLeaks has since revealed.
Milosevic was the victim of war propaganda that today runs like a torrent across our screens and newspapers and beckons great danger for us all. He was the prototype demon, vilified by the Western media as the “butcher of the Balkans” who was responsible for “genocide,” especially in the secessionist Yugoslav province of Kosovo. Prime Minister Tony Blair said so, invoked the Holocaust and demanded action against “this new Hitler.”…
It was blatantly ideological; at a notorious “peace conference” in Rambouillet in France, Milosevic was confronted by Madeleine Albright, the U.S. Secretary of State, who was to achieve infamy with her remark that the deaths of half a million Iraqi children were “worth it.”
Albright delivered an “offer” to Milosevic that no national leader could accept. Unless he agreed to the foreign military occupation of his country, with the occupying forces “outside the legal process,” and to the imposition of a neo-liberal “free market,” Serbia would be bombed.
This was contained in an “Appendix B,” which the media failed to read or suppressed. The aim was to crush Europe’s last independent “socialist” state.'…
All but a fraction of America’s vaunted “precision guided” missiles hit not military but civilian targets, including the news studios of Radio Television Serbia in Belgrade. Sixteen people were killed, including cameramen, producers and a make-up artist. Blair described the dead, profanely, as part of Serbia’s “command and control.”
In 2008, the prosecutor of the International Criminal Tribunal for the Former Yugoslavia, Carla Del Ponte, revealed that she had been pressured not to investigate NATO’s crimes.…
This obeisance to the United States and its collaborators as a benign force “bringing good” runs deep in Western establishment journalism. It ensures that the present-day catastrophe in Syria is blamed exclusively on Bashar al-Assad, whom the West and Israel have long conspired to overthrow, not for any humanitarian concerns, but to consolidate Israel’s aggressive power in the region.…
The city of Aleppo is in the news. Most readers and viewers will be unaware that the majority of the population of Aleppo lives in the government-controlled western part of the city. That they suffer daily artillery bombardment from Western-sponsored Al Qaeda is not news. On 21 July, French and American bombers attacked a government village in Aleppo province, killing up to 125 civilians. This was reported on page 22 of the Guardian; there were no photographs.
Having created and underwritten jihadism in Afghanistan in the 1980s as Operation Cyclone – a weapon to destroy the Soviet Union – the U.S. is doing something similar in Syria. Like the Afghan Mujahedeen, the Syrian “rebels” are America’s and Britain’s foot soldiers. Many fight for Al Qaeda and its variants; some, like the Nusra Front, have rebranded themselves to comply with American sensitivities over 9/11. The CIA runs them, with difficulty, as it runs jihadists all over the world.
The immediate aim is to destroy the government in Damascus, which, according to the most credible poll (YouGov Siraj), the majority of Syrians support, or at least look to for protection, regardless of the barbarism in its shadows. The long-term aim is to deny Russia a key Middle Eastern ally as part of a NATO war of attrition against the Russian Federation that eventually destroys it.
Joseph Goebbels would be proud of the propaganda that convinces the American and British publics to support this travesty in the name of "freedom and democracy" wrapped in the respective flags, beginning with Vietnam.

Consortium News
The Bogus ‘Humanitarian’ War on Serbia
John Pilger

Andrew Batson — Stalin and Mao are not making a comeback, but nationalism sure is

Good article on Russian and Chinese history relative to the administrations of Vladimir Putin and Xi Jinping. Rather than rehabilitating Stalin and Mao, what is happening in the construction of a nationalist version of history much the same as America has made heroic figures of the leader responsible for Native American genocide and African slavery. Russia, China and America are not much different in this regard.

JKH — Helicopter Money Policy Formulation

An important aspect of helicopter money is just how a central bank would obtain the authority to undertake such a policy. Eric Lonergan is a leading proponent of HM. As he points out, the resolution of this issue could depend on the institutional regime for the central bank in question. For example, it may be quite different in the case of the ECB than for the Fed, the Bank of Canada, or the Bank of England.
In all cases, however, the delegated authority should be clear in delineating how helicopter money relates to standard fiscal and monetary policy responsibilities. I left the following comment along these lines at Eric’s post on the institutional perspective:
Monetary Realism
Helicopter Money Policy Formulation

Bill Mitchell — Mayday! Mayday! The skies were meant to fall in … what happened?

The British Office for National Statistics, which although recently revamped continues to have the most user-unfriendly home page and dissemination service of all the national statistical agencies, published the latest – Retail Sales in Great Britain: July 2016 – data last week (August 18, 2016). It looked good to me. In the past week or so there has been a stream of data coming out of Britain or about Britain, which also looks good to me. What the hell is going on? The skies over Britain were meant to have fallen in by now.…
Bill Mitchell – billy blog
Mayday! Mayday! The skies were meant to fall in … what happened?
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

See also
That requires some explanation. There are two problems, one minor, and one major.

The minor one is that most economists have come to rely too much on confidence and survey data and not on real numbers. It was always quite hard to figure out why Brexit would lead to an immediate recession, except for the argument that confidence would take such a pounding that businesses wouldn’t invest and shoppers wouldn’t spend.

That turned out to be wrong — and it would have been far better to wait until the actual numbers came in before making any forecasts one way or the other.

The major problem is that most economists within the banks, fund managers and policy institutes were so personally committed to staying within the EU that they couldn’t imagine anything other than a catastrophic outcome if the U.K. left. But that surely is not acceptable. Economics is not a hard science like physics. But it should be capable of more objectivity than that.

No one expects economists to make perfect predictions. It is not that kind of science. But to get such a major event so completely wrong calls into question its relevance and effectiveness. At the very least, next time there is a major vote with global implications, we’ll know who not to listen to — the economists.
Matthew Lynn

Guardian deletes 45% of comments BTL to control its Syria agenda

To think I bought this paper for years, now look at it. A few years back they kept removing my comments in CIF (Comment is Free) so I gave up on it.

The Guardian wasted no time in further exploiting the al Nusra promotional vid it already splurged on its front pages without bothering to check the source. Hardly was it uploaded to the servers before the Graun was using it as a platform to promote – yet again – the (current) official western narrative on Syria, viz that it’s all about Assad and his Russian allies brutalising civilians and some lovely vaguely-defined “rebels”, and if only they could be made to stop everything would be fine.

We have to say “current” narrative because it changes, frequently. Yes, Assad was indeed previously the premier bad guy du jour, but after the failure to get approval for airstrikes against him, the official narrative  started saying ISIS was the problem and no.1 threat to western civilisation, remember? And that remained the line until Russia intervened and started bombing ISIS, which unexpectedly blew that official narrative to bits. Now we have version three, or a reboot of version two. Now suddenly and inexplicably, ISIS has gone from threatening the world with its multi-billion dollar oil and artefact empire to being a sort of barely-acknowledged bit-player whose precise whereabouts are never defined, except that they are never ever located were Russia is bombing – which is always where the “moderates” are. Now, once again the problem is Assad, but mostly it’s Russia, because since they’ve been there they have done literally nothing but bomb hospitals. Because, you see, they are movie bad guys who are evil purely for the sake of it, and we in the west are heroes who have to somehow foil them.

This narrative has never really got much traction, mostly because it’s stupid, and right now it’s not going over at all. The latest serving of it,”The Guardian View on Syrian civilian casualties: Omran Daqneesh – a child of war” was published at 7:58pm on August 18 and remained open for comments for no more than two hours. In that time the BTL section erupted in outrage and was shredded by the moderators. The results are shameful. Of the 75 comments not entirely obliterated (which happens), 34 (45%) had their content deleted. And after all that not even all the remaining 55% were supportive of the ATL line.

The Guardian had to delete 45% of its own readers opinions, just to mantain a bare semblance of its agenda.

No comment that mentioned the terrorist source of the video was allowed to remain. Every comment that identified the media “hero” of the hour, Mahmoud Raslan as a supporter of al Nusra or a friend of child-beheaders was removed. Many others that merely pointed out the gaps and absurdities in the narrative were likewise deleted. Here is just a sample of the carnage, incase it’s tidied up at the source in the future.

Questioning the Underlying Structures of Property and Power is "Off the Table" - Vijay Prashad (2/4)

In part two of Reality Asserts Itself, Paul Jay and Vijay Prashad discuss the limits imposed on questioning the roots of inequality and how those who own the majority of property set the terms for everyone else.

Professor Vijay Prashad is a historian who has studied Carl Marx. He's a socialist, not a communist, but he describes that the best society would combine some socialism with some capitalism. In the US workers are expensive to hire because they have to pay out so much: Health bills, rents and mortgages, travel, good education, college and university, etc. He says that the government should provide these essentials so people can get on with being creative, doing their art, or skills, enjoying their work. The Capitalist part of the economy will work better like this, he says. Basically, Vijay Prashad is arguing for the Basic Income.  

Socialism is the next development on from capitalism where risk of obtaining the essential services is pooled collectively, and then people have a good springboard to go out in the workplace and earn good money, enjoy life, start businesses, and have more leisure time.

Because the One Percent own the banks they can create a near infinite amount of money to be pushed into mortgages. Everyone needs a nice home to live in and as there isn't enough of them the sky is the limit for how much mortgages can go to, so people will just keep bidding up the price of property getting themselves into enormous debt. The market as failed and people have become debt slaves working all hours just to pay the bills, making the One Percent enormously rich. And then they use this money to further corrupt politicians changing the regulations so they can become even more rich, and so on. They have captured the government.

It's time for a change.

Tuesday, August 23, 2016

Jordan Haedtler, Andrew Levin, and Valerie Wilson — Making the Federal Reserve Fully Public: Why and How

Abstract: The Federal Reserve’s governance structure is outdated and inadequate for ensuring that the Fed serves the public interest. In this paper, we examine the case for making the Fed fully public (“why”), and then we consider specific proposals for doing so (“how”). Our analysis indicates that pragmatic and nonpartisan reforms can strengthen the Federal Reserve’s governance while enhancing its operational independence to pursue its statutory mandate without political interference. In particular, the Fed should be a fully public institution whose decision-makers are selected by open and transparent processes; indeed, we find that making the Fed fully public also yields significant benefits for American taxpayers. Moreover, the Fed should be held to the same standards of transparency and accountability as every other public agency, including comprehensive annual reviews by the Government Accountability Office (GAO) and applicability of the Freedom of Information Act (FOIA) to all aspects of the Fed’s procedures and operations.
Like the Bank of England that was nationalized in 1946 after having been private since its inception in 1694, the Fed, founded in 1913 as public-private partnership, should be made fully public (nationalized) in order  to both eliminate the rampant confusion and also remove the appearance of conflicts of interest.

Making the Federal Reserve Fully Public: Why and How
Jordan Haedtler, Andrew Levin, and Valerie Wilson
Economic Policy Institute, August 2016

James Bamford — Commentary: Evidence points to another Snowden at the NSA

This doesn't add much to what has already been published in Alt Media, but it is notable in that now it is appearing on the Reuters news wire. Good read. Not technical.

Commentary: Evidence points to another Snowden at the NSA
James Bamford

“Finance as Warfare”, Michael Hudson’s new book

To simple people it is indubitable that the nearest cause of the enslavement of one class of men by another is money. They know that it is possible to cause more trouble with a rouble than with a club; it is only political economy that does not want to know it.
— Leo Tolstoy, What Shall We Do Then? (1886)

The financial sector has the same objective as military conquest: to gain control of land and basic infrastructure and collect tribute to. And update von Clausewitz, finance has become war by other means. It is not necessary to conquer a country or even to own its land, natural resources and infrastructure, if its economic surplus can be taken financially. What formerly took blood and arms is now obtained by debt leverage.

The creditor’s objective is to obtain wealth by indebting populations and even governments, and forcing them to pay by relinquishing their property or its income. Direct ownership is not necessary. Fully as powerful as military force, debt pressure saves the cost of having to mount an invasion and suffer casualties. Who needs an expensive occupation against unwilling hosts when you can obtain assets willingly by financial means – as long as debt-strapped nations permit bankers and bondholders to dictate their laws and control their planning and politics?

The creditor’s objective is to obtain wealth by indebting populations and even governments, and forcing them to pay by relinquishing their property or its income. Direct ownership is not necessary. Fully as powerful as military force, debt pressure saves the cost of having to mount an invasion and suffer casualties. Who needs an expensive occupation against unwilling hosts when you can obtain assets willingly by financial means – as long as debt-strapped nations permit bankers and bondholders to dictate their laws and control their planning and politics?

Such financial conquest is less overtly brutal than warfare waged with guns and missiles, but its demographic effect is as lethal. For debt-strapped Greece and Latvia, creditor-imposed austerity has caused falling marriage rates, family formation and birth rates, shortening life spans, and rising suicide rates and emigration

The Empire Files: Chevron vs. the Amazon - The Environmental Trial of the Century

Published on 21 Aug 2016

In Part II of this three-part series, The Empire Files continues the investigation into the battle between Chevron Texaco and Ecuador.

Ecuador are doing such great stuff. Lets hope Washington does not cause a coup there, or win with the financial warfare that they use to destabilize Latin American economies.  

This documentary is part 2 of the one I put out the other day and it also shows you how evil the corporations actually are. When Joel Bakan made the documentary, The Corporation, he asked a psychologist who was an expert of psychopathology how did the corporations compare. He checked it out and said that they ticked all the boxes for a psychopath.

Very intelligent psychopaths probably tend to rise to the top of society anyway, but corporations tend to make people leave their conscious at home. Most investors are blind to what is going on, and many companies, like pension funds, buy massive amounts of shares in companies without considering ethics. Indeed, it is written in law that companies must get the maximum returns for their shareholders.

We know from what we read here and in other places that certain sections of the ruling class really couldn't care about ethics. Many of these people live in a bubble and view the rest of us as second class citizens without any merit. They probably think poor people don't have the sophistication to feel pain and suffering.

The White Helmets | The Greatest SCANDAL to hit Syria

Published on 29 Apr 2016

The White Helmets, PROVEN to be created and funded by the US/UK to justify their wars on the glorious Syrian people... We helped our friends from Hands Off Syria and Activist/Writer Vanessa Beeley put together this video to expose the White Helmets.

James W Carden, Rick Sterling on Kill and Killary

The transformation of the Democratic Party from the relative “peace party” to a belligerent “war party” occurred during Bill Clinton’s presidency and is likely to resume if Hillary Clinton is elected, writes James W Carden.
Consortium News
A Clinton Family Value: ‘Humanitarian’ War
James W Carden
Neocons and liberal hawks have poured millions of dollars into propaganda to justify “regime change” in Syria and are now desperate to keep the war going until President Hillary Clinton gets a chance to escalate, as Rick Sterling describes.
Propaganda for Syrian ‘Regime Change’
Rick Sterling

Bill Mitchell — Modern Monetary Theory – what is new about it? – Part 2 (long)

In yesterday’s Part 1 of this two-part blog – Modern Monetary Theory – what is new about it? – I introduced the idea that a major new contribution of Modern Monetary Theory (MMT) to economic theory was in its treatment of inflation and the Phillips curve. This is part of a keynote presentation I will be giving at the International Post Keynesian Conference – which will be held at the University of Missouri – Kansas City between September 15-18, 2016. The keynote presentation is scheduled for Friday, September 16 at 17:00. The topic of my keynote presentation will ‘What is new about MMT?’ and will challenge several critics from both the neo-liberal mainstream and from within the Post Keynesian family that, indeed, there is nothing new about MMT – they knew it all along! I contest that when they say this they are lying and doing so to cover up the inadequacies of their own failed analytical frameworks whether they be mainstream or Post Keynesian.
Actually, it's not all that long. This is a great series and important for understanding the contribution of MMT. Don't miss it. If you don't have time now, read it on the weekend at the beach.

Bill Mitchell – billy blog
Modern Monetary Theory – what is new about it? – Part 2 (long)
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

More Bad News

US new home sales at 9-year high for July... how much worse can it get...

Purchases of new U.S. homes unexpectedly jumped in July to the highest level in almost nine years, led by soaring demand in the nation’s south and adding to signs of persistent housing-market strength. 
Sales increased 12.4 percent to a 654,000 annualized pace, the fastest since October 2007, Commerce Department data showed Tuesday in Washington.

Monday, August 22, 2016

Felipe Rezende — Minsky Meets Brazil Part II

This series will discuss at length the underlying forces behind Brazil’s current crisis.
New Economic Perspectives
Minsky Meets Brazil Part II
Felipe Rezende, UMKC

Noah Smith — Free-market ideology: a reply to some replies

Another debate in the making. Noah makes some good points.


Jeff Spross — Hillary Clinton's economic dream team

Includes Stephanie Kelton and Pavlina Tcherneva.

The Week
Hillary Clinton's economic dream team
Jeff Spross
ht Warren Mosler at The Center of the Universe

Sputnik International National Borders Politicians' 'Worst' Invention - EC President

European Commission President Jean-Claude Juncker stated that borders are the worst invention ever made by politicians.
Nationalism, internationalism, and globalism. These will be key issues in the coming century. IN the long run there will be one people, one planet, the issues are getting from here to there considering hysteresis and path dependence, as well as cognitive-affective-volitional bias. The solution involves a shift in culture that manifests in institutional change.

This can be the result of imposition by elites, natural development that shifts the real forces (foundations, factors) of production that determine the possibilities for social relations, or revolutions. Imposition by elites will meet fierce resistance and set the natural process of development back, which could led to revolutions.

The transnational corporate totalitarianism as neoliberal neo-imperialism that "liberal" elites are foisting on their peoples and the world is not going to work, at least without severe repression of dissent and surveillance-police states that contradict the globalist program of eliminating national borders.

Sputnik International
National Borders Politicians' 'Worst' Invention - EC President

Norman Solomon — Clinton’s Transition Team: a Corporate Presidency Foretold

“The transition team is one of the absolute most important things in the world for a new administration,” says William K. Black, who has held key positions at several major regulatory agencies such as the Federal Home Loan Bank Board. Along with “deciding what are we actually going to make our policy priorities,” the transition team will handle key questions: “Who will the top people be? Who are we going to vet, to hold all of the cabinet positions, and many non-cabinet positions, as well? The whole staffing of the senior leadership of the White House.”
Black’s assessment of Salazar, Podesta and the transition team’s four co-chairs is withering. “These aren’t just DNC regulars, Democratic National Committee regulars,” he said in an interview with The Real News Network. “What you’re seeing is complete domination by what used to be the Democratic Leadership Council. So this was a group we talked about in the past. Very, very, very right-wing on foreign policy, what they called a muscular foreign policy, which was a euphemism for invading places. And very, very tough on crime — this was that era of mass incarceration that Bill Clinton pushed, and it’s when Hillary was talking about black ‘superpredators,’ this myth, this so dangerous myth.”

Black added: “And on the economic side, they were all in favor of austerity. All in favor of privatization. Tried to do a deal with Newt Gingrich to privatize Social Security. And of course, were all in favor of things like NAFTA.”
As for Hillary Clinton’s widely heralded “move to the left” in recent months, Black said that it “was purely calculated for political purposes. And all of the team that’s going to hire all the key people and vet the key people for the most senior positions for at least the first several years of what increasingly looks likely to be a Clinton administration are going to be picked by these people, who are the opposite of progressive.”
Clinton’s Transition Team: a Corporate Presidency Foretold
Norman Solomon

Heske van Doornen — The History of Money: Not What You Think

Most of us have an idea of how money came to be. It goes something like this: People wanted to exchange goods for other goods, but it was difficult to coordinate. So they started exchanging goods for money, and money for goods. This tells us that money is a medium of exchange. It’s a nice and simple story. The problem is that it may not be true. We may be understanding money entirely wrong.

The above story assumes that first there was a market, and then people introduced money to make the market work better. But some people find this hard to believe. Those who subscribe to the Chartalist school of thought give a different history. Before money was used in markets, they say, it was used in primitive criminal justice systems. Money started as—and still is—is a record of debt. It is a way to keep track of what one person owes another. There’s anthropological evidence to back up this view. Work by Innes, and Wray suggest that the origins of money are more like this:
The Minskys
The History of Money: Not What You Think
Heske van Doormen, UMKC