STEM Tech bros figuring out a way to safely bypass the current Art degree administered inefficient and sometimes treacherous banking system…🚨CHAMATH: "SpaceX uses Stablecoins. They collect payments from Starlink customers and when they aggregate them in long-tail countries, they don’t want to take the FX risk or deal with sending wires, so they’ll swap into stablecoins, send it to the US, and then swap back to USD." pic.twitter.com/eHxGCW919y— Autism Capital 🧩 (@AutismCapital) December 21, 2024

Have to watch to see if banking lobby again approaches a now new GOP government with this regulatory modification request… last time in 2021 nutty Pocahontas led Dems wouldn’t agree with it so we’ve remained susceptible to  the financial asset volatility Art degree monetarists can cause when they “inject some pumped in money!” in their characterizing deranged way they think Accounting abstractions are REAL…I think UST should be in the SLR computation, although there might be some weighting of risk according to duration.O/N reserve balances definitely should be excluded, as done by BoE and currently ECB.— Kim Driver (@KimDriver11) May 5, 2023 If we can get this then there will be A LOT of reduction in realized volatility going forward while most participants will be still be paying the

Good point by Setzer … if they stick Trump with the “debt ceiling!” he could end up going after all these foreign USD savings to fund his agenda…I see that President elect Trump’s eye has turned to the trade deficit with Europe — So a reminder that the single most important thing the US could do to bring down the deficit with the EU is to reform the US corporate tax code to end the pro pharma offshoring provisions 1/ pic.twitter.com/ITaXmbwsQJ— Brad Setser (@Brad_Setser) December 20, 2024

Trump is never going to stand for this and will go to war with the Democrat Fed monetarist morons… The bond market is now pricing in just one 25 bps rate cut by the Fed in all of 2025. Back in September six 25 bps rate cuts were expected.https://t.co/l5IYmkf6Ih pic.twitter.com/syX4RcqQaP— Charlie Bilello (@charliebilello) December 19, 2024

In MMT terms, imports are a real gain and exports are real loss, where "real" means "stuff" in the sense of resources used in production including and the labor that gets embedded. TThe importing country is getting commodities that the members of society in the exporting country are not able to enjoy in spite of having produced them, while the members of society of the importing country are enjoying those commodities instead of the actual producers. So, from a real point of view rather than a financial one, importers are getting a better deal in exchanging currency for actual goods — almost. Imports mean that the importer is receiving embedded labor as part of the deal which may affect employment in the importing country negatively Exporting has the opposite effect on labor by creating

Economics is often described as the dismal science, but it’s more apt to call it the mystical science. For generations, the field has been ruled by aphorisms that sound profound but crumble under scrutiny. These sayings, like “tighten your belt in tough times” or “the market knows best,” are not neutral observations. They are myths crafted to justify particular views of how society should be run—views that often prioritise the interests of the few over the many.Take monetarists, for example, with their obsession with controlling inflation through tight monetary policies. Their aphorisms reinforce the “sound money” myth, which ultimately serves financiers by ensuring that debt repayments hold more value than wages. Similarly, New Keynesians push the myth of the impartial, unelected central

Today (December 13, 2024), MMTed releases Episode 9 in the Second Season of our Manga series – The Smith Family and their Adventures with Money. Have a bit of fun with it while learning Modern Monetary Theory (MMT) and circulate it to those who you think will benefit.William Mitchell — Modern Monetary TheoryEpisode 9 (S2) of the Smith Family Manga is now available – the Prime Minister embarrasses himselfBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Dour looking group taking a victory lap:🇦🇷 MILEI: ARGENTINA ENDS DEFICIT FOR THE FIRST TIME IN 123 YEARS"The deficit was the root of all our evils—without it, there’s no debt, no emission, no inflation.Today, we have a sustained fiscal surplus, free of default, for the first time in 123 years.This historic… https://t.co/uszEgPd493 pic.twitter.com/nt5jJGQM1V— Mario Nawfal (@MarioNawfal) December 11, 2024 Their equity market index responding favorably….But they have been drastically reducing their risk free rate at the same time:

This is an article on the history and politics of central banking. As such it is important for understanding the details of MMT institutional analysis regarding banking in historical context.There is also some fascinating information about Reichsbank President Hjalmar Schacht.It also provides insight into how central bankers still think and operate. It’s a club.Notes on the Crisis"The First Cause of Stability of Our Currency is the Concentration Camp" [Adolf Hitler]:Central Banker Solidarity on the Road to Hitler’s Czechoslovakian GoldPavlos RoufosSee also:"The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a

Decolonize to Dedollarize! I’m often asked whether BRICS is going to be the game-changer that will disrupt the current geopolitical hierarchy, dedollarize the system, and create a new multipolar word. My position has always been that we can’t dedollarize a system that hasn’t been structurally decolonized yet, and that no new multipolar world can be born without Africa and the rest of the Global South being repositioned away from the bottom of the global hierarchy and at the center of a New International Economic Order.…Global South Perspectives—Reflections & Analysis by Fadhel KaboubCan BRICS Create a Multipolar World?Fadhel Kaboub, Associate Professor of economics at Denison University (on leave) and President of the Global Institute for Sustainable Prosperity. He currently serves as

His latest intervention (November 28, 2024) –Europe’s Economy Is Stalling Out – was published by Project Syndicate, which regularly gives space to these nonsensical mainstream articles.The simple proposition that Rogoff offers is:"As Germany and France head into another year of near-zero growth, it is clear that Keynesian stimulus alone cannot pull them out of their current malaise. To regain the dynamism and flexibility needed to weather US President-elect Donald Trump’s tariffs, Europe’s largest economies must pursue far-reaching structural reforms."And those structural reforms have to tackle the:"… bloated and sclerotic welfare states to blame?"Apparently, those that hold to the most basic macroeconomic rule that spending equals output and income and drives employment growth are

David Bholat recently wrote “How to Modernise Central Bank Balance Sheets: No Notes.” It is partly in response to this article. The idea is that banknotes (“dollar bills”/”pound notes” etc. issued by the government should not be classified as a liability, rather as some form of capital or possibly taken off the balance sheet. I have run into variants of this idea in the past (the stronger version being that all forms of the monetary base are not liabilities), and the root idea is that “monetary issue is good for the economy, so how can it be a liability?” Such a redefinition or removal of banknotes is either misleading or wrong.Bond EconomicsYes, Banknotes Are A Central Bank LiabilityBrian Romanchuk

Scott Bessent is aware of MMT but he has a faulty understanding of what MMT says, Kelton argues. On the positive side, he is not clueless, like most others. For example, he gets that high rates are may be stimulative and low rates contractive, based on policy outcomes of the Bank of Japan.The LensWhat Trump’s Pick for Treasury Secretary Gets Right (and Wrong) about MMTStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats’ chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders

Plug for Randy Wray’s popular-access book on basic MMT.Lars P. Syll’s BlogMoney for beginnersLars P. Syll | Professor, Malmo University

Why would you have your RRP rate above your min FFR target and then not understand why MMMFs won’t fully engage in Tsy markets?How stupid are these f-ing people?When Fed did RRP in the first place they created a competing risk free asset class to Tsy securities which was bad enough… but then set the rate higher than your min target?#Fed officials are mulling a 5 bps cut to the reverse-repo rate to align it with the lower end of the federal funds target range. Nov meeting minutes highlight this as a "technical adjustment" to control the benchmark rate. RRP usage: $148.8B on Tue.#Fed #FOMC #Powell #inflation pic.twitter.com/QVDV6FlIMD— Rymond_Inc (@rymondIncKenya) November 27, 2024 So what’s going to happen is these Art degree monetarist morons are going to cause an auction failure and then

As James Galbraith put it years ago, "It’s the interest rate, stupid."Nostalgia: Carlos "beowulf" Mucha liberally quoted. And no, not "the coin."The Lens with Stephanie KeltonHow to Cut $2 Trillion in Federal Spending Without Breaking a SweatStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats’ chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders

Has Trump thought his tariff proposal through? Brian gives reasons to doubt that this move would be successful in replacing the income tax or substantially affecting it.BTW, Brian has migrated from X to Bluesky along with many others in the fields of economics and finance. Links provided at the end of the post.Bond EconomicsTariffs As A Fiscal Tool?Brian Romanchuk

Whoa!… hold up!…  was Marx correct? 🤔Americans are increasingly voting along class lines, not racial ones. That could upend how we’ve thought about politics for decades. https://t.co/rWBJFK32BD— The Wall Street Journal (@WSJ) November 15, 2024

Today (November 15, 2024), MMTed releases Episode 8 in the Second Season of our Manga series – The Smith Family and their Adventures with Money. Have a bit of fun with it while learning Modern Monetary Theory….William Mitchell — Modern Monetary TheoryEpisode 8 (S2) of the Smith Family Manga is now availableBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Oh no, what will we do? "Privileged" (her words) Eva Langoria is leaving the U.S.!! What a loss.  Here’s Eva, lamenting for all the rest of us who will be left behind.“Most Americans” are “going to be stuck in this dystopian country, and my anxiety and sadness is for them."Thank you, Eva, for your fake concern. We’ll try to get by in this terrible country as best as possible. But before you go, can you please take all of your Hollywood asshole friends, too? America can’t stand you and your privileged elitist sanctimonious jerks from Tinseltown. Get lost. Go!! Hopefully, this is not an empty threat by Eva, as we hear regularly from people like Alec Baldwin, Susan Sarandon, and Robert De Niro. They should take the lying, terrorist-loving, woke, anti-American mainstream media with them.

More wishful thinking from Democrat left:Given voters’ ire at the high cost of living, it might be wrong to assume Donald Trump will simply pick up where he left off and pressure the Fed to take interest rates right on down https://t.co/Mf70bunUQr— Bloomberg Economics (@economics) November 12, 2024

Reports Iran conspired to assassinate Trump…The DOJ charged 3 individuals in an assassination plot against Trump. Two are in custody and one is allegedly living in Tehran — the capital city of Iran.Some really interesting things are happening right now. pic.twitter.com/8rsDBdyjGk— johnny maga (@_johnnymaga) November 8, 2024 6 of these m-fers just deployed to Qatar plus boomers to the region…Maybe Trump will demand the surrender of the Iranian regime…or finally incinerate that whole goat f-ing rats nest…Volatility premiums increasing 2 months out…

This guy a MAGA Trump insider perhaps in line for AG (probably too much to hope he gets it 🙏🏻) but it’s revealing that he mentions the bankruptcy first…Trump’s opponents attempted to bankrupt him for non-fraud.And imprison him for life for non-crimes.And take him off the ballot.And take off his head. Now they want “unity”?Fuck them.Let’s unify them in prison.— 🇺🇸 Mike Davis 🇺🇸 (@mrddmia) November 8, 2024 Biden 2022 rate increases were unprecedented… so you can see what they did they put the rates way up to squeeze him, then they get commie kangaroos in NYC to impose half a billion dollars civil judgement in attempt to to bankrupt him…  flushing the US CRE market down the toilet bowl in the process causing mini banking crisis in March 2023 … hoping Trump somehow got caught up in the

What monetarists. deficit hawks, and debt phobes don’t get. Quotes by Abba Lerner and John Maynard Keynes.Lars P. Syll’s BlogFunctional financeLars P. Syll | Professor, Malmo University

Minsky quote that underlies not only Keynes but also MMT.Lars P. Syll’s BlogOn Sraffa and KeynesLars P. Syll | Professor, Malmo University

We will need weeks, months, years to fully grasp the enormity of what took place in Kazan during the annual BRICS summit under the Russian presidency.For the moment let’s cherish arguably the most appropriate definition of BRICS as a laboratory of the future: this lab, against nearly insurmountable odds, is actively engaged in creating a Sovereign Harmonious Multi-Nodal World.My take is that there were two tracks leading up to the meeting of BRICS+ in Kazan. The first track was widely reported in the Alt-Media and was wildly optimistic about the outcome since it focused almost exclusively on the "key players" none of whom had any political clout. It was even speculated that a new monetary system based on a BRICS+ currency would be announced. This turned out to be pie-in-the-sky.The second

On April 5, 1933, US President Roosevelt made an executive decision to create the – Civilian Conservation Corps (CCC) – which was a component of the suite of government programs referred to as the – New Deal – that defined the Federal government’s solution to the mass unemployment that arose during the early years of the – Great Depression. These programs have been heavily criticised by the free market set as being unnecessary, wasteful and ineffective. Critics assert that no long-term benefits are forthcoming from such programs. However, those assertions are never backed by valid empirical evidence. A recent study by US academics has provided the first solid piece of evidence that the CCC delivered massive long-term benefits to the individuals who participated in it. And these benefits

Lars comments on a quote from Stephanie Kelton’s The Deficit Myth showing the loanable funds theory being inconsistent with stock-flow accounting.Lars P. Syll’s BlogMMT — debunking the deficit Lars P. Syll | Professor, Malmo University

Not much happening regarding MMT these days.Herer is an anecdotal report on Russian banking. And, yes, you read that right. You get 24% not the bank.Doctorow is an American residing in Brussels who spends a good deal of time in Russia. His wife is Russian and he is fluent in Russian. A "Russianist," he has a a PhD in history (Harvard) and is a retired business person. His reporting does not conform to the narrative.Gilbert Doctorow—International relations, Russian affairs 24 per cent annual interest on time deposits: St Petersburg Travel Notes, installment threeGilbert Doctorow

The conclusion is that it’s a lot easier to talk about creating truly alternative institutions than actually doing so, which means that BRICS will likely just remain a talking club, or a “multitasking laboratory of global governance” as Kortunov diplomatically described it. That’s not to downplay the group’s role since it’s important for major and developing non-Western countries to discuss pressing issues of the evolving world order, especially economic-financial ones, but that’s not the same as what enthusiasts expected.A dose of reality. The Alt-Media got a quite a bit ahead of reality with respect to their expectations of the initial outcome.The Kazan Summit therefore wasn’t a failure, and in fact, it succeeded in its only realistic goal all along of gathering its members and partners