by Summary:
They always forget the other half of the equation.
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Mike Norman considers the following as important:
This could be interesting, too:
They always forget the other half of the equation.
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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| They always forget the other half of the equation. |
I don't hate Mike, I just don't like the fact that he is trying to sugarcoat *sheet*. That is dangerous thinking. I have seen more people with positive delusional thinking losing money in the casino than the ones wth realistic one.
What am I trying to sugarcoat? I’m giving an actual explanation of how things work. If that sugarcoating to you then you need to boost your knowledge level or stay stupid.
Dude, you know what the real problem is? It's people like you who are so f'ckn negative about everything.
half right is better then totally wrong
Since you like critiquing videos please critique this recent video: Peak Prosperity business-as-usual from 5:30.
First of all I don't believe his claim that all money is loaned into existence.
Money isn't, Fiat Currency is !!
@Mk 11 I thought Fiat currency is spent into existence by the government via the fed.
@Danger Zone whoever is "spending it into existence" has the debt aferwards. It's borrowed into existence.
@Heino Der Sänger the federal government doesn't need to borrow its own currency. Randall Wray will tell you that makes no sense at all.
@Danger Zone the federal government is not a bank it can't print it's own money.
I’m not sure it’s helpful to distinguish between credit and money.
Perhaps it is better to refer to deposits, and they can come from gov spending, and credit.
@Million Dollar Rabies Something else educational would be to realise and acknowledge the overwhelming majority of transactions in the world are in the form of deposits derived from credit.
I don't buy the tax aspect either. To state that taxes can only be paid after gov spends is over simplifying to the extreme – they could merely open an account with a private bank, and accept deposits – like the rest of the world.
In otherwords, it isn't "if you want to pay your taxes then X" it should actually be "if the gov wants to be able to tax it must do"
@Sned Meister Credit is just a reserve transfer at a later date times likelihood it will go through. It isn't measuring the supply of reserves, it is measuring supply of future planned transfers: which can be higher than reserves because the average reserve can be exchanged multiple times within a long enough time period.
Credit is to money what futures are to commodities. With the caveat that money can be transferred multiple times over its existence.
Taxes are just a label for whatever you want to call the fact that a larger group of more well coordinated powerful people can extract tribute out of less powerful groups. Call it extortion if you want, I don't care: we are legally extorting ourselves in ways that seem better than an anarchic alternative.
Either we have one big central machine in D.C. that everyone fights over which decides who gets what new centrally valued money, or local governments print local debt that would need to be exchanged for other local debts if they travel, and now everyone is fighting at their local governments far more than they fought in D.C.
@Million Dollar Rabies I didn't mention the word extortion, what I explicitly noted and pointed to, was the issue I have with wording in MMT.
i.e "if you want to pay your taxes" which is nonsensical. If the gov were suddenly unable to tax, nobody would be scrambling over themselves to work out how to pay it.
It should be "if the government wants to tax, then it must first ensure reserves exist"
There is a whole world of debt issued 'Dollars' outside of the US, and banks have been issuing, with borrowers spending for decades, and not a single reserve entry in sight exists.
How does that square with "a central machine in DC?"
@Million Dollar Rabies credit is also fiat
@Sned Meister "If the gov were suddenly unable to tax, nobody would be scrambling over themselves to work out how to pay it."
Yes. If a debt enforcing entity is suddenly unable to enforce debts, whatever it was enforcing debts in will suddenly lose the use value of being tender for what used to be an ever present debt. I am sure that The United States Federal Government is mere days from collapse.
"There is a whole world of debt issued 'Dollars' outside of the US, and banks have been issuing, with borrowers spending for decades, and not a single reserve entry in sight exists."
If reserves are never obtained to fulfil those debts, they are entirely worthless. You can obviously grant bad credit sometimes, but credit for a whole economy is only ever actually good if you can demonstrate sufficient access to the reserves that guarantees it.
Like, you are basically pointing to a dry bank and saying "that's a river", and I am saying "no, that's the implication that there will be a river later if normal conditions occur." Economies can plan themselves around dry banks: but only if water comes eventually and regularly. If the river bank remains dry, the economy will shrink because the implication of water didn't materialize, and if loans are not paid back, the underlying credit will no longer have the value of what it promised for the same reason: the implication of reserves never materialized.
Hit them with knowledge!