December 29, 2017

Down with idiocy!

Comments on DownWithTyranny! on ‘The Smartest Economist In America Explains What Deficits Really Mean’

Blog-Reference and Blog-Reference

This is what deficits really mean:
Egmont Kakarot-Handtke


Related 'Wikipedia and the promotion of economists’ idiotism (I)' and  'Wikipedia and the promotion of economists’ idiotism (II)' and 'Profit' and 'Wikipedia, economics, scientific knowledge, or political agenda pushing?'

See also on Twitter #MMT #LearnMMT #DebunkMMT #FailedScience #FakeScience #ScientificIncompetence #MMTers #StupidOrCorruptOrBoth #Profit #ProfitTheory  #SectoralBalances #PrivateSectorSurplus #PublicDeficitIsPrivateProfit #MacroEconomics #MacroFoundations #HowMMTservesTheRich #FreeLunch #Oligarchy #BadScienceBadPolicyBadPeople

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COMMENT on Debtee Dec 30 and MNE on Dec 31

From macroeconomic analysis follows Public Deficit = Private Profit.#1

Either Stephanie Kelton does not understand this, then she is an incompetent scientist. Or, she understands it, then she sells a social bluff package for the benefit of the one-percenters.#2

If Stephanie Kelton is the “Smartest Economist In America” one trembles to contemplate how stupid the rest is.


#1 Keynes, Lerner, MMT, Trump and exploding profit
#2 MMT: The one deadly error/fraud of Warren Mosler

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This pivotal MMT sectoral balances equation is false.

Source: Google Images MMT

For the axiomatically correct equation see National Accounting: scientific incompetence or political fraud? and Wikipedia and the promotion of economists’ idiotism and MMT and the magical profit disappearance and The Profit Theory is False Since Adam Smith.

This is the correct equation   (I−S)+(G−T)+(X−M)−(Qm−YD)=0 with Qm monetary profit and YD distributed profit.

Sectoral Balances: False = MMT, True = AXEC

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There are four macroeconomic sectors (household sector, business sector, government sector, and the Rest of the world) but in the following charts one sector is missing, more specifically, the balance of the business sector = profit is nowhere to be seen. Why are two or more sectors lumped together? This obscures the crucial fact that Public Deficit = Private Profit given the balances of the household sector and the Rest of the world.

 Source: Google Images MMT











Exactly here, the rhetorical shell game starts because Domestic Private Balances is household sector's and business sector's balances lumped together. Thus profit becomes invisible.
  

The political fraud of MMT is in the false social solidarity of "We". Because Public Deficit = Private Profit "We" = ninety-nine percenters is actually "They" = one-percenters.

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REPLY to Bill on Jan 2 and Blog-Reference MNE

You say: “Does Kelton understand that Public Deficit = Private Profit? She said as much: “the government’s −$10 is always matched by +$10 in some other part of the economy.”

Kelton’s incompetence is in these four words “in some other part”. The macroeconomic Profit Law says unequivocally Public Deficit = Private Profit and NOT in “in some other part”.#1

Either Stephanie Kelton does not know the Profit Law, which is fundamental to ALL of the economics, or she obscures it for some reason.

There is NO need to speculate about Stephanie Kelton’s ulterior motives. What has been proven is that MMT is materially and formally inconsistent, that is, scientifically worthless.#2 Therefore, ALL economic policy proposals of MMTers, including Stephanie Kelton, have NO sound scientific foundations.

Contrary to the social appearance, MMT is de facto agenda-pushing for the one-percenters. MMTers, including Stephanie Kelton, are either stupid or corrupt or both.#3


#1 For the proof see here
#2 For the full-spectrum refutation of MMT see cross-references MMT
#3 MMT: The one deadly error/fraud of Warren Mosler

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LINK to The Kelton-Fraud and REPLY

Source: Twitter Jun 26, 2018

“THEIR” red ink is not “OUR” black ink but “THEIR” profit
because
Public Deficit (red ink) = Private Profit (black ink).
if the other sectors are taken out of the picture for the moment.

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Twitter 2018 Nov 11, The fraud goes on

Source Twitter Nov 11, 2018
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Twitter 2019 Feb 17

Source: Twitter Feb 17, 2019
Note that "private entities net flow of savings" is composed of the household sector's saving and the business sector's profit. The balance of the household sector is called saving. The balance of the business sector is called profit. Both cannot be lumped together to private entities' savings. This is the Humpty Dumpty Fallacy.


Twitter Jul 26, 2019

Source: Twitter

Twitter Oct 26, 2019


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Link to Econoblog101, Dirk Ehnts, Sectoral balances of the eurozone, 2016 Jul 14

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Twitter Jul 26, 2020


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Twitter Aug5, 2020

Source: Twitter Alexandra Scaggs

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Twitter Nov 9, 2020

Source: Twitter

Twitter Jan 17, 2021



Twitter Jan 29, 2021



Twitter Feb 3, 2021 Profit is the balance of the business sector but it is nowhere to be seen



Twitter Apr 1, 2021 Spain

There is NO “private sector” only the business sector (balance profit/loss) and the household sector (balance saving/dissaving). The 4-sector #ProfitLaw reads Q≡Yd+(I−S)+(G−T)+(X−M).


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Wikimedia AXEC118d