Blog-Reference and Blog-Reference on Feb 10
Peter Cooper asserts: “Modern Monetary Theory (MMT) offers an understanding of sovereign (and non-sovereign) currencies that is applicable to a wide range of economic systems, including capitalist and socialist ones. Irrespective of the personal political preferences of its proponents, the theoretical framework in itself is neutral on the appropriate balance between public sector and private sector activity, or the relative merits of capitalism and socialism.”
This is not the case.
In the course of an enumeration of MMT’s essential features, Peter Cooper mentions “Government deficit equals non-government surplus.” and explains “Basic accounting relationships apply irrespective of a society’s politics. Funds created through government spending that have not been taxed back are held as financial assets by non-government.”
It is methodologically true, of course, that “Basic accounting relationships apply irrespective of a society’s politics”, however, MMT’s fundamental accounting relationship, i.e. the sectoral balances equation, is logically/mathematically false. Because of this fundamental blunder, the rest of MMT is scientifically worthless and neither applicable to capitalism or socialism.
The correct accounting relationship states Public Deficit = Private Profit.
For the proof see
► Rectification of MMT macro accounting
► What and where is profit?
► “But economics is not pure mathematics or logic” No, it is pure blather
► Stephanie Kelton’s legendary Plain-Sight-Ink-Trick
Links on Michael Roberts’ ‘The Green New Deal and changing America’
Blog-Reference on Feb 10
Calgacus cites: “Many of the MMT school don’t appear to understand (or at least don’t admit) that the very existence of MMT as a body of knowledge directly opposes ruling capitalist class interests.” and comments “Ohh, they almost all understand and admit it. They’re just quiet about it.”
To speak of MMT as a “body of knowledge” is a silly joke. MMTers have not even understood that their foundational sectoral balances equation is false. Descriptions of the operational details of Treasury/FED interactions are useful information but NOT scientific knowledge.
To maintain that “MMT directly opposes ruling capitalist class interests” is either self-delusion or fraud. Because of the macroeconomic Profit Law, i.e. Public Deficit = Private Profit, the MMT policy of deficit-spending/money-creation guarantees a permanent free lunch for the Oligarchy. For details see
► Keynes, Lerner, MMT, Trump and exploding profit
► Fraud comes always in the cloak of philanthropy, salvation, or threat of doom
► Socialism and scientific incompetence
► MMT and Marxism ― blather as immunizing stratagem
***Links on Lars Syll’s ‘Paul Samuelson–an economist in “the business of dishonesty”’
Blog-Reference on Feb 8
The problem with Samuelson is NOT silly policy advice but scientific incompetence. See
► The father of modern economics and his imbecile kids
► There is NO such thing as “smart, honest, honorable economists”
Link on Bruce Wilds' ‘Deficit Spending Main Driver Of American Economy!’
Blog-Reference on Feb 5
Tom Hickey replies: “And Accounting 101 shows why this is wrong. Basic accounting shows that public debt increases private saving. The funding sources is currency issuance. The funds government net spends in aggregate are exactly equal to the funds that the private sector net saves in aggregate.”
Take notice that the assertion “public debt increases private saving” is provably false. Economists are too stupid for macroeconomic accounting. Because of the macroeconomic Profit Law, it holds Public Deficit = Private Profit.#1
#1 Stephanie Kelton’s legendary Plain-Sight-Ink-Trick