February 1, 2019

Stephanie Kelton and the self-destructive stupidity of the super-rich

Comment on Stephanie Kelton on ‘The Wealthy Are Victims of Their Own Propaganda ― To escape higher taxes, they must embrace deficits.’*

Blog-Reference and Blog-Reference

Stephanie Kelton is desperate:
  • For years now, MMTers propose deficit-spending/money-creation as the key policy instrument for the solution of any social/economic problem
  • Because of the macroeconomic Profit Law, it holds Public Deficit = Private Profit#1
  • Clearly, MMT policy is a permanent free lunch for the Oligarchy
  • The fabulous wealth of the Oligarchy is the mirror image of the fabulous public debt ($21.5 trillion).#2
  • Part of the free-lunch profit is invested in government bonds and generates ultra-safe interest income, which is taxed from WeThePeople, for an indefinite time
  • MMTers argue consistently against taxing the rich#3
  • MMTers deceive WeThePeople about the distributional effects of MMT policy#4
  • MMT academics corrupt science on a daily basis by violating well-defined standards.#5
No one has done more for the super-rich than MMTers. But then comes a super-rich imbecile and ruins everything: “To be blunt, the super-rich have become victims of their own successful marketing campaign. Conservative billionaires like Pete Peterson spent decades complaining about debt and deficits, putting enormous sums of money into a PR campaign to turn politicians and the public against deficit spending.”#6

What a big letdown for Stephanie Kelton who has worked so hard for the benefit of the Oligarchy.#7

Egmont Kakarot-Handtke

* BloombergOpinion

#1 What is wrong with MMT? and What is wrong with Brad DeLong?
#2 Stephanie Kelton on how to become fabulously wealthy
#3 MMT: Academic snake oil for the people
#4 Stephanie Kelton’s legendary Plain-Sight-Ink-Trick
#5 MMT: The fusion of Wall Street and Academia
#6 Austerity: Who takes the little man for a ride?
#7 MMT Progressives: The knife in the back of WeThePeople

Related 'MMT in a nutshell' and 'MMT: For the record' and 'MMT Progressives: stupid or corrupt or both?' and 'Austerity and the political games Progressives play' and 'The biggest scientific mistake of the last centuries, and it has much to do with academic economists' and 'Note on “Era of Austerity coming to an end...”' and 'Economics: A pointless left-right wrestling show' and 'MMT: Distribution is the drawback NOT Inflation'. For the full-spectrum refutation of MMT see cross-references MMT.

REPLY to Julian Potter on Feb 3

You say: “Every public dollar spent becomes a private dollar in savings. This isn’t even MMT, it’s just basic macroeconomics.”

No! Basic macro says Public Deficit = Private Profit. Do your macroeconomic homework. See
The Kelton-Fraud.

REPLY to Julian Potter on Feb 3

Because of the macroeconomic Profit Law, i.e. Public Deficit = Private Profit, MMT benefits the Oligarchy and NOT WeThePeople. See MMT: A free lunch for the Oligarchy.

REPLY to JuHoansi on Feb 5

Take notice that MMT is refuted on all counts according to the scientific criteria of material/formal consistency.

For details see cross-references MMT.

REPLY to JuHoansi on Feb 6

As you can easily see, the foundational MMT sectoral balances equation (I−S)+(G−T)+(X−M)=0 is logically/mathematically defective. Because of this, the whole of MMT is scientifically worthless.

REPLY JuHoansi on Feb 7

The point is NOT who says what but whether is it provably true, i.e. materially and formally consistent.

REPLY to JuHoansi on Feb 8

What MMT is saying to WeThePeople is the same as what the counterfeiter says to his wife pointing to his printer: I can buy you everything you ever want. Technically this is possible, of course, but economically it is a fraud. See

How MMT makes everybody happy
The day when WeThePeople sends debt-deranged economists to hell

REPLY to JuHoansi on Feb 9

Why do you permanently try to sidetrack the fact that MMT is a political fraud?

The Kelton-Fraud

REPLY to JuHoansi on Feb 10

Which of the two macroeconomic sectoral balances equations is true?

a ► (I−S)+(G−T)+(X−M)=0
b ► (I−S)+(G−T)+(X−M)−(Q−Yd)=0

If you cannot answer this simple question you are out of economics.

REPLY to JuHoansi on Feb 11

Those equations tell everybody that Public Deficit = Private Profit, that MMT is a free lunch program for the Oligarchy, and that fabulous financial wealth in the US is equal to fabulous public debt (22 trillion).

That a counterfeit money producer cannot go bankrupt is a rather trivial revelation. The fact is that MMT is a political fraud that hurts WeThePeople big time.

MMTers are either stupid or corrupt or both.

REPLY to JuHoansi on Feb 11

No one with more than two brain cells takes seriously what politicians, billionaires, MMTers, or Stephanie Kelton blather about budget deficits.

Stephanie Kelton says “… the government’s ‘red ink’ becomes our ‘black ink”. The fact is instead Public Deficit = Private Profit. You say “Kelton helps the poor”. The fact is, Kelton provides a free lunch for the Oligarchy.#1

MMT is bad theory, MMT is bad policy, MMTers are bad people.

#1 Fraud comes always in the cloak of philanthropy, salvation, or threat of doom