March 2, 2019

Paul’s and Stephanie’s economic delirium talk

Links on Stephanie Kelton’s ‘Paul Krugman Asked Me About Modern Monetary Theory. Here Are 4 Answers.’

Blog-Reference and Blog-Reference on Mar 5

First answer: “Fiscal policy works by driving income into people’s pockets.”
False. Instead: “MMT deficit-spending/money-creation works by driving profit into rich people’s pockets.”

Stephanie Kelton is a scientifically incompetent agenda pusher for the Oligarchy:
► Stephanie Kelton’s legendary Plain-Sight-Ink-Trick
► The Kelton-Fraud
► Down with idiocy!
► Economists: Either stupid or corrupt or both
► How counterfeiters save America with an extra profit and make WeThePeople pay for it
► MMT for beginners

Paul Krugman, of course, is already a little longer known as a failed/fake scientist (see Related).

Egmont Kakarot-Handtke

Related 'Mr. Keynes, Prof. Krugman, IS-LM, and the End of Economics as We Know It' and 'Krugman vs MMT ― like the blind talking about colors' and 'Economics: A pointless left-right wrestling show' and 'Krugman and the scientific implosion of economics' and 'Paul Krugman and economic poultry entrails reading' and 'Enough! Economists, retire now!' and 'Just another wreck' and 'The Krugman curse' and 'Krugman is not an economist' and 'Not a question of simplicity but of stupidity' and 'The general theory of scientific incompetence' and 'Is Paul Krugman necessary?' and 'When fake scientists call out on fake politicians' and 'On economists’ stupidity' and 'Paul the Menace' and 'Economics and corruption' and 'Forget Krugman, forget Keynes, forget economists' and 'Hooray! The formalization issue is finally settled' and 'Dear idiots, government deficits do NOT cause inflation' and 'MMT-Refutation for Dummies' and 'The clock runs down on economics'.

For more on Kelton see AXECquery.


REPLY to Noah Way, Konrad, Detroit Dan, Ralph Musgrave, S400 on Mar 2

The notation of the sectoral balances equations is as follows
MMT (I−S)+(G−T)+(X−M)=0
AXEC (I−S)+(G−T)+(X−M)−(Q−Yd)=0

Because the MMT equation is provably false (it describes a zero-profit economy), the whole of MMT is false. As a consequence, MMT and its proponents are flushed down the scientific toilet. This is how mental hygiene works. And this is how science works for 2300+ years.

Genuine scientists settle matters by material/formal refutation and then move on to a superior approach. To this day, economists are unable to get out of their proto-scientific delirium.#1 Paul Krugman, Stephanie Kelton and you are the living proof.

#1 Economists: Either stupid or corrupt or both

REPLY to Calgacus on Mar 2

People who invoke Jesus in an economic argument have disqualified themselves and are NOT allowed to utter any methodological pronouncements.#1

Obviously, you cannot stop making a fool of yourself: “Egmont, people are trying to make a point I have made in vain to you. These equations are meaningless if you don’t define your terms.”

Guess what, Calgacus and other people who invoke Jesus and cannot put 2 and 2 together: the variables in the AXEC sectoral balances equations are axiomatically well-defined, identical with the subset of the MMT equation, and measurable with the precision of two decimal places.#2, #3, #4, #5

So, if the subset of variables in the MMT equation is correctly defined then the same set of variables in the AXEC equation is also correctly defined. The AXEC set contains, in addition, the well-defined variables profit Q and distributed profit Yd that are missing in the MMT equation.

The problem with MMTers is that they do not even understand what their own balances equation actually says. It actually says that macroeconomic profit is zero.#6 Note that a zero-profit economy is a NONENTITY like the Easter Bunny or Spiderman or the Tooth Fairy or an intelligent MMTer.

#1 How counterfeiters save America with an extra profit and make WeThePeople pay for it, post of Feb 27
#2 From false micro to true macro: the new economic paradigm
#3 A crash course in macro accounting
#4 Wikipedia and the promotion of economists’ idiotism (II)
#5 The final implosion of MMT
#6 Dear idiots, time to get saving and investment straight (II)


REPLY to Bob Roddis, Andrew Anderson, Konrad, Noah Way

Your talk about greed and violence is folk psychology/sociology, or PsySoc for short. It may surprise you to learn that economics is NOT AT ALL about Human Nature/motives/ behavior/action.#1, #2

Economics is about how the economic system works. More precisely, economics deals with the objective systemic laws that govern the behavior of the monetary economy.

Economists, in an analogy, are like scientists/engineers who figure out the laws of aerodynamics, thermodynamics etcetera and manage in the end to get something heavier than air off the ground and safely to some distant destination. Except that economists have NOT figured out anything about how the economy works. Instead, they have for 200+ years now a brain-dead palaver about utility maximization, rational expectations, animal spirits, supply-demand-equilibrium, greed, and other PsySoc BS.

To this day, neither MMTers nor Austrians nor Walrasians nor Keynesians nor Marxians get the interaction of the macroeconomic balances right.#3 So, economics is at a level analogous to physics before Archimedes had figured out the Law of the Lever about 2300 years ago.

Society is cursed with the fact that economic policy has to this day NO sound scientific foundations. What society got instead is incessant PsySoc blather at the intellectual zero lower bound.

#1 Economics is NOT about Human Nature but the economic system
#2 PsySoc — the scourge of economics
#3 MMT-Refutation for Dummies

Wikimedia AXEC144b