Blog-Reference and Blog-Reference
The MMT policy of deficit-spending/money-creation clearly benefits the Oligarchy because it increases macroeconomic profit according to the Profit Law that entails Public Deficit = Private Profit. Thus the Oligarchy’s financial wealth and public debt (currently $22 trillion in the U.S. alone#1) grow in lockstep. MMT policy is disastrous for distribution.
It is MMT’s global mission to keep this business going. The three communicative tools are (i) false solidarity with and false promises for WeThePeople, (ii) belittlement of future negative consequences, and (iii), slandering the budget balancers.
Some days ago it was the Labour leadership who even dares to speak of a relative reduction of public debt: “at the end of every Parliament, Government debt as a proportion of trend GDP is lower than it was at the start.”#2
This is absolutely antithetical to MMT as a joint venture of Academia and Wall Street.#3 In order to get the Central Bank, i.e. the Means of Production of Currency, into the Oligarchy’s hands, the fake scientists/useful idiots of MMT incite Populism: “If there’s anything the establishment fears more than the working classes seizing the means of production, it’s the working classes seizing the means of production of currency. You would think that socialists would understand that.”
But undermining UK Labour leadership is merely a finger exercise compared to undermining the ECB leadership: “So Europe is back to its Franco-German rivalry and emerging out of that process is the unthinkable ― Bundesbank President, Jens Weidmann ― becoming a front-runner to take over the ECB role. He is a man with a past and his current ‘political’ statements, as he lobbies for the position he clearly covets, appear to contradict that past. A leopard never changes its spots. Beware.”
What provokes the ire of the MMT loudspeaker Bill Mitchell more than anything else is Mr. Weidmann’s statement: “Central bank funding must not become entrenched as a catch-all solution to all our woes.” because this is exactly the fundamental tenet of MMT which has ONE solution for ALL economic/social problems: deficit-spending/money-creation.#4 In the eyes of MMT agenda pushers, Mr. Weidmann disqualifies himself by declaring that he intends to respect the law that defines the ECB’s mandate: “… we have to ensure that the prohibition of monetary financing is respected.”
This impertinence kicks Bill Mitchell into hyperventilation: “That is all on the public record.” Accordingly, “Jens Weidmann should be forced to explain to all and sundry why he is a suitable ECB President given his past claims about ECB policy, which, as he admits, remains ‘current’, and which he would be responsible for.”
It should be obvious that Mr. Weidmann will NOT get MMT’s approval even if he admits that he was wrong then but has now converted to MMT: “The reality is that he was wrong in the first place and his predictions and resistance were reflecting the German inflation angst and the application of flawed mainstream macroeconomics.”
Because “… that doesn’t alter the point.” The point being, once a Swabian housewife ― always a Swabian housewife. Those folks are the worst enemies of the deficit-spenders/ money-creators of MMT and other useful idiots of the Oligarchy.#5
Note well that MMT macroeconomics is refuted on all counts#6 and that Bill Mitchell is a scientifically incompetent academic.#7
#1 Infographic Visual Capitalist
|Source: Visual Capitalist|
#2 MMT has an offer that Labour cannot refuse
#3 MMT: The fusion of Wall Street and Academia
#4 MMT: If you’ve got a problem, I don’t care what it is, let me help
#5 MMT’s true program
#6 For the full-spectrum refutation of MMT see cross-references MMT
#7 There is NO such thing as “smart, honest, honorable economists”
Related 'Economic policy and the skirmishes of failed/fake scientists' and 'The economist as storyteller' and 'Are economics professors really that incompetent? Yes!' and 'MMT: doom or survival?' and 'Bill Mitchell cracks the spending whip over the Swabian housewife' and 'Swabian housewife vs Wall Street loan shark' and 'Keynes, Lerner, MMT, Trump, Biden and exploding profit'.