July 24, 2020

MMT ― now official doctrine

Comment on Tom Hickey on ‘A Job Guarantee Costs Far Less Than Unemployment, Pavlina Tcherneva’


It has always been clear that MMT is NOT a scientifically valid economic theory but political propaganda for the benefit of the one-percenters.#1 However, MMTers always claimed that their heroic fight was for the benefit of WeThePeople. Tom Hickey, the MMT philosopher, made it quite clear that his mental grandfather was Karl Marx. Same for Bill Mitchell, the MMT chief ideologist.

MMTers placed themselves firmly in the Progressive camp and demonstratively gathered behind the signboard of the Job Guarantee. That’s pro-labor and anti-capitalist, right? Yes, but only for people who have been trained since childhood to believe any crap.

Tom Hickey is very happy to announce that MMT colleague Pavlina Tcherneva is now on Foreign Affairs: “MMT is making it to the top of the list after having been marginalized for decades. Is the elite getting concerned? This is a superb article and it is addressed to the ruling elite, which is the audience of this venue.”

What is Foreign Affairs? Tom Hickey cites Wikipedia: “Foreign Affairs is an American magazine of international relations and U.S. foreign policy published by the Council on Foreign Relations, a nonprofit, nonpartisan, membership organization and think tank specializing in U.S. foreign policy and international affairs.”

In other words, Foreign Affairs tells the Oligarchy's underlings all over the world what the grand policy outline is. The new strategy in order to save the system is deficit-spending/ money-creation. And this is why MMT and its apostles are currently hyped across all media. Stephanie Kelton is No 1 on the NYT bestseller list and Pavlina Tcherneva is on Foreign Affairs. And the Marx pupil Tom Hickey applauds until he runs out of oxygen behind his mask.

Gentle reminder: the MMT policy of deficit-spending/money-creation is NOT and NEVER has been for the benefit of WeThePeople. MMT is the issuance of counterfeit currency in the form of deficit spending/money creation for the benefit of the one-percenters. Because PublicDeficit = PrivateProfit, MMT is the biggest redistribution program ever.#2 MMT is and always has been a political fraud.

That MMT is now promoted by Foreign Affairs is proof of it.


REPLY to Matt Franko on Jul 24

Economics is not an ordinary science but sciences: “Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel.”

Or, the classical definition: “Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.” (Robbins)

Because the science claim is provably false,#1 economists are in fact fraudsters.

#1 Wikipedia, economics, scientific knowledge, or political agenda pushing?

REPLY to Tom Hickey on Jul 24

When the folks of the social sciences cannot do real science for some spurious methodological reasons#1 that’s no problem. They can do talk shows or polit-marketing or comedy or social media trolling. What they cannot do is to claim that whatever they do is science and to award themselves Nobel prizes. They can award themselves Oscars for the funniest financial hoax and such things.

There are some minimum requirements for science. One is to realize in seconds, not in years, that 2+2=5 is false. Or, for that matter, that the Keynesian I=S is false.#2 MMTers do not satisfy these requirements. They still don’t get the macroeconomic balances right.#3 That is, they fail at elementary algebra. There is NO methodological excuse for that, ever.

There are also some ethical requirements for science. The first and foremost is not to lie and not to cheat. Another is, not to manipulate the communication. MMTers are big-time #EconBlocker and that is the unassailable proof that they are not scientists but political crooks.

MMT is hyped at the moment because the biggest Ponzi scheme of all time has to be sold as an employment program and academically blessed.

People trust science. What they don’t know is that economics in general and MMT, in particular, is fake science.#4

#1 How incompetent are economic methodologists? Very!
#2 Cross-references Refutation of I=S
#3 Profit
#4 Trust in science? Yes, but economics is NOT a science

REPLY to Tom Hickey on Jul 25

You say “Arguing over what "science" is or what counts as "scientific" is philosophy of science and there is no general agreement on criteria for this terms.”

Yes, but there is a general agreement that 2+2=5 is false. And more agreement is not needed.

The foundational MMT sectoral balances equation is algebraically false.#1 And this settles the matter already. Because the foundational economic concept of profit is false the whole theoretical superstructure is false. Because of this, MMT policy guidance has no sound scientific foundations. The only open question is whether MMTers are too stupid for science or whether they abuse the prestige of science for political agenda pushing.

This question is answered by the appearance of MMT’s Pavlina Tcherneva on Foreign Affairs. Roughly speaking, Foreign Affairs is for the Capitalist Party what Pravda has been for the Communist Party. Foreign Affairs is the mouthpiece of the CFR. And everybody knows since Carrol Quigley’s Tragedy and Hope that the CFR and its forerunners had the interests of the Oligarchy on their mind and not so much the interests of WeThePeople.

The appearance of Pavlina Tcherneva on Foreign Affairs is a message from the Central Committee of Capitalism to economists worldwide to make up their minds and to support the current policy of deficit spending/money creation which is the last instrument to mitigate the accelerated breakdown of the system.

Of course, MMTers are free to fight for the survival of Capitalism but it is utter corruption to pretend that this is science.

#1 Profit

REPLY to Tom Hickey on Jul 25

You say: “The foundational MMT sectoral balances equation is an accounting identity. Are you disputing that?”

Not at all. The crucial point is, that I have given the unassailable proof that MMTers have messed up the foundational macroeconomic accounting identity. See
Wikipedia, economics, scientific knowledge, or political agenda pushing?
Section ‘Exemplary proof of the inconsistency of economics’ and Sub-sections ‘Provably false Keynes/MMT’.

Everyone with basic mathematical skills can immediately check the proof.

So, MMT is disproved at the elementary level. Meaning, MMT is scientifically worthless. Meaning, MMT is brain-dead political agenda pushing to the advantage of the Oligarchy and to the disadvantage of WeThePeople.

And this is exactly why MMT is promoted by Foreign Affairs.

Pretty straightforward, indeed.


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Bill Mitchell's Blog May 4 The macroeconomic narrative continues to evolve,  the game is not yet over.

Bill Mitchell's Blog Mai 25 MMT is the new doctrine but there are some folks who still maintain that public deficit/debt is bad for WeThePeople

"Don’t say its over until its over ― MMT is not close to dominating the narrative

Don’t say its over until its over. There has been progress in the macroeconomics narrative since the GFC, which accelerated during the pandemic. Governments have certainly expanded fiscal deficits and taken on more debt and the usual hysteria, which many of those same governments helped to ferment in the public debate, has fallen away. Obviously, for political reasons, a government that has previously been terrorising the population about the dangers of deficits and rising debt as a cover for ideologically-driven austerity programs, has no incentive in continuing those narratives while they have been dragged into maintaining capitalism on life support."

Note that the words profit or distribution do NOT appear once in the whole article.

For more about the Profit Law see AXECquery.
For more on Austerity see Links.

Twitter 29 May The new doctrine at work

Twitter Jun 18 Senator John Yarmuth declares the policy switch from austerity to deficit overdrive

E-PAMPHLETS,  August 2021, Randall Wray What Is MMT’s State of Play in Washington?