July 10, 2020

What Is MMT? (II) ― Short Version

Comment on Brian Romanchuk on ‘What Is MMT? (Short Version)’

Blog-Reference and Blog-Reference and Blog-Reference on Sep 23 and Blog-Reference Sep 24

  • MMT is the issuance of counterfeit currency in the form of deficit spending/ money creation for the benefit of the one-percenters.
  • Genuine currency and counterfeit currency are indistinguishable because they originate from the same source: the Fed. It all depends on whether additional fiat money is injected on the supply or the demand side.
  • MMTers are not scientists but political agenda pushers. MMT policy is to the disadvantage of the ninety-nine-percenters. The counterfeiter steals from the rest of society via the anonymous price mechanism.
  • It is the ninety-nine-percenters who owes the public debt. And it is the one-percenters who own the corresponding financial assets. Interest on public debt works like a regressive tax as long as the debt is rolled over.
  • Because #PublicDeficitIsPrivateProfit, MMT is the biggest redistribution program ever.
  • MMT is a political fraud.#1

Egmont Kakarot-Handtke


#1 More details

Related 'What is MMT?' and 'Keynes, Lerner, MMT, Trump, etc. and exploding profit' and 'MMT Basics' and 'Wikipedia, economics, scientific knowledge, or political agenda pushing?' and 'From the debt economy to the gift economy: how America is brainwashed to love budget deficits'. For the full-spectrum refutation see cross-references MMT.

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Wikimedia AXEC165


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REPLY to Asad Zaman

You say: “One of the key insights of MMT is that NOBODY ‘owes’ the public debt.”

This is not a key insight but a key deception of MMTers in order to sell the deficit-spending/money-creation program to a naive public.

Note that

• The macroeconomic Profit Law implies Public Deficit = Private Profit.#1 MMT policy is a free lunch for the Oligarchy.

• Public debt grows in lockstep with deficit-spending/money-creation. It holds WeThePeople owe the debt and the Oligarchy owns the corresponding financial assets. The state manages the public debt on behalf of WeThePeople.

• The Oligarchy appreciates this very much because the taxman collects interest from WeThePeople in the form of taxes and hands the full amount in time over to the Oligarchy. The state is considered the best debtor because of its unlimited taxing power.

• Taxing power replaces the bone-breaking of private debt collection which the Oligarchy considers as inefficient/expensive.

• Thus, the debt-slavery of WeThePeople is established by pretending that nobody owes the debt and nobody pays interest. As Lerner's Lie goes: We owe the debt to ourselves and pay interest to ourselves. The lie is the fake collective We.

MMTers are the academic agenda-pushers of Wall Street. They deceive WeThePeople. Asad Zaman and the rest of the self-styled Progressives are complicit in the greatest financial fraud in history.#3



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REPLY to Yoshinori Shiozawa on Sep 28

The lethal defect of the MMT policy of deficit-spending/money-creation is on distribution, not on inflation. The observable distribution of income and financial wealth between the 1% and the 99% is the outcome of MMT policy.#1

The inflation discussion is a smokescreen.#2

The macroeconomic price formula states for the elementary case P=ρW/R. ρ>1 represents private/public deficit-spending/money-creation and this implies that a period deficit produces a one-off price hike and NOT inflation.#3


#2 Gosh! the One Percent have gotten $21 trillion richer Links on Distribution

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REPLY to Asad Zaman on Sep 29

The MMT textbook gets the foundational macroeconomics sectoral balances equation wrong. For details see Refuting MMT’s Macroeconomics Textbook.

Because of this, the analytical superstructure (inflation, employment, etc.) is provably false.