warrenmosler

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1 year, 11 months ago
  • warrenmosler commented on the diary post Robert Samuelson Goes to Bat for Paul Ryan: Strikes Out by Dean Baker.

    2012-08-13 18:22:42View | Delete

    Dean, you know large deficits are a function of ‘savings desires’ including the likes of tax advantaged pension funds, corporate reserves, ira’s, etc. and private sector credit expansion, and not a function of any of the rest of that nonsense!

    Thanks!
    Warren Mosler
    http://www.moslereconomics.com

  • warrenmosler commented on the diary post It’s Changing the Reality That Counts, Not the Words In His Job Proposals by letsgetitdone.

    2011-09-06 18:36:15View | Delete

    Hi, First, the FICA suspension (hopefully permanent- it’s too regressive to ever bring back) will add maybe something over 600 billion to income and savings annually from current levels. That’s a reasonably serious add to aggregate demand, and with the savings and income already added by the current deficits of the last few years which [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 21:32:23View | Delete

    also consider the ramifications of going cold turkey to a balanced budget if the debt ceiling isn’t raised. that would mean an annualized drop in federal spending of maybe 10% of gdp which is pretty much an immediate subtraction from gdp (merits of that lost spending aside for now). Then the second order effects kick [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 21:24:58View | Delete

    well stated!

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 21:21:36View | Delete

    so if you give the president a haircut, and he pays you $400, that $400 is your income and it also adds $400 to your nominal wealth until you spend it, when it becomes someone else’s income and nominal wealth. And that haircut also added $400 to the national debt, and it resides in one [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 21:14:49View | Delete

    and a few of my papers have been published in economic journals, including Full Employment and Price Stability, 0 is the Natural Rate of Interest, and A General Framework for the Analysis of Currencies and Other Commodities, and maybe one or two more.

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 21:07:39View | Delete

    we do talk out of both sides of our mouths.

    we demand they make the yuan stronger/dollar weaker for trade purposes,

    and then we’re scared to death they might sell their dollars and make the yuan go up and the dollar go down.

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 21:03:53View | Delete

    this is all from memory to make the point, so please don’t hold me to exact prices, dates, and details, thanks the story starts with the texas railroad commission setting the price of oil at maybe 1.5-$2/barrel by a quota system for the US producers during that time of excess capacity. This was largely responsible [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 15:08:40View | Delete

    congress may never even get a bill to him to sign

    if they do, he’ll sign it, my best guess

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 14:13:07View | Delete

    also not the difference between what ‘a’ dollar buys, like maybe an apple, and what ‘all the dollars buy’ each year, which is the ‘real’ gdp- all the goods and services produced. So while 100 years ago a dollar bought more than a dollar does today, all the dollars today buy far, far more than [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 14:08:35View | Delete

    the social security trust fund is simply after the fact record keeping that helps the accountants account for all the taxes and benefits payments.

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 14:06:24View | Delete

    unfortunately we’re allowing our own pension funds to hoard commodities with their so called ‘passive commodities strategies’ where, based on Goldman analysis and presentations that started maybe 7 or 8 years ago, it’s ‘prudent’ for a pension fund to ‘invest’ 4% of assets in these strategies. Predictably (see my papers at http://www.mosler.org) it’s been an [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 13:59:23View | Delete

    Also, how do we know there wouldn’t be support for a tax hike if the economy got ‘too good’ and unemployment got ‘too low’ (whatever that means)? There is currently plenty of support for interest rate hikes when inflation seems to threaten, even with high unemployment. And, again in my 40 years of experience, I’ve [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 13:55:47View | Delete

    also, with our current tax law, when the economy improves tax revenue increases, to a fault, increasing far faster than govt expenditures. This puts us in an over taxed position that ends the cycle, as happened in the late 1990, where we allowed a federal surplus that drained income and dollar savings from the economy [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 13:50:38View | Delete

    sorry, not what i said.

    0 taxes(federal or state) means 0 value for that dollar/hyperinflation

    and you can see this historically where tax authority broke down and the currency lost all value (except some collector value)

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 13:43:15View | Delete

    Thanks Selise, for organizing this- honored to be featured and get to interact with all the new names! And lots of good, constructive comments and contributions. We all know the critical role full employment plays in any progressive agenda, and my first concern is that long term deficit reduction is likely to mean increasing odds [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 13:17:13View | Delete

    that’s why it’s so critical to promote the ‘mmt’ understanding.

    without it seems most all is lost, one way or another, as we’ve seen over the last few years.

    the headline progressives with their useful fictions, etc. have failed us, as tends to happen when arguing ‘out of paradigm.’

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 13:04:30View | Delete

    right, it’s a political decision, based on generally unwarranted inflation fears from ‘excess’ employment.

    in 2000 or so we happened to have unemployment below 4% and core inflation below 2% if i recall correctly, which cause the temporary abandonment of the theory

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 13:01:42View | Delete

    It’s not ‘monetary inflation’ from excess demand, and ‘that kind’ of inflation is not reason to have less than full employment with demand management, and, of course the transition job for anyone willing and able to work to facilitate the transition away from unemployment. if the peaches die the price goes up due to scarcity, [...]

  • warrenmosler commented on the diary post Modern Monetary Theory: The Last Progressive Left Standing by warrenmosler.

    2011-07-21 12:51:33View | Delete

    Social security is welfare, and welfare to be proud of. for me, the question is the level of support for our seniors that makes us feel proud to be Americans? We don’t want them eating out garbage cans, or, at the other extreme, flying to ball games on private jets. And dollars taken from people [...]

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