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zapster commented on the blog post FDL Book Salon Welcomes L. Randall Wray, Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems
One inflation angle that I’ve wondered about concerns the amount of money currently tied up in derivatives and in corporate accounts that they simply can’t seem to find a use for. Is there any scenario where this huge slush fund would suddenly end up flooding into the real economy? Is there enough out there to become inflationary, or will the economy simply expand to make use of it, should that happen?
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zapster commented on the blog post FDL Book Salon Welcomes L. Randall Wray, Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems
With automation throwing a wrench in the works, I think the idea will come to life again, simply because robots can accumulate more money than they can spend, so to speak ;)
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zapster commented on the blog post FDL Book Salon Welcomes L. Randall Wray, Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems
What should be done about the enormous overhang of private debt? Obviously getting everyone back to work to be able to pay it off makes great sense, but I’ve read that private debt globally now exceeds any hope of enough production to ever pay it off by something like >50x. Obviously it won’t ever be paid, and much of it seems to be the result of layers and layers of derivative interest debt–which never was related to productivity anyway.
