So what do yall think the new currency is going to be?

[Grizzly]

WEF 2.0


https://www.youtube.com/watch?v=Z9gCw2ou6Sc

Every year, elites at the World Economic Forum gather to plan the future without our input, and they don’t just do this in the winter in Davos. They also do it in the summer, usually in a major Chinese city.

‘Annual Meeting Of The New Champions’ focuses on the individuals and institutions that will take the reign from the old guard at the WEF once they retire, like Klaus Schwab recently did.

This so called ‘summer Davos’ didn’t get much media coverage, so we figured we’d do the journalists a favor and dig deep into everything that was discussed. Spoiler: it will shock you. Enjoy!

And you thought they failed or gave up...

Prolly cud post this under several threads...

[Elvis]

according to MMT, if the right academic walked in there, elbowed out the idiots and partisans, and flipped the correct switch, every ailment would heal. is that about right?

No, absolutely not. LOL. That's the silliest thing I've ever heard.

Fiscal policy is not "flipping a switch."

There is no final solution to the economic problems of life. (Minsky)


This is the kind of idiocy that needs to end:

interest costs threatening to consume a dangerous share of federal revenues, the Fed may find itself boxed in. It’s easy to imagine a scenario where bond yields spike further, financial conditions tighten, and the Fed is pressured to step in—not to fight inflation, but to ensure the government can keep borrowing

I'm tried of explaining over and over that taxes never pay any part of Treasury bonds.

Copy this down and put it on your refrigerator door: Taxes never pay for Treasury bonds.

Issuing Treasury bonds is not a borrowing operation. It's money creation.
Issuing bonds when it spends is entirely optional for the government.

MMT is a dream

MMT is a description of the existing money system. It's how money works now.

[Elvis]

.
My primary objection with this presentation of MMT/similar policies

MMT is not a policy. MMT is a description of the money system.

Power relationships are the realm of politics—not MMT.

Your objection is invalid, based on a false premise.

[Elvis]

https://www.zerohedge.com/geopolitical/war-debt-distraction-hidden-collapse-behind-iran-hype


*Banks no longer need to reserve as much capital when holding or trading US government debt, making banks dodgier than they already are.

*They can now soak up more Treasury issuance without showing increased risk on their balance sheets

Zerohedge is clueless.

Treasuries are part of bank capital. (Do they even know what bank capital is?)

Treasuries are risk free. Again, Zerohedge is clueless.

the Treasury market, the backbone of the current financial system, is now so fragile and overburdened with issuance that it can no longer function without regulatory distortion.

Complete nonsense.

Yields are becoming increasingly unhinged from real risk.

What risk? Be specific.

A zero policy rate would end yield curve problems.

* Emotionally spike public attention away from the fact that the US is suffering from domestic insolvency.

What insolvency?

They’re not trying to hide the debt anymore.

What does this even mean?


Reading Zerohedge will fuck you up.

[Elvis]

https://www.zerohedge.com/geopolitical/blackrock-fidelity-collusion-uk-government

From our analysis of the outlook, by the end of this year, the volume of G7 government debt issuance will be rising sharply. But worse than that, the theoretical underpinnings of tax receipts are already going into reverse, meaning that government debt and its interest cost are rising at an accelerating pace while the tax revenues to fund them are contracting.

Such bullshit. Throw that trash away. It's pure arm-waving. I should ban it. LOL

It is the classic definition of debt traps.

No it isn't. Zerohedge morons.

Banks pay for Treasury bonds with reserves.
Reserves come only from the government.
That means the government is self-funding.

This is desperate stuff....

Zerohedge must be desperate for clicks.

Above all, this is the end game for fiat currencies.

Complete nonsense. Arm-waving. Wishful thinking.

who it is that's showing up everyday to buy these bonds?

It doesn't matter who buys or holds the bonds.

who is it raking in that 100 billion a month in interest?

Rich bond holder are raking it in. That's a problem.
The solution:

1. Keep the central bank rate at zero.
2. Stop selling bonds when spending.

communism (a pejorative catchall term that i use for all authoritarianism)

LOL. Just say authoritarianism. Don't be lame and misuse a word that way.

communism is extractive, trending the subjects toward subsistence.

You mean capitalism—extractive, trending the subjects toward subsistence.
Just look around, it's the outcome of capitalism.

the government is the economy. it cannot quit borrowing even for a moment, or everything goes boom.

The market economy starts with government spending. The government could stop issuing bonds (it's not "borrowing") any time it chooses.

and they will have to tap the banks to do it.

No, this is preposterous. For one, it would never be needed. The very thought is a joke. Why?
The goverment issues the money that banks use. Not the other way around!

Bank lending cannot "pay for" federal deficit spending.
Banks cannot operate without government money.
The government can operate without banks.

big government anybody?

Big Finance, anybody?


75% of the US financial industry needs to be drowned in the bathtub.