There is a Paradigm Shift Now in Progress

We have been through this - I claim that your bar is absurd. While the claim money is constrained only by resources is quazi correct - This does not quantify a meaningful bar - at which the deficit spending is out of control - and starting to impact the markets.

Indeed I have claimed the above - so you are incorrect - with stipulations all given previously.

Do you realize this is the third claim in a row that you have attributed to me that has turned out to be - not me ?!

I understand you have a point that you want to make - but your listening skills are poor. You need to get a better understanding of the arguments I have been making and quit making up what you think I mean - and getting it wrong.

There is nothing above I disagree with - and in fact rather than inflation - we may see deflation - something that we are historically way way overdue .. and that's not a good thing.

 

OK...a few things remaining to clear up.

1. You think government must tax or borrow in order to spend.

Is this a correct statement of what you think? (You know I think you are wrong, as explained by the sovereign CIC, in MMT).

2. Re your statement: "your bar is the equivalent of "money grows on trees".

.....But now, since I have definitely placed a limit on the bar, ie, unemployed and available resources being the necessary condition before government can use its CIC to increase the economy's money supply...….

have I shown you by now that you are NOT entitled to make that statement (underlined by me above), since you have apparently given me a pass ("there is nothing above I disagree with") re my long explanation of how government (unlike private citizens) can rely on its own "money tree", in certain conditions, as outlined above.

Re inflation/deflation in the current pandemic:
government can manage demand in the 'essential' economy by creating the amount of money required by jobless citizens to cover costs in this much-reduced 'essential' economy, thereby avoiding inflation, because the food supply, for example, can be maintained to meet demand.

OTOH, the swathes of the economy that are temporarily made idle (by a virus- imposed 'hibernation') need not cause deflation, because those sections of the economy are not trading at all.

.....See the flexibility with which MMT empowers government to deal with any demand and supply situation.

Addressed above.

[And while deflation is said to be bad for debtors, because the real value of the debt increases over time, that does not apply to creditors....)

 

These viruses don't walk across the border by themselves.

The Tide Pod generation learns about germs.


Wayne Dupree

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waynedupree.com
12:03 PM - Mar 24, 2020

The hard way.

 

"I told you so. You damned fools".--H. G. Wells desired epitaph. Wells was an English socialist.

A reader of Wells' books, Winston Churchill wrote to the author in 1906, "I owe you a great debt", two days before giving an early landmark speech that the state should provide its citizens with government pensions, health insurance, and child welfare. Thanks Winston!

 

Good thought provoking post. But an alternative view could see that the shift is not spontaneous but planned and carried out by aristocrats that bend the gears to create outcomes. The power brokers that own the money in the banks, the oil in the ground and the electricity in the wires could see a global pandemic as a panacea for individualist thinking, innovation and Darwinist principles.

 

Would you mind expounding on your alternative view that this is planned?

 

Save us the paranoid conspiracy nonsense.

The fact is...this is a world changing event. That's NOT something I relish...in fact it scares the crap outta me...but it's the reality.

This may be as devastating as the Great Depression...depending how our government deals with it.

 

I have arrived.

DEEP THOUGHT mode: engaged

 

It's my opinion that people haven't come to understand what this is going to mean for the world. Yes, a paradigm shift has nearly instantaneously occurred. Why are we losing against this pandemic? It's because we never imagined it could happen to us, it's a simple as that. And there are still many people in denial.

My son flew from Colombia, S.A. to Ft. Lauderdale to New York 10 days ago. The TSA agents had no protection at all, neither gloves or masks, the ticket agents had no masks. Same thing with every person in the airport at Ft. Lauderdale and landing in NY. The TSA looked at him as though he was a terrorist or just crazy because he had a cap, mask, gloves, and a jacket that covered his arms and zipped to the neck.

In the past 14 days, there have been 51 TSA agents that tested positive for coronavirus. In addition, 20 non-screening employees are also positive. These TSA agents are from airports all over the country. At the time they acquired their infection, this country was already in full swing and on alert, masks and gloves and hand washing was being repeated to the general public over and over, yet these federal employees never go the memo I guess.

This illustrates my point. https://thehill.com/policy/transpor...arm-over-coronavirus-screening-at-us-airports

'Americans who have recently returned to the U.S. say they have received little or inconsistent guidance from airport and government officials about self-quarantining and social distancing, raising concerns about coronavirus screening practices at transport hubs.

The experiences described by travelers, coupled with the federal policies in place, put the U.S. at odds with many of the precautions other countries are taking to limit the spread of coronavirus.

Health officials who have been setting guidelines for Americans in the U.S. say there are still risks of more cases being brought into the country.

Travelers who spoke with The Hill said that their return to the U.S. raised concerns about how the threat of coronavirus spread is being handled at American airports, where people can be in close quarters for extended periods of time.

Americans returning from Peru — after being under strict quarantine since March 16 — described how everyone at the Peruvian airport, including staff and travelers, was wearing masks, making the arrival in the U.S. all the more surprising.

“We went through immigration services [in the U.S.], the guy who processed us wasn’t wearing a mask, but we were,” Tina Kuo, who returned from Peru through Miami International Airport, told The Hill.'

This has been my concern since that trip I took to NY to pick up my son at the airport. And still, it hasn't changed. How can we possibly be so collectively stupid?

 

To be perfectly frank it is the Arrogance of Ignorance that makes us this way. When we go around claiming to be the "greatest" while ignoring all of the aspects that are subpar we set ourselves up for this to happen. We have been disparaging and underfunding the education of our own children which then becomes a handicap for them to compete for STEM jobs that is the foundation of our new technological world.

Yes, we do need to take a good hard look at ourselves and our values. Why is it that we consider the greed obsessed wealthy billionaires to be our role models for success while we allow them to steal the future of our own children and grandchildren? The answer is that we have abandoned our critical thinking skills and replaced them with mindless entertainment from a gazillion different sources of cookie cutter "shows". We live in air conditioned bubbles and elect grasping shysters to represent us because we are incapable of thinking past their Confirmation Bias Pablum.

We are so collectively stupid because we allowed ourselves to become complacent by believing moronic platitudes about "American Exceptionalism".

Hopefully this Paradigm Shift will be the wake up call we need.

 

In this particular instance anyway, it appears that democracy has failed.

 

No, conservatives like to go out into the woods to a secret bunker just for recreational purposes and test out the rifle and send coded messages to each other here on the PF like this one I’m sending now

 

The end of globalism.

 

I called a relative of mine in the Mid-West, and I asked how they were doing. They answered, "We're not going to make it." I tried to encourage them.

 

From a tweet by Mariana Mazzucato, UCL Professor, Director of Institute for Innovation & Public Purpose. Author of 'Entrepreneurial State', and 'Value of Everything':

"I am deeply honoured that the Pope has read my book 'The Value of Everything: making and taking in the global economy', and that he agrees that the future – especially post-COVID19 – has to see a re-prioritisation of ‘value’ over ‘price’

eg transition from wealth creation via guns and grog and junk consumerism, to wealth creation by caring for people and the environment, via education and public infrastructure.

(MMT's observations re the currency issuing capacity of sovereign governments are apposite).