It’s been that kind of week.
The range of possible outcomes seems to keep widening?
Since the EU seems clueless about Monetary Sovereignty, we can’t expect much to come of any summit.
On my blog, I award pictures of dunce caps for economic ignorance. To date, this year, I’ve awarded 49 dunce caps, and since I’ve not yet collected any dunce cap taxes, I’m running a 49 dunce cap deficit. My question to the EU, IMF and the U.S. Congress: Is this deficit “unsustainable” and “imprudent”? Need I institute austerity and tax the recipients?
Rodger Malcolm Mitchell
Gary Reply:October 20th, 2011 at 3:11 pm
@Rodger Malcolm Mitchell,
if you could tax them in dunce caps, then dunce cap would become a currency :)
Maybe you could buy their opinions for dunce caps then ;)
Then their opinions would become economically smart and then they would not deserve dunce caps…
Taxes change everything, even purpose of dunce cap…
Rodger Malcolm Mitchell Reply:October 20th, 2011 at 5:36 pm
Based on money-related comments from Nobel-winning economists, my dunce cap deficits are “unsustainable” and a “ticking time bomb,” and I must begin to live within my “means.”
I could “borrow” dunce caps by creating Dunce-securities, and then trade those D-securities I created for the dunce caps I created.
Not sure what that would accomplish, but if the federal government does something quite similar, why shouldn’t I?
Gary Reply:October 21st, 2011 at 12:58 am
and then you would have to pay interest on your Dunce-securities with more dunce hats, so dunce hat holders would have more and more of them. Rentier income of dunce hats :)
And then your deficits would get larger and larger, and Dunce-securities holders would be scared that their rentier income would cease, so they will keep asking you to increase dunce hat taxes, but not on them, but on those who have little or none dunce hats. So those who have none would start serving those who have them.
This way dunce hat owners would rule over the rest.
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Warren B. Mosler