The Center of the Universe

St Croix, United States Virgin Islands

MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

MMT in Italy

Posted by WARREN MOSLER on August 24th, 2012

Translation:
The national launching of the book by W. Mosler – The Seven Deadly Innocent Frauds

MI – Feast of the Southern Italians (Meriondalisti italiani)
MMT Democracy
Modern Monetary Theory
To build an economy that saves lives, saves the state, and saves democracy
A state with sovereign money, legitimized by the citizens, that spends with a positive deficit for the benefits of us 99%, that is the only true democracy.
Daniele Basciu of MMT Democracy – Italy will be at the event in Vasto, CH
The national launching of the book by W. Mosler – The Seven Deadly Innocent Frauds

32 Responses to “MMT in Italy”

  1. Dan Kervick Says:

    Very cool.

    Reply

  2. Kristjan Says:

    I have the part 1 translated in Estonian on my site. So far 1126 clicks, but the country has less than 1,5 million residents and out of those about many speak Russian, so not bad.
    Discussions seem to bring more clicks :)
    http://money4nothingchicks4free.wordpress.com/mmt-teooria/seitse-surmavalt-suutut-valet-majanduspoliitikas-1-osa/
    The only argument so far has been from this austrian minded guy who agreed with most od It but said that government deficit is a burden to next generation because It leaves financial assets to the previous generation and next generation has to get those financial assets from the previous one. So unless the next generation is going to pull off the same thing (deficit spend) there is going to be a wealth transfer from one generation to the other. I think Nick Rowe hes said something similar to this.

    Reply

    WARREN MOSLER Reply:

    very good

    those financial assets aren’t a real ‘burden’ unless the funds get spent, which they rarely do in practice
    and with my 0 rate proposal interest is moot as well

    Reply

    Paolo Barnard Reply:

    @Kristjan, Wealth transfer from one generation to the next… How’s that a burden to those getting the goods, excuse me? PB

    Reply

    Save America Reply:

    @Kristjan, http://www.dailyfinance.com/2012/08/22/feds-cut-social-security-retirees-who-owe-student-debt/

    Krist, in America, old starving retirees who owe student debt (that may have got loans to help thier grandkids go to college) are now being starved to death by a reduction in their Social Security, they cannot bankrupt on these student loans. You guys are going to look to the USA as world leaders? LOL!

    Warren often asked what do we want to do with our old people, I guess send them to the dumpsters for thier food. I recommend the one behind Whole Foods market on Salinas Ave, great garlic bread!

    Reply

  3. Dan Lynch Says:

    Warren, has your book been published in any other languages ?

    Since the pdf is available online, I suppose it would be easy enough for any interested party to use an online translator ?

    Glad you’re being heard in Europe. 25% unemployment tends to open people’s minds. ;-)

    Reply

    WARREN MOSLER Reply:

    yes, Italian, about to be introduced

    Reply

  4. Piero from Italy Says:

    I read the pdf some time ago.

    It’s interesting, even if I think that it’s too optimistic. I agree that with Flexible Currency and Free Print of Money a State cannot “formally” go in default. But I believe the if Italy will return to Lira & BankItalia print to finance Debt the devaluation of Lira (may be 30% / 50% in a night) will import Big Inflation (we don’t have raw materials&oil) that on a Real base will riduce rapidly Salary & Property quite like a Forma Default.
    The advantage will be Strong Export and may recovery on the long run.
    I hope and believe in Ecb. It’s the only possibility for us.

    About the word MERIDIONALISTI (peolple of Regions of South Italy) they have high Unemployment, quite all people are Pensioners or False Disable or work for State or for Supplier of State. No real Industry. Nepotism is the rule. The only point of strenght is turism. And the criminality is quite a State Inside the State.

    In practice every years since 1945 North trasfer South 50 billion euro but is like try to fill a basin with a big hole.
    For this reason many people in North are angry to pay tax for south, and some one say it’s better to break in two nation.
    Some pessimistic say also that the Euro crisis could accelerate this process.

    I conclusion I think that first problem of South Italy it’s not economy or finace or other tecnicalities : it’s a question of mentality.
    The North Italy think of South the same think that the world think in general of Piigs.

    Hi

    Reply

    Kristjan Reply:

    @Piero from Italy,
    And nobody is giving the stuff that Italy needs to import for free. The way to go is to pay for imports with exports. Italy doesn’t need European Commission or IMF and ECB to decide how to use Its own resources.

    Reply

    Unforgiven Reply:

    @Kristjan,

    It bears repeating:

    http://www.youtube.com/watch?v=ULns-cSUeVs

    Reply

    Kristjan Reply:

    @Unforgiven,
    yeah, the oral assassin, :) too bad he doesn’t understand MMT

    Vincent Reply:

    @Piero from Italy,
    these concepts are certainly elusive. with regard to inflation, seems like that would be true. could someone comment. what’s funny to me–when the euro was introduced, a lot of people in italy were saying the process was inflationary. not sure if it actually was.

    Reply

    jcmccutcheon Reply:

    @Piero from Italy, Piero, Southern Italy sounds kind of like Florida!

    Reply

    Save America Reply:

    @jcmccutcheon, http://www.youtube.com/watch?NR=1&v=1hsDn2kNriI&feature=endscreen

    Cutcheon, world battlefields for the past 1000 years, it is part of european DNA to fight, kill, and divide.

    Reply

    roger erickson Reply:

    @Save America,

    Misleading video. Constant inter-tribal warfare worldwide was seriously neglected. Mayans, Aztecs, Incas, Haudenosaunee? Somehow their wars don’t get any respect from military historians making this video.

    ps: they didn’t feature Genghis Khan much either.

    Walid M Reply:

    @Piero from Italy,
    Just as Italy thought they were being bailed out (Not as it transpired) entering the EURO now the Northerners can send the German tax collectors to the south for tax collection (or most likely never to be seen again!)

    Reply

    WARREN MOSLER Reply:

    I’d bet a conversion along the lines I’ve suggested would make the currency strong initially

    Reply

    Chiara Reply:

    @Piero from Italy

    “The North Italy think of South the same think that the world think in general of Piigs.”

    Exactly, wrong in the same way… Good Lord…mentality? Could be they have a different mentality, but it wasn’t that the cause of their misfortune…after the unity the Savoia destroyed all industries in the south because they were too much competitive to those in Piemonte! In the south there is no highway that deserves that name, no railways….south Italians were kept poor and unemployed to serve as a buffer stock of votes for bad politicians, who always promised jobs and never maintained.
    I don’t want to justify who works for the criminality, but it’s unfair to speak about south Italians as lazy, false and criminal people.
    The North Italians are angry to pay taxes to the south because of a very stupid and deceptive demagogy, that aims to shift the people rage from the true problem to the false one.
    Chiara

    Reply

    Piero from Genoa Reply:

    @Chiara,

    interpretations are legitimate opinions
    numbers are facts = 50 Billions by 40 years from North to South

    you are free to think this astonishing number it’s a north’s sin

    Reply

    Chiara Reply:

    @Piero from Genoa

    astonishing number of what ? keystrokes? do you read Mosler because you understand him or you have a secret pourpose???

    We gave them just keystrokes and we kept them unefficient, depriving the whole nation of real wealth, and we exploited their natural resorces…it’s not a north sin…it’s a NATIONAL SIN.
    I belong to the Northern League but I refuse to eat propaganda and this rubbish. Read Mosler’s papers and open your mind.
    I’m really fed up with stupidity.

    WARREN MOSLER Reply:

    make sure you also look at real resources in addition to nominal transfers.
    it’s real terms of trade that count for ‘standard of living’

    Piero from Genoa Reply:

    @Piero from Genoa,

    Transfer = 50 Billion x 40 Years = 2000 Nominal Billions

    National Public Debt = 2000 Nominal Billions

    Hi Chiara from Stupid Peter :)

  5. Vincent Says:

    One wonders if air conditioning could do for the south of italy what it’s done for the southern US. The Italians have been very slow to adopt A/C, because “we prefer fresh air,” and the cost of electricity if fairly high. However, recently, and in particular since the heatwave of 2003, more and more people seem to be changing their thinking.

    Reply

  6. walter Says:

    Paolo,

    I am just back from 2 weeks in Italy and spent also some time on the beach, not far from Rimini.
    While having my daily piadina I saw on some days a little plane flying over with some text behind it.
    The first text I saw was ‘Silvio ritorna’ (‘Silvio returns’) (no exclamation mark so I assumed no imperative). I assumed it concerned Silvio Berlusconi.
    A few days later I saw the text: ‘Senza euro l’Italia rinasce’ (‘Without euro Italy gets reborn’).
    Then the day after: ‘Silvio, non tornare, grazie’. (‘Silvio, don’t return, thanks’).

    I think it was between the first and the second text that Berlusconi explicitly announced that he and his party were in favor of staying within the euro.

    Any link between MMT and the plane?

    Reply

    Paolo Barnard Reply:

    @walter, The guy wrote to me asking if I could come up with a few K euros to fund that air-show all over Italy. I said to him “I’d rather we spend money to fund the upcoming October MMT national conference in Rimini”. Obviously the guy was too in love with his idea and took no notice of my advise. Too bad. His air-show was a waste of time and money. PB

    Reply

    WARREN MOSLER Reply:

    not by me!

    Reply

  7. giovanni zibordi Says:

    the guy that paid for the little plane flying over with some text behind it.: ‘Senza euro l’Italia rinasce’ (‘Without euro Italy gets reborn’) is a friend of mine and a blogger, that Warren knows, Giuseppe Trucco http://www.truccofinanza.it/
    he was also with Warren and me in Rimini the second day of conference, talking about investments in gold stocks, Warren told me he seemed competent after hearing it…but he has nothing to do with the other thing about Berlusconi

    He paid for the plane to fly as a patriotic duty…wanted to do something….

    Reply

    Save America Reply:

    @giovanni zibordi, http://www.youtube.com/watch?v=AyfvrXIegiE&feature=related

    Giovanni, Nigel Farage flew a plane with a banner too, but he almost died… I think your friend had the better idea, let someone else fly the plane.

    http://www.youtube.com/watch?v=muw0DGI_DIs&feature=related

    Reply

    WARREN MOSLER Reply:

    Yes, say hi for me!

    Reply

  8. RyanVMarkov Says:

    MMT in Bulgaria. Not yet but the author of this caricature in a major daily Bulgarian newspaper got the EU problem pretty well.

    http://www.segabg.com/article.php?id=613970

    Reply

  9. Security Guard Class 4 Says:

    France listen to Warren Mosler, start Jobs Gaurantee Program, make Romney/Obama look silly.

    http://globaleconomicanalysis.blogspot.com/2012/08/france-to-hire-150000-subsidized.html

    The French Government has today adopted a draft law providing for the creation of 150,000 subsidized jobs for young people with little or no qualifications, which are most affected by unemployment and employability harder.

    The beneficiaries of these so called “jobs of tomorrow” will work for municipalities, hospitals, schools, social organizations, associations or, exceptionally, in private companies, and will receive a grant of up to 75% of their compensation.

    The estimated cost is 500 million euros in 2013 and “more than 1,500 million” next year by the state budget, said Labor Minister Michel Sapin, at a press conference.

    “We want contracts defined privilege” said Sapin, who nevertheless admitted that the storms are also accepted, and said that public support will be maintained in each case between one and three years, provided that employers provide a “accompaniment” to “very great difficulty youth push” to which they are targeted.

    He insisted that the “accompaniment”, which may include training for classical channels is “fundamental” to the 500,000 eligible people likely to have between 16 and 25 years, lack of skills and work.
    Read more at \

    Reply

  10. Piero from Genoa Says:

    for MOSLER from Italy

    Untill more or less ’80 the Debt reach 60%, and bond was bought in grat way form BankItalia..
    in practice the Industrial North worked for South, and the South payd products with Liquidity Printed from BankItalia.. the channel was on the form of excessive Public Salary & Pension & Public Contracts.. this policy was accompany by increased of gdp, employment, inflation over 10%, week Lira Currency (strong export and imported inflation from commodities). This National scenerio was built inside an International growth that helped the internal performance.
    Private North became more Rich and 33% of Sales come from Southern Customers that payd with Public Money. Of course this is a semplification , but with a good degree of reality.

    To put a stop to the Public Spending (the Debt Doubled form 60% to 120% in 10 years) BankItalia was stopped to Finance State => so on one hand the Increaseing of Real Public spending suring ’90 & 2000 was slowing down, the Interest on the Private Market (instead of BankItalia) was higher with bad consequence on the dinamic of public debt, and last but not least the Gdp stopped.
    Of ocurse also the International scenerio changed in bad.

    On a Theorical Point of view I agree with Paolo Barnad, an Italian MMT suppotter, that say that when State lose the Power of Print Money they lose both Wellfare state & may Democracy. Central Bank now give money for 1% to Private Bank the lend money to State for 4% => 3% of Private Gain = Extra Cost for Public.

    But in Practice in Italy there is a Problem of Geografical Distribution of Real Labour => now are 50 years that Private North workers produce for South Workers.

    Transfer = 50 Billion x 40 Years = 2000 Nominal Billions
    National Public Debt = 2000 Nominal Billions
    This is in the number. It’s not opinion. It’s facts.

    Too many nepotism int the south had sleeped the willingnes to do. The south politician have bough votes with public spending. Sorry this practice are truth also in North, but in the South this phenomenon is objective the double or more.

    A good Tecnincal Management of Money (MMT) cannot mask or substitute a Real Painfull Geographical Adjustment.

    Hi
    Peter

    Reply

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>