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

mike again

Posted by WARREN MOSLER on December 31st, 2012

One adding mis speak but otherwise good stuff!

14 Responses to “mike again”

  1. potemkin village Says:

    This guy is a borderline lunatic. Go onto Youtube and type in his name. He was also unfortunately yelling a few years back about how real estate was sound and not going to fall nationwide. In a few years time he will be declaring a war on jealousy and hawking lava lamps on an infomercial.

    Reply

    WARREN MOSLER Reply:

    that was before he knew me…
    ;)

    Reply

    Ed Reply:

    @WARREN MOSLER, funny!

    and let’s not forget, it’s ok for people to change their point of view or what they believe, when they become enlightened by new information. new information which either they were not aware of or through recent development.

    The problem arises when people refuse to accept facts because it doesn’t suit their agenda or they hold so tight to a belief based on emotion, they can no longer process anything the would conflict with their emotion.

    separating fact from emotion can be a difficult thing for a lot of people. sorting through people who twist facts can also be tuff.

    Japanese call it Kaizen – continuous improvement!

    Reply

    Ed Rombach Reply:

    @Ed,

    Talking people out of their deeply held beliefs is like trying to talk them out of their religion. Not an easy task. Entrenched belief systems tend to die slowly… one funeral at a time.

    Ed Reply:

    @Ed, ed r, good point. being a fan of history, your comment made me think of the movie Lincoln. Watching such a heated debate over the abolishment of slavery was scary. To your point, those against the 13th amendment were so wrong about the issue, but were so entrenched in their belief, that they refused to acknowledge the inhumanity in their opposition.

    i hope Spielberg makes a sequel and covers the debate over greenbacks and removal of the gold standard for the first time….:-)

    happy ny

  2. walter Says:

    Yes, somehow he makes that ‘adding mis speak’.
    A 1% positive current account balance and 10% fiscal deficit gives 11% surplus for the private domestic sector, not the 9% he mentions.
    Pity, it may leave Kyle puzzling on New Year’s eve…..

    Reply

    Ben Johannson Reply:

    @walter, I don’t hold it against him, I make all kinds of mistakes when speaking off the cuff. Still, one gets the impression Mike does only one take and doesn’t edit.

    Reply

  3. Andy Says:

    Mike Norman is probably one of the best outlets for speading Modern monetary theory, Modern Money theory or MMT ME. He can communicate. Happy new year !

    Reply

  4. Senexx Says:

    On speaking of a person’s character, ask yourself are you the same person you were 10 years ago or did you learn, develop and adapt? What about the 10 years before that? What about when you were 10?

    Live, Learn, Adapt, Develop

    Reply

  5. Ronald Doan Says:

    Mike introduced me to MMT amd has a lot of passion about whatever he believes in. I think his passion sometimes works against him. His site has been taken over by the fringe.

    Reply

    Mephisto Reply:

    @Ronald Doan,

    Passion is a good thing in my book. You need passion to lead.

    Reply

  6. Daniel Silverstein Says:

    Claiming that Japan cannot default on their debt voluntarily is not necessarily true. There is a limit to how many Yen Japan can print without effecting the value of the currency. The value of the currency matters.

    If Japan’s revenue from taxation is not sufficient to pay the interest on the debt, they either need to print sufficient Yen to make up the deficit or default. Either way, the bond holder suffers. The more they need to print, the more pressure they put on the value of the Yen.
    Ask yourself if you would be a buyer of Japanese debt. If not, why not?

    Paying off debt with a devalued currency is not much different than settling for $.90 on the dollars that might occur in US Corporate Bankruptcy Court. Default and devaluation are just different sides of the same coin.

    Reply

    Ed Rombach Reply:

    @Daniel Silverstein,

    Right, solvency is never the issue for countries like the US, Japan & UK which can issue debt in their own non-convertible fiat currencies which they can print in unlimited supply. However, too much money printing can be inflationary which some would call default by another name.

    Reply

    WARREN MOSLER Reply:

    you need to read the 7dif and mandatory readings as well.

    making interest payments on ‘the debt’ or ‘paying it off’ doesn’t alter the value of the yen.
    spending might, but not just crediting accounts at the boj

    Reply

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