The Center of the Universe
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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.-
MMT: Taxes function to regulate aggregate demand, and not to raise revenue per se.
Warren’s Book:
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"The most important book ever written" -Elizabeth O'ToolRecent Posts
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The funds to pay taxes and buy government securities come from government spending.
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July 22nd, 2010 at 1:43 pm
[...] Counter Insurgency, Deficit Terrorist Unit 5. Report back to headquarters for [...]
July 30th, 2010 at 8:53 pm
I didn’t post a comment but I did send the following message to the Editor at Mother Jones In response to a Kevin Drum blog about Taxing the Rich (which like him I used to be in favor of but now realize it won’t solve the immediate problem)
“With regard to Keven Drum’s blog “Taxing the Rich” I just don’t understand why Mothor Jones continues to channel and provide cover for Wall Street, the Bankers and the either ignorant or dishonest economists that missed the recent credit collapse. Especially when another view is available.
Modern Monetary Theory (MMT) is a progressive viewpoint that supports our goals and aspirations including full employment.
According to Warren Mosler and others including James Galbreath
The funds to pay taxes and buy government securities come from government spending.
1. Government $deficit = non government $surplus (net financial assets)
2. Operationally, government spending is not inherently revenue constrained.
Any such constraints are necessarily self-imposed.
3. In the banking system, the causation runs from loans to deposits, that is,
‘loans create deposits.’
4. The Fed is the monopoly supplier of net reserves to its banking system, and,
therefore has no option but to set at least one interest rate.
Furthermore according to them this isn’t theory it’s simple accounting.
Please check out Warren’s web site and start supporting something that will help get America and its unemployed back to work.
http://moslereconomics.com/”
http://motherjones.com/kevin-drum/2010/07/taxing-rich
Although I think comment sections have too much noise I will post the above there as well.
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July 30th, 2010 at 9:08 pm
This one is over my head but I suspect it is misleading or wrong so I think somebody needs to send an email to Politifact and contest the implications for finding the following “true”
“Today almost half our debt is owned by foreigners.”
http://www.politifact.com/texas/statements/2010/jul/30/jeb-hensarling/rep-jeb-hensarling-says-nearly-half-us-debt-owned-/
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Tom Hickey Reply:
July 30th, 2010 at 10:13 pm
This is on the level of the frenzy that took place when “the Japanese” bought Rockefeller Center. The proper response is, so what?
Foreigners hold a lot of US financial and real assets in a variety of forms. Just shows that the $ is in demand and that the ROW desires to participate in US finance and the economy.
People think it would be better of foreigners didn’t want to touch the US$ or US assets? Or may they think that the US should keep foreigners out of US financial markets because they purchase too much? I don’t get the point.
The article points out that depending on whether you just count tsy’s or include agency debt, it runs from 30 to 46 %.
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