The MMTers are in a giggly mood because Greenspan said this:
“Well, I wouldn’t say that the pay-as-you-go benefits are insecure, in the sense that there’s nothing to prevent the federal government from creating as much money as it wants and paying it to somebody. The question is, how do you set up a system which assures that the real assets are created which those benefits are employed to purchase.”
Bob Wenzel reports that German officials are worried about U.S. debt levels:
It's not only German officials who are concerned with [U.S.] debt levels. Former senior finance officials in the U.S. have indicated grave concern to me about U.S. government debt levels. Major inflation or default are the only two ways they see out for the U.S.
But for the MMTers, all such problems are easily AND painlessly solved because the government can never run out of “dollars”! Only “morons” worry about from where the actual goods and services will come.
In response, Dan Kervick demonstrates his deep understanding of economic calculation and the pricing process plus how fiat funny money creation and government spending distort that process [not]:
One part of the MMT answer to Greenspan's question about the creation of a sufficient amount of real assets is to insist that we should always hire everyone willing and able to work, so that they are usefully producing useful real assets, rather than remaining unemployed.
The private sector system [emphasis added] foolishly misallocates large numbers of our people to the role of non-producing consumers of subsistence incomes. This system is both stupid and cruel. It's a ridiculous failure to invest our human resources wisely, and a savage failure to provide social solidarity and justice.
Tom Hickey simply exclaims that MMT shows how the economy operates optimally:
Bob Roddis, "That's the big question your silly MMT cannot answer, isn't it?"
Greenspan's could have been said in exactly the same words by any MMT proponent that understands MMT. The real resources will be available if the economy operates optimally in resolving the trifecta of growth (production) employment, and price stability. MMT shows how to accomplish that. [WHERE DOES IT SHOW THIS?]
And Roger Erickson employs some passive [aggressive] language to announce that the government will have to continuously monitor everybody and everything all of the time to make sure that no one is “hoarding”, the MMT term applied someone to trying to save some more of his earnings than the secret MMT police might allow.
Excessive or insufficient hoarding of static, financial assets, unused or poorly used are the simple tolerance limit we're tasked with avoiding.
I pointed out that none other than Hayek has said the very same thing almost 40 years ago: "No country can go bust!" But they naturally ignored that point.
Hayek: "No country can go bust. All that happens is that economic conditions of daily life are getting much worse, so there will be scarcities. People will find that their income is no longer sufficient to maintain their standard of life. They will come to distrust first the present government and present policies, and may then be willing to return to an altogether different system. But I'm no prophet;
Aren’t you glad that the MMTers explained where all the stuff to pay the debt will be coming from? And aren’t you glad they showed us their deep understanding of economic calculation?