Saturday, November 10, 2012
Hopeless MMTers try to explain things to Erskine Bowles
The MMTers are dumber than a crate of anvils (which actually explains how they can believe that an unlimited supply of "dollars" has solved the problem of scarcity). Their mighty leader, Mike Norman has boldly announced that the anti-gouging price control regime in New Joisy is the free market, Do they think this is going to hurt our feelings?
Now, they try to explain their bizarro views to Erskine Bowles.
"Fiat" means an order from a SWAT team. Of course, if "there’s no static asset metric that a unit of account is convertible to upon demand", the government, via its SWAT teams, is unconstrained in robbing everybody everyday all the time and transferring the loot to itself and its friends. And the MMT guys wonder why we're heading towards a surveillance state.
Simple network dynamics dictate that to make liquidity co-scale with expanding options, a growing population and economy must steadily increase fiat incomes and savings, NOT maintain buying power of the unit of account
There is no basis in fact, logic or theory as to why a growing population and/or economy must steadily increase "fiat incomes". Everyone should always be concerned with maintaining buying power of the "unit of account" or else it isn't much of a unit of account. Everyone should be concerned with increasing their real incomes. And everyone must always be concerned about saving enough to use for investments for the future.
Obviously, the government can always steal what it wants to steal by spending money into existence but even the thieves, murderers and cutthroats who run the government are smart enough to maintain some resemblance in the current system the existed in the old system so that taxation approximates what the government wants to spend and the rest is or appears to be borrowed. They are smart enough to know that the MMT proposition is insane. In fact, when average people learn that the government can spend money into existence, they will be properly appalled. The do not know this because Keynesianism, being a scam for the government to loot the masses, is intentionally confusing and obscure. We can thank the MMTers for making it less obscure.
Finally, the fact that the government cannot run out of "dollars" does not solve the problem of scarcity or create the $200 trillion in goods and services promised to all by the government. The only thing that spending money into existence can accomplish is to steal purchasing power from a victim and transfer it to the government's buyer or recipient. This will cause fewer people will invest when one's savings and property are never safe from the kleptocratic pillaging Keynesian state.
MMT is for people who cannot tell the difference between a free market and an anti-free market regime of price controls and for people who think the government is omniscient, efficient and benevolent. In other words, hopeless dolts of the amoral variety.