Saturday, August 8, 2020

But only for a week during negotiations

If the country embraced MMT, there would be massive concerns with cronyism as politicians would be unleashed to give virtually as much money to their friends as possible. There will be a populist tug of warover the printing press..

MMT is more like a national bankruptcy without a real bankruptcy judge.  

The elders have to meet and sort out losses and gains to get a default figure. It is the resulting Fed contract that wins or loses the game. After the MMT bankruptcy comes a New Fed contract. Just improving that a bit recovers much of the 2% indirect default inflation.

What the poster really reveals is the very uncertain ability to gather six small state governors with IQs above room temperature.  Nothing works without those smart governors. It is the fundamental problem and getting worse. My message to Nancy and Schumer, put cash in equal amounts to each state capital before negotiating a budget. Then your bills are not complicated by the skew problem, the state scale problem. Multipliers may actually go above one.

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