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What I don't understand is how MMT can be simultaneously a progressive approach compatible with socialism and also a good strategy for capitalist survival. Mike Roberts seems to have similar misgivings. I think these may have been posted here before but seem pertinent to this discussion. https://secure-web.cisco.com/1Wqew6QP9O2Ek8dFTiizOrSlxRFkpSDcl30AoiY2WcRBgyH6-IZEe4u7bYBX5Xp2GgSAFiyQznAdoWWMyst3HXRW6CwyMzx_tVX3LvXT8e3E1FCmoW3uzom92SIDVxZUGPQWtGa5oYoKuoEeWKtRI1DvPzdoj-iLbIHK26edovgzDl4naJrPteHE7jXvUC33bHGK3IrFi7o6nd7tKudmsAfu_Xh7fs9wBiWaoU0cWXL4bwAvs1cAxKtQtrmCvUM8O5OMihhJYx-s4VxB_0ZUnyJ-1TdmwOoSUmGu0vk6uGj0dcjkrvHJwisksoVQT-mmtu4QCMRD_mjcZGaR6vCTShvkfDvZqalURBw2NurRn_CRWb8PoRYjODfFJjoe6auXn/https%3A%2F%2Fthenextrecession.wordpress.com%2F2019%2F01%2F28%2Fmodern-monetary-theory-part-1-chartalism-and-marx%2F https://secure-web.cisco.com/1sZmYPmpVFYeL8bvtQ4xSih0Qmdw_yYtiKD1qb9uFxrswfWEPJQ_T7puAA5OITJuU3Cd4bx6v2nPxLhaDpnvTEsa4Fhu938EBos4L1-83qrnk0bfDYAAi8jzXoeKJgXXlLtrlQZGSq05rRQ0rf5NT9WWtVwMX6znDPBH8Fcev9RgNf02RxTcGDEDCirSrVn_Yd0jTmDMLeH-0soCNbtSdmdM6utx8gFiomtpTGcdbyje8cuTLIdB8cC_nS0Z146g7KelGsCA8jAvdbAR3xXhcGRe3JZU4zVDV2Ph2zpqjU7x5JlsuUon8NEpKDIuN7tFvzfcGhL0UHwynWbmtsihEbSnpQQWQg9kl0YQqYyu0HEJAmxJeE8UXHqAFRMboNshs/https%3A%2F%2Fthenextrecession.wordpress.com%2F2019%2F02%2F03%2Fmmt-2-the-tricks-of-circulation%2F https://secure-web.cisco.com/1fDk08lfT8sc-cCnad1linEIeiyJELkx87wj31mVacm6YaGcp3KaIjEM23phQQpZihA_2ls9YiSlgkP_g2asWyPkba17hjhDRbvpDrsFl4H-rgpnehErZXd54RUF2s26nCBVr3HxjVfzYoclic8mSAT3wqRwSRFHDighlcZmytkwqTmETJWOjmyKhFQfm3zxmFa8dpl48O0dTGBnt_IR9IQw2SglZXwn6bQM_cJWAauz5yb8IlBzcfdQQtzWESc8k9HbSmO4DZ6GJL2yyBF9vroxSFE17cP4npqrTYAVG0p2DkftTB_Mdd1A_1LtIu7C0_m11gvWcn1-mdfmZSDg0YXGWC41cxDv5f8QkhTy0INuH4S6B8Ru-nukIBPdHsEaf/https%3A%2F%2Fthenextrecession.wordpress.com%2F2019%2F02%2F05%2Fmmt-3-a-backstop-to-capitalism%2F I'm not an economist but this does seem a pretty convincing argument from a Marxist economist. Cheers, John On Tue, Apr 21, 2020 at 1:47 PM MM via Marxism <[email protected]> wrote: > ******************** POSTING RULES & NOTES ******************** > #1 YOU MUST clip all extraneous text when replying to a message. > #2 This mail-list, like most, is publicly & permanently archived. > #3 Subscribe and post under an alias if #2 is a concern. > ***************************************************************** > > > On Apr 20, 2020, at 9:09 PM, Louis Proyect <[email protected]> wrote: > > > > I'd be willing to read something written by an MMT proponent. > > I’m almost sure you don’t realize how that comes across. Almost. > > > I used to be in contact with Nathan Tankus but lost touch. > > I posted the link to Nathan’s new substack website earlier; it’s here: > https://secure-web.cisco.com/1zq0d1FMyn7KjXIhIKmd1Mp0PjL569ugItSKDAxlhemzmBef7CyghKWdfrLIvnft0u2Vin4L38ThsNwYWWHpj56C6xZulkCf7I4ATHti9Oof2K3miZn6BZCppFrCOpgBqbgVTWCSExJPYC28T5TcZqGIEsuxh0BdUcTiRD-njl9xXVA_Q3JhEBc5Z5NBLXZCkKE90fXUyZIEuvD9KM0H4D9qY2JTM5BVYLY1Orxof0zsQPjwK5rYdPJflAELZQr4F9PlkNkQHcFsg-46HRvgK5h7zPDxN6PTieFoLmwHyBuThcltV34dBewNRFCkL0abCEATAZMyc78QB1Opx0B-t4HEvrJ-kqCT0o_vbe1IT2Ny5oG2mnMfL_KoYL7q6M7lJngJ2vBVqwwYZf1dYSfgWEQ/https%3A%2F%2Fnathantankus.substack.com%2F > > > Much of what I've heard about MMT seems geared to G7 nations. > > > The first thing you say here is a nearly universal misunderstanding based > on a simple failure to use Google. The podcast I posted is the best single > source I know of, and frankly I don’t have a lot of patience with anyone > who isn’t willing to listen to it. Fadhel is incredibly busy — he gave more > than 400 presentations last year alone, in dozens of countries. > > > If it was so easy to lift a country up by its own bootstraps, it seems > made to order for the global South. Right? > > Who said it was easy? This is a stupid, ignorant comment. It’s beneath you. > > > So, why hasn't it been adopted universally? > > Believe it or not, we’re working on it. This is from South Africa, less > than 24 hours ago: > > Former Treasury official Donaldson says Bank can buy up to R20bn of bonds > a week > > Current shocks to global and domestic demand mean inflation is not an > immediate concern, says former Treasury official > > BL PREMIUM > 20 April 2020 - 05:10 Lukanyo Mnyanda > The Reserve Bank should scale up its bond purchases to as much as R20bn a > week to help reduce borrowing costs for the government as it seeks to fund > emergency measures to deal with the Covid-19 crisis, according to one of > the economists briefing advisers and officials in the presidency. > > That would be a major escalation in the use of the Bank’s firepower after > deputy governor Fundi Tshazibana < > https://secure-web.cisco.com/1Jl7nxYZlYQ-peWx3SyheHtPPU26bxOOaB2xb8SEhdO9xb133d5Z9ZnskRjjW6MWOihuyO-pgO3o5K3sXgg6Nh2EBOGOqRPAg6lDEwI83O9pe5pjst4nUBzpz-1w0obbLaN31z2--QvuxaFFLojEZv83IQ1IQ_-tWMv9fSISrCTIcSgzJ8ssWmo3NAy0fkwEk5v7CdjkRh-XnOrnKQ0At_g1p_9MmsnGIfSUx5Bu43nHXE7j7LifzntmMYov9xOisfipaS1lLGXLkSmukwRyAM05nJewzG3V5mxDDmtuYb89YnY--0JCjHX80DGfVeKDNGp1lgcsM8xdhr6OmINUsL8lT37QuodYN6LgDg50D5wAgp5pxBOcWpdmzinG-KJTR/https%3A%2F%2Fwww.businesslive.co.za%2Fbd%2Feconomy%2F2020-04-07-reserve-bank-bought-bonds-worth-r1bn-in-march%2F> > told Business Day on April 7 that it had bought about R1bn of > government-debt securities the month before, a relatively modest number in > a market valued at about R2.5-trillion. The Bank announced its programme on > March 25, after identifying market dislocations that pushed bond yields to > record highs. > > Such an aggressive show of force, mirroring actions by central banks in > developed economies that have exceeded interventions during the great > recession a decade ago, would reduce market stress and shift market > expectations towards lower long-term yields, according to a paper written > for the government by the University of Cape Town’s Andrew Donaldson. > > Current shocks to global and domestic demand mean inflation is not an > immediate concern despite the sharp depreciation by the rand in 2020, he > said. The rand, which started the year at about R14/$, has slid about 25% > to nearly R19/$, though the potential effect on inflation has been > countered by the collapse of oil prices and economic activity. > > Donaldson spent 20 years at the Treasury before retiring in 2017. The > group of economists supporting efforts to come up with measures to mitigate > the economic impact of the coronavirus outbreak includes another former > official, Michael Sachs, who has headed the Treasury’s budget office and is > now an adjunct professor at Wits University. Sachs has argued for fiscal > stimulus to deal with the health and economic crisis arising from Covid-19. > > The Bank, which has slashed its repo rate by 200 basis points in two > meetings since March, has resisted pressure to undertake wide-scale money > printing to help reduce government borrowing costs at a time when already > elevated borrowings costs were raising questions about its ability to fund > itself. > > The Bank entered the bond market after 10-year yields spiked to close to > 13% late in March, though it insisted this was not quantitative easing as > it was not meant to influence prices but rather to restore market liquidity > and efficiency to ensure sellers could easily find buyers. Yields have > since eased back to about 10%, a level that is still seen as severe and > unsustainable given that inflation is well within the 3%-6% target range. > > After the Bank cut rates on April 14 governor Lesetja Kganyago rejected > suggestions that it follow its counterpart in the UK and fund the state > directly through so-called monetary financing. That step was unnecessary > because the government has no trouble funding itself in open markets, he > said. It would also be illegal and in breach of the Bank’s legal mandate. > > Even before the coronavirus outbreak government borrowing costs were > heading higher due to a weak economy and failure to consolidate spending to > arrest a deterioration that was set to push the deficit as a proportion of > GDP to close to 7%. > > With the economy expected to shrink about 6%, according to the Bank, and > the government under pressure to ramp up spending, concern is mounting that > capital markets will be unable to absorb increased debt issuance to fund a > deficit that some economists said could climb above 10%. That implies much > higher borrowing costs for a government that is already spending 15% of its > revenue on paying interest. > > Donaldson said international experience showed that to restore order in > the markets and reduce borrowing costs, actions by the central bank need to > be substantial and pre-announced, to boost confidence and change > expectations. Purchases in the region of R10bn and R20bn would represent “a > reasonable scale of intervention relative to the temporary income support > and health spending needs that the government will have to finance over the > weeks or months” of lockdowns and associated measures, he said. > > The Bank has said it will not announce the amount of bond purchases it > will undertake, nor the time horizon over which it continues with the > operations, saying this would be at its discretion and depend on market > conditions < > https://secure-web.cisco.com/1F3GKtocXx7QugTLEHOJXB3R7jr1DRU7SEvBL1F5tIiWTxrSvXs8zSbIKugudjyH7FnCtAlfx9S6amWShf3OE69mf6pADZSHkZhp1DqzrAwc1hW86fIHz90APs85piBf0McGJ4mb07qG_sVyr1t7a0FPMkcyEjQuchhI7RI7WBOsS9T5PYk6gzWCngOV4_roTKw4kWnUvbfQrt3pSnfhI4dyUtBoc3t3gfHEGqfXTpruZHV38fEu6fx7JIPGNOvKHNHbECXHVpgmasFDxXbN3LFmrlfOf7C6P8-wlUVTI0KsOwCYviy3vTnG290m-G1hbbsH_gKOOA7BGC6ah-QMsGIQcIttBsaF8BDTd0-zzO5HV5lXs8jjYU0uWOExvF5Fc/https%3A%2F%2Fwww.resbank.co.za%2FLists%2FNews%2520and%2520Publications%2FAttachments%2F9810%2FQA%2520on%2520Amendments%2520to%2520Money%2520Market%2520Liquidity%2520Strategy%2520of%2520the%2520SARB.pdf > >. > > > > https://secure-web.cisco.com/19uIzcH7NNzIQDjQ57a81PqcLFS-X49HbEK8RnOnoWSjPpuFGdN40SBlLzH71ZrkbADSKq9KIFAwTbEIJ_9mmPPZFMAnaxE7IfBlaU3f9SaacxIWL_0o9gp-a6YJS4AaO9gQC-feyyS_tHIaEx-yNvXcdzepOVlN46D97hv0_XWWLwEtdnAX0OfMr0szliIL54tbccARtkDRObQGyzUBpOydNkSMBYDHTBYwHgHf7jUtFIHOl32tKM50ofIzaTlR4TW9KXHDbDfFtaAXhvgwz9GO-ujbh5BegH14JRXmM7IDHdSe9oyuhLzMp3brM9seaZk0vcsW1jF36u2w8qPya0b8VQjsJyqtMd_vYbC-cSJvJWcOgZxpdE02gpdKtH5Sz/https%3A%2F%2Fwww.businesslive.co.za%2Fbd%2Feconomy%2F2020-04-20-former-treasury-official-donaldson-says-bank-can-buy-up-to-r20bn-of-bonds-a-week%2F > > > _________________________________________________________ > Full posting guidelines at: > http://secure-web.cisco.com/1e9IYNZnS9DfpZTH49wq7WThCVDAgFyfyZVIHV6oE7qkOLOrhulIGVFNiqbom4m3mBb9ut4TYVjZT7MnpMTtw511MDFOsR5skKfGGLm7B4ZfUxkqAnMvwkuDwPsn0hSxo7TFn16GYGR9-_RJExiUX5nZjfL6phYe49Q1-KOwYMLiupXXbzK3d65qIv4hScmJ6ZSaASrrP2vQ00Dsc_ykGiJhFKOP6U_veHEhnc5VurM3LhrdVX-WzPmJnULVMMiDbJ-wkJ3Ny9Saot7uKFkxthKO775KjcdJMi7eKqPCqCbrn3BiMrFfyyWEBr4pE2WN2v4_IVJyaP5_6FYwXpsH-clJC92n4IQ7mdtQY_u-PZWX62PBNePEA2G4zREb9NZ6B/http%3A%2F%2Fwww.marxmail.org%2Fsub.htm > Set your options at: > https://lists.csbs.utah.edu/options/marxism/johnedmundson4%40gmail.com > -- The law locks up the man or woman Who steals the goose from off the common But leaves the greater villain loose Who steals the common from the goose _________________________________________________________ Full posting guidelines at: http://www.marxmail.org/sub.htm Set your options at: https://lists.csbs.utah.edu/options/marxism/archive%40mail-archive.com
