MMT: overcoming the political divide.

China's debt is astronomical, on top of this the Chinese is trying to get into Vietnam due to food shortages...please go ahead put your money where your mouth is... invest in the Yuan

 

Chinese debt is irrelevent. Chinese productivity is important.

Food shortages in China? Link please?

Investment in ANY currency - or gold - is a fool's game, for those who don't want to work for a living.

 

China's Yuan is far more worthless as a currency (never mind reserve currency) than the US$

Every time a loan is created, they create money, it is the same as printing money. The Chinese have created more than 60% of the worlds fiat currency for years. This is why debt IS RELEVANT.

The only money worth anything today is gold, silver, bitcoin, everything else is fiat currency. Older people are buying gold and silver, younger people are buying bitcoin. What does that tell you about the future of Bitcoin as a money? It doesn't matter if they ban it till they are blue in the face, banks & financial institutions worldwide have lost the trust of the younger & older generation. The adaption to Bitcoin have already begun.

As for the Food shortages

 

That depends on which economy is producing the most goods and services.

This is an MMT thread; government debt is irrelevant, the constraint is inflation which simply requires that demand (private + public) does not exceed available resources and productive capacity of the nation.

The difference is the Chinese government has ultimate control over the created money, and can write debt off as it sees fit, at no cost to Chinese citizens. (This is what the US and Australia, etc, should have done in this pandemic, rather than borrowing the money from private banksters/financiers).

Indeed China has lifted more people out of poverty in 3 decades than in all of history, while building more new cities and infrastructure, including the world's largest high-speed rail network.

Like I said, this is an MMT thread. You can learn something, or stick with your obsolete, evil. neoliberal monetarism that denies a role for money creation in the public sector, this latter which is required to facilitate prosperity for all workers because invisible hand private sector markets don't succeed in this regrd - they only channel resources to the top.

Hence the permanent un/underemployment rates associated with neoliberal economies.

And all of them are deceived by self-interested central bankers who ensure the world's resources are channelled to the top.

[QUOTE}What does that tell you about the future of Bitcoin as a money? It doesn't matter if they ban it till they are blue in the face, banks & financial institutions worldwide have lost the trust of the younger & older generation. The adaption to Bitcoin have already begun.[/QUOTE]

Try paying your fees, rates and other government charges with Bitcoin...

And as for food shortages in China; yes it does seem Trump has caused some damage, with some laid off workers emigrating to Vietnam; but in the meantime one sees US cities burning in BLM protests.....karma, perhaps.

Note: MMT shows China doesn't need to worry about the US, it has access to all the resources it needs, and can employ everyone via a Job Guarantee. I hope they wake up to that fact before they suffer the fate of the USSR.

 

More to the point, I hope the Chinese take @a better world 's advice and issue "currency debt-free." It's one of the few things I can think of that might slow the Chinese long march towards number one.

 

China is nowhere near number one, it is all hype & lies. Their science is hype & lies, their so called world leading number of patents hype & lies, even their productivity... especially now with so many companies moving manufacturing elsewhere. The chance for China to have ever been number one rode off into the sunset after the GFC in 2008.

 

If you did watch the Vietnam video you would know manufacturing is leaving China in droves... means your MMT productivity is non existent. Without productivity your money printing have nowhere to go but hyper-inflation. Look, everyone is doing it tough, I take no delight in people not having food and believe me there are many places around the globe where life is downright miserable right now. But please don't try to sell me the Yuan based on MMT, it's a pipe dream... more hype and lies.

Paying utilities with bitcoin is exponentially easier than paying with gold or silver. Besides Paypal is working on a crypto platform...it's just a matter of time
https://sg.news.yahoo.com/paypal-picks-paxos-supply-crypto-035251736.html

As for the Central banking system, just because I don't like the Yuan doesn't mean I embrace the federal reserve. I am for the free market, this is why I like bitcoin.

 

No, it means MMT is not being practised in China.

Any nation that practices MMT can guarantee above poverty employment

That sentence only proves you apparently have limited comprehension skills, because I have never said differently. Indeed it's a central tenet of MMT

Speaking of "doing it tough", the US congress can't even agree how to support millions of unemployed workers, because politicians have been indoctrinated by evil, orthodox neoliberal economists who claim any money support has to be borrowed at a cost to the taxpayer. All lies.

Government is activated in part by currency issuance (MMT would have currency partly issued in the public sector, as well as in the private sector as at present, while observing the resource and productive capacity constraint).

You are actually endorsing Anarchism.

Like I said: Anarchism, with no government prescribed fees and charges.

Won't work, at least until we eradicate poverty, and war; and we have reached agreement on the nature/being of God.

MMT will help get us there.

 

IMO that is a crucial flaw in MMT: it does not recognize that private sector money issuance represents an unrequited transfer of purchasing power to -- i.e., stealing by -- private banks, in the form of interest charged on debt money they issue de novo.

 

I suppose a balance between public and private resource allocation is required, since competitive self-interest is a driver of innovation.

MMT sees that choice being determined by the electorate.

So provided the government can always act as employer of last resort, to guarantee above poverty participation for all (at a minimum) - as stated by MMT - then the share of that resource allocation (via "purchasing power") is not solely dependent on the tender mercies of private banksters.

 

Rent seeking is also driven by competitive self-interest. The best "balance" is 0% rent seeking.

That is cynical agnosticism on the part of MMT economists. Of course it is up to the electorate. All sorts of economic mayhem have been committed with at least the acquiescence of the electorate. But the banks have gone to a lot of trouble to keep the electorate ignorant of their choices, and it is up to economists to inform their discretion. To pretend that fractional reserve banking is anything but economically destructive thievery is economic malpractice.

History demonstrates with 100% consistency that as long as private banks are privileged to create additional debt money in order to obtain interest income on it, they will abuse that privilege by issuing too much, creating the boom-bust cycle.

 

MMT economists agree; but not ALL competitive self-interest is rent seeking.

Certainly the electorate has no real choice in the present neoliberal orthodoxy with its much vaunted independence of central bank. MMT economists agree with everything else you said in that paragraph,.

But the total amount of activity - public and private - based on creation of interest bearing debt money alone (in private banks) will be markedly reduced in MMT as non-debt public money creation becomes an important contributor to economic development ; and private abuses will be dealt with. Not to mention the 90% of useless (for the real economy) financial industry activity that will be abolished in MMT.

 

How will private banks be stopped from issuing excess debt money?

How will it be abolished if private banks are still privileged to create debt money in order to charge interest on it?

 

I have seen that question discussed on Bill Mitchell's blog; IIRC the answer is by government regulation of bank lending, consistent with desired public policy outcomes.

That is also debated in the MMT community; I would prefer to nationalize the banking system entirely, with bank managers employed to ensure people who take out non-interest bearing loans are capable of repaying the loans.

 

Their Debt is nothing even close to ours... of course our Media, both sides pretend it is.... It is based in Yuan 7-1...
They are going to blow this country away financially over the next 50 years, then take it if they so feel...
We will be trying to figure out how to repair 1980 Submarines while they are building 10 a year. You can thank the Globalist Cabal for this, the greed, the supply side economics Art Laffer was so proud of setting up in the 1980s and what Trump just gave him a medal of Freedom for doing. It is a laughing joke at the elite parties around the world. "The SUCKER AMERICANS" with their once mighty economy being pilfered by the Central banks, Israel, family and friends.
All while Americans debate Pence's Christianity and now if Kamala is American. Damn Fools.... most everyone in this country.

I am Proud to have educated enough to foresee this BS and prepared accordingly. Same time I am amazed that so many people can be so memorized by a shyster or fall for the Nancy Pelosi Chuck shu... garbage of income for all. Both ways will destroy the dollar and the country goes with the money. Let's hope that the 800T of Gold is actually at fort Knox, it is the only partial savings for this mess.

 

While alt-currency is going to become increasingly important, I wouldn't bet the farm on it being bitcoin. Eventually someone with more credibility, clout, stability, and transparency will come along and become the gold standard. I've been expecting Musk to do it, but he apparently has settled down for life in terms of actually working and thinking. Maybe someone like google (*puke*) or GE, or some one-off the financial sector company like that.

 

I disagree, I believe Bitcoin is the gold standard for crypto... per the reasons discussed in the vid below

 

No... no they are not, sadly China is very good at hiding what is really going on, to the detriment of its people.

 

Gold was the gold standard then came the dollar. Commerce is never going to hinge on an unaccountable system in which people can steal all your money.

 

Bitcoin will never be money -- i.e., generally accepted in trade -- for one simple reason: the fixed supply means that if it ever becomes useful, deflation will set in, making it a speculative asset people want to hold rather than money people want to spend. We see it already.

 

The deflationary value of Bitcoin means it will only become more valuable. Just as the inflationary value of fiat currency causes it to loose value. ie. you pay $2 for a bread today, next year it's $2.20, bitcoin it the opposite... all the more reason to own it, as for speculation there are many ways to hedge... diversify, stop loss and firm exit strategies before you enter a trade.

 

as opposed to fiat currency where people can't steal your currency...

 

Right, there is a reason to own it rather than spend it. So it will never be money.

 

Never say never, many websites accept cryptocurrency as payment and Paypal recently announced they are entering the space.

Seismic Shifts In The Cryptocurrency Market May Be Ahead, With Stablecoins Soaring

https://www.investing.com/news/cryptocurrency-news/paypal-to-reportedly-offer-crypto-trading-through-paxos-partnership-2235147

 

Money is what is generally accepted in trade. As deflation makes bitcoin more profitable to hold than to trade, people won't spend it, and it will not be generally accepted. Not to say that some other crypto scheme might not be better, but there will probably have to be a government policy that it must be accepted in legal settlement of debts, especially tax liabilities.