Burn Before Reading

@sweatystartup This guy is a B minus level troller. Spittin shit in On Clouds and casual tech-stretch khakis, baby.

I intentionally keep my personal burn rate much lower than it could be. Here’s why:

@HormuzLetter This is goading on the part of the U.S. to justify the “deterioration” of the “deal” to justify escalation.

BREAKING: US forces struck two IRGC boats laying mines in the Strait of Hormuz and missile sites in Bandar Abbas, per CENTCOM spokesperson. A source close to Iran's Ghalibaf says Iran's "decisive response" is now underway. The deal is off.

@ProfHall1955 @Aaron_Good_ @ProfSteveKeen @michaelxpettis @PatriciaNPino @petrock @AusMMT @baylissbaghdad @wbmosler My God. You sound like a feckless Democrat. We just need to change our messaging and show decorum and that will solve our problems. You are also the type that would tell Newton gravity doesn’t exist because something something my orthodoxy. It’s wild.

@Burnbefreading @Aaron_Good_ @ProfSteveKeen @michaelxpettis @PatriciaNPino @petrock @AusMMT @baylissbaghdad @wbmosler Discussed periodically in a civilised manner on my timeline. Your attitude simply reinforces the 'cult' label. You're inflicting damage on your own movement but you can't understand why.

I cannot imagine a better possible endorsement of this piece of work - which they clearly haven't read anyway.

@J_MoAGoGo This is a senseless debate. You just don’t want admit you are wrong. I can’t really do much with that.

@Burnbefreading The system corrects at the cost of growth and unemployment. The depreciation reduces the real incomes of the domestic sector.

In the words of Hyman Minsky “anyone can create money, the problem is getting it accepted”. Today’s MMTers need to read more widely about finance, I think.

@J_MoAGoGo Just stop and no. inthesetimes.com/article/united…

@Burnbefreading No it doesn’t. Zimbabwe’s currency didn’t have a lower limit on its value.

@J_MoAGoGo corrects long before a currency's value hits zero.

@Burnbefreading Foreign Investors, seeing that the CAD will continually grow, will see that the relative scarcity and hence relative value of domestic currency will tend to zero (ie continually decline) as long as income growth is this high. The will therefore enforce depreciation

@J_MoAGoGo From a real-resource perspective, imports are a net benefit, and exports are a cost. When a nation runs a CAD, it means foreign countries are giving up their real goods and labor in exchange for pieces of paper (or digital bank entries) issued by the domestic government. If forgn

@J_MoAGoGo for that currency. Foreign investors cannot simply ignore a currency that commands the economic output of an entire nation's tax base.

@J_MoAGoGo No. It’s a resource constraint, not a financial or balance-of-payments funding crisis. For a structurally self-sufficient nation, nominal currency fluctuations do not diminish the state's capacity to employ its own people or utilize its own domestic resources.

@Burnbefreading That is the cost of financing. Investors and dealers accept a countries liabilities only at lower prices if it is growing beyond the BOP constrained rate. This happens until growth and employment are reduced in line with BOP sustainability.

@J_MoAGoGo domestic assets or holding the currency). The capital inflow is a mechanical consequence of the CAD, not a prerequisite for the government to be able to run it.

@Burnbefreading You need to broaden your scope to open economy macro though. Foreign agents don’t need to obtain the domestic currency to pay taxes. Yet the domestic government is reliant on capital inflows to run a CAD.

@J_MoAGoGo A Current Account Deficit (CAD) means that the domestic sector is sending its currency to the rest of the world to buy more goods than it sells. In pure accounting terms, this excess domestic currency held abroad automatically shows up as a capital inflow (e.g., foreigners buying

@J_MoAGoGo A government that issues its own currency never needs to "finance" its imports or run a capital account, because it does not need to secure foreign currency in order to spend its own.

@J_MoAGoGo I’m losing my temper and you’ve lost the argument, I’m fine with that.

@Burnbefreading I mean I’m clearly not the one losing my temper…

This is how conversations with MMTers go: “I disagree with x” “but MMT doesn’t say x”. “Here’s Bill Mitchell and Warren Mosler saying x is literally always true” “Only in your definition of always” I see now it’s fruitless engaging with these cranks. It’s beneath me, frankly.

@J_MoAGoGo Also, don’t in one breath state those correctly challenging you are beneath you and then become a little bitch when they call you out.

@Burnbefreading The fact you get so angry is what stops you learning anything. You’re not open to other viewpoints.

@J_MoAGoGo Don’t conflate double entry accounting with the role of taxes. Taxes drive the need for the currency, period. Taxes also create unemployment, period.

@Burnbefreading The person accepting the IOU (govt money in this case) is financing the issuer. Currency is the debt of government just like a bond is or a bank deposit is. Just ask Randall Wray

@J_MoAGoGo No more patience for dipshits, especially those who lack self-awareness.

@Burnbefreading Yeah, this is how you come across as someone in command of the subject…