Jim’s Mailbox

Posted at 11:07 AM (CST) by & filed under Jim's Mailbox.

Jim,

Divide and conquer works ever time throughout history.

Dave

Disunited America
February 16, 2019

Disunited America

Paul Craig Roberts

Prior to the Democrats becoming the anti-American political party of Identity Politics, whites, blacks, and Puerto Ricans could laugh at themselves and at one another. Dean Martin turned a roast, in which good humored fun is poked at a prominent person, into mass entertainment. That blacks were equal opportunity targets was testimony to the success of black entertainers and athletes. In the humorless world of today, these roasts would be considered “hurtful,” “offensive,” and “hate crimes.”

Americans had to be trained to this new mentality. It was done in order to break us apart as a people, and it has succeeded. Recently, in response to overwrought reactions to youthful blackface experiences of current Virginia Democratic politicians, I posted a Dean Martin roast of Sammy Davis Jr. and asked if Davis was a self-hating black for permitting himself to be ridiculed on stage before a large audience. https://www.paulcraigroberts.org/2019/02/07/was-sammy-davis-jr-a-self-hating-black/

The younger generation has been programmed to see Sammy Davis’ roast as a ‘step-and-fetch-it” black being ridiculed for white entertainment. That many of those roasting Sammy Davis were themselves black and Sammy Davis was a very successful multi-millionaire entertainer does not affect the modern perception of the event. I wonder if they see Ronald Reagan as a self-hating white: https://www.youtube.com/watch?v=ve1z48hljYY

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Wolfgang,

Just like bankruptcy, “sanity” will return slowly…then all of a sudden!

Best,

Bill

Jim/Bill,

Modern Monetary Theory (or as it should be known, Magic Money Tree).

“There is just one problem with this “theory”:

Alas, there is no free lunch. For one, the economy might not have enough resources — in the form of workers and industrial capacity — to meet the combined demand from the government and the private sector. The result would be inflation, as too much money chased too few goods and services.”

First Bill Gates saw the light:

‘… the establishment is starting to get worried. To wit, last week it was one of the world’s richest men, Bill Gates, who slammed MMT as “Crazy talk” saying that the theory’s core principle of “not worrying about the deficit” and that “we’ll just print the money and do it” is “Well crazy.

Now Dudley sees the light.

‘And not just inflation, but hyperinflation. However, to the socialists who pitch MMT, the fact that inflation hasn’t broken out yet – largely due to the relentless monetization of debt by central banks which has kept inflation in check so far, taking the experiment to its surreal extreme should not result in any dire outcome. And yet, that’s nothing but lunacy for two reasons. First, assume the current model remains in place indefinitely – the outcome would be as follows:

America as a whole consumes considerably more than it produces — and depends heavily on foreign investors to lend it the money needed to keep doing so. But they don’t have to make dollar-denominated loans or buy U.S. Treasury securities. If U.S. debts were to keep growing, at some point the Fed would face a dilemma. It could increase interest rates to maintain foreign (and domestic) demand for dollar assets, at the cost of damping U.S. economic growth. Or it could keep interest rates low and allow the dollar to weaken, which would push up inflation as imported goods and services became more expensive. Neither outcome would be pleasant.”

Lord help us all,

CIGA Wolfgang Rech

Bill Dudley Slams MMT: “It Failed In Germany, Venezuela And Zimbabwe”
February 19, 2019

While there has been much disagreement among the financial elite about the ultimate consequences of central bank activism and market manipulation, with some – usually those who do not manage money for a living and are not paid by investors – predicting fire and brimstone, while a separate, far more optimistic group expects the world’s greatest experiment in monetary policy to somehow have a happy ending, when it comes to socialism disguised as monetary policy, besides a certain, politically-influenced fringe, the condemnation against “helicopter money” wrapped in a convenient political wrapper has mostly been uniform.

We are talking, of course, about MMT, which stands for Modern Money Theory, but would make far more sense if it stood stand for Magic Money Tree, as the theory effectively espouses unlimited money printing and skipping central banks as intermediaries in money creation which, however, the theory claims does not result in hyperinflation because, somehow, taxation manages to limit the amount of money in circulation and the result is monetary utopia.

It is therefore hardly a surprise that MMT has emerged as the pet financial theory for such socialist politicians as Bernie Sanders and Alexandra Ocasio-Jones (the biggest proponent of MMT is finance professor Stephanie Kelton who previously worked on Sanders’ presidential campaign and was a “chief economist for the Dems on the Senate Budget Committee”), who get to promise their potential voters pretty much everything while also vowing not to worry about the insane costs that delivering “everything” would entail (AOC’s Green New Deal is said to cost over $6 trillion and according to some, the bill would be north of $20 trillion).

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