gfc & mmt daily

16 Responses

  1. Warren, on the topic of the usa going the same way as japan…does japan have a similiar constraint as the usa in that the treasury can’t run a deficit with the central bank? In other words could they stimulate the economy through gov’t spending without having to issue bonds?

  2. it is not really in Lithuania. The publisher of that page is Lithuanian. The web site is not. It has Lichtenstein domain extension.
    MMT is pretty much unknown in Lithuania.

    1. @Gary,

      “The newspaper” is just my personal automatic morning news filter. And yes, I’m Lithuanian, and MMT isn’t well known here. It takes time. I think for now my blogroll may be is the best, if not single MMT/PK links collection @ LT

      We have convertable currency, plans for joining €, parlamentary elections in a five months, and no single political party declaring monetary sovereignty, not even socialdemocrats or nationalists.

      It would be interesting to find more MMT people on G+. Are there any users?

      1. @Vytautas Vakrina,

        the news filter is quite good, I think.
        The blog is interesting as well, but has not been updated for a while.
        I am Lithuanian as well.

        Lithuanian currency is not freely convertible. It is tied to Euro. So basically Lithuania cannot spend as needed, while it also has no hope for bailouts from ECB.
        Also, 70% (maybe more?) of loans in Lithuania have been issued in foreign currency, so untying themselves from the euro would require some serious political courage – which none of politicians in Lithuania have.

      2. @Vytautas Vakrina,

        The closest you get to MMT in Central Europe is Kazimierz Laski and his school in Vienna which is basically the continuation of the work started by Michal Kalecki. Obviously he is not Lithuanian, these people were socialists / reformist communists persecuted in Poland in 1968 for being “Zionists” (you know what it meant…).

        “MMT” since 1955…

        Nobody, I will repeat, nobody among my old colleagues from Poland would ever embrace Chartalism because we were so thoroughly brainwashed on our way out of communism and we lived through a brief period of hyperinflation. So everyone “knows” what “printing money” leads to …

        I need to add that nationalism bordering fascism is raising its ugly head in Central Europe again – not only in Poland. That’s why I am pessimistic to some extent about the future of the region. I am happy not to live in Europe any more.

      3. @Adam (ak), Fascism arises when people get pissed off because their standard of declining in falling, and then begin to look around for people to blame. Since they have no power against the people who are most directly screwing them, they take it out easier targets.

        Europeans could get put back in its bottles if the people with all the money and power would stop being greedy pigs and get their economy’s moving again. But if they don’t, and are content to let everyone beneath them start slaughtering each other again so they can profit on even the carnage, then things will keep getting worse.

      4. @Adam (ak),

        there are a few “heterodox” economists in Lithuania (Povilas Gylys is probably most influential) – but they are written of as old-communists. The dominating public opinion is very gold-bug like and pro-german. Railing against “money printing” and “living beyond means”.

        Nevertheless, I have been posting almost daily in the comments of some online news sites, and might be wearing them down 😉 (at least a few that feel provoked enough to argue :))

        Regarding nationalism – yes there is some of that, but not more than in the West. The problem in the Eastern Europe is the scar of Soviet domination, which makes people very suspicious of any ideas that critique the “free market”. So – although people are tired and desperate form neo-liberal policies, they think the problem is that there were not enough of those applied.

      5. Gary,

        What’s going on in Central Europe is not benign. The anti-Russian hysteria spouted by PiS (Jaroslaw Kaczynski) after the death of his brother is a form of ugly nationalism.

        Please look at these guys (you won’t need any translation) – they are often “hired” by the mainstream Catholic integrists (Radio Maryja supporters) to do odd and dirty jobs:

        I haven’t been to Poland for the last 4 years but I have close family members living there. As long as the economic situation is stable and unemployment is about 10-15%, there is no practical risk of anything like fascism. However if there is an economic collapse (what may happen if there is a breakup of the Eurozone), a different logic may apply.

        I totally agree with the view that the neoliberal economic paradigm is one of the root causes of the current social issues.

      6. @Adam (ak),

        > “living beyond means” ?

        Good lord! We’re all living far below our potential means, and from the news reports, Lithuania is forgoing more potential output than most.

      7. @Vytautas Vakrina,
        Greetings from Estonia. Nice to hear that Lithuanians with six toes(Latvians have seven)have heard about MMT. I am fighting against deficit terrorists in Estonia.

  3. Don’t cry Wulff, Anne…

    We’re all “far-right” or “far-left” extremists according to Anne Applebaum the wife of Polish Foreign Affairs Minister who also moonlights as a senior writer for The Washington Post.

    Austerity is a part of the current dominant ideology of power “T.I.N.A.” just as collectivisation of farms was a part of the previous failed experiment I had a great privilege to witness. “Whoever raises hands against the People’s power, that hand will be chopped off” (W. Cyrankiewicz, Polish PM in 1956). Will Anne’s husband chop off my hand? I’m lucky I live quite far away…

    “I once promised never to use the term “far right” to describe any European political party because these parties differ so much, from country to country, and because they often want such different things. “Far left” is usually a more useful term, since far-left parties are usually Marxist or Maoist, so they actually share some political views. But as I look across Europe, I don’t know what to call the wave of discontent, as most of the parties on the outlying right or left now have more in common with one another than they do with anyone in the center. Generally speaking, they are anti-European, anti-globalization and anti-immigration. Their leaders, in the words of a French friend, want to “withdraw from the world.” They don’t like their multiethnic capital cities or their open borders, and they don’t care for multinational companies or multilateral institutions.

    Above all, they are anti-austerity: They hate the budget cuts that they believe were imposed on their national governments by outsiders in the international bond market and by their own membership in the euro zone. Never mind that those same national governments had created the need for austerity by overspending and overborrowing, or in some cases — most notably Greece — by funding vast, unaffordable and corrupt state bureaucracies over many decades. And never mind that many of them had begged to be part of the euro zone — nobody was forced to join — or that they benefited for many years from being members.

    Often, they are also anti-American, or at least anti-Western-alliance. Melenchon wants France to leave NATO and cozy up to the Chinese Communist Party instead. Syriza wants Greece to move closer to Russia. And, yes, they share their dislike of liberal democracy and liberal capitalism with an earlier generation of Europeans. The far left and far right of the 1930s also dreamed of alternatives to the bland and bankrupt political center and, in some cases, tried to implement them.”

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