So, at a time when the world is at war, when major supply chains are disrupted, when US households are being devasted by inflation and when recession is likely the Fed decides it is time to take $95bn a month out of the US economy to support a policy of increasing interest rates that will make life a lot worse for US families already facing financial devastation and which will, because so mich international debt is denominated in dollars, be ruinous for many developing countries. And this will solve literally none of the inflationary pressures that exist, because literally none of them has anything to do with the money supply.
It’s possible to think that St Milt was perhaps overdoing it with his always and everywhere monetary thing but to insist, absolutely, that an $8 trillion increase in the money supply has absolutely nothing at all to do with inflation is a very strong statement indeed.
Spud’s real problem here is that he’s been claiming for a decade that QE will never, ever be unwound so it’s not real debt. So, now it is being unwound he’s got to deep six that and start to shout that it should not be unwound. Which is a very different argument, no?
Completely OT, but from Lord Frost via the DT
“ The economist Tim Worstall noted this week that “the EU had 1973 to 2020 to show that UK membership was a good idea. 47 years. Let’s measure Brexit by that same standard.” I agree.”
Yes, all nicely circular. Frost was getting aggro on Twitter so I made that suggestion on the thread. Which is then quoted back in the newspaper – circularity or what?
Madsen did at one point suggest I should go to work for Frost. Would have been fun, funnish, but never did apply. A pay cut to work in the civil service in London didn’t greatly appeal to be honest.
From what I can discern seems to be that because the increase in money supply in 2008 didn’t immediately (or indeed for a long time) result in headline increases in the official inflation rate, the likes of Murphy and other MMT advocates presumed you could simply magic money up with the strokes of a key. It’s important to remember that these people have zero understanding of Finance or economics. If Murphy did work for one of the big Audit firms back in the day, I’m not sure based on his obvious ignorance of accounting how he managed to get through the interview process.
Insiders tell me that work in the Civil Service is only part time these days, the rest of the time is spent on training about the latest directives on inclusivity, diversity and the correct ways to refer to your colleagues.
“So, at a time when the world is at war, “
The world isn’t at war.
There’s a nasty war going on in one small bit of it, but when hasn’t there been?
Have everyone already forgotten the Forever wars in Iraq, Syria, Libya and Afghanistan?
Georgia, Azerbjan/Nagorny-Karabash, Chechnia, Nicaragua, Columbia, Sudan, Angola, Nigeria, Mali, Vietnam, Korea, and so on, ad nauseum.
Typical media-provoked hysteria in an effort to bolster a ridiculous piece of economic balderdash.
Yawn.
Re: Frosty the Leaveman, who I wish was our Prime Minister (inshallah).
It’s a neat rhetorical response, but I’d say Brexit has already been an amazing success. It has achieved several important goals, in no particular order:
* Every single one of the expert class’ predictions have turned out to be bollocks, dipped in shit, and they’re still crying about it
* We’ve repatriated nominal democratic control over how we’re governed (still lots to do to get some level of actual democracy)
* That posh windmill lawyer is so upset he’s taken to crossdressing and abusing animals
* The EU, which is a monstrous apparatus of authoritarian control (Dan Hannan references That Hideous Strength by famous Irish God-talker CS Lewis, but I’m not sure if he actually *believes* it – I do, and unironically) will never financially or politically recover from losing Provincia Britannia
* That evil midget cuckold still isn’t a peer
Have everyone already forgotten the Forever wars in Iraq, Syria, Libya and Afghanistan?
Obviously yes.
Russia Russia Russia Russia Russia
Russia Russia Russia Russia Russia
Russia Russia
Mushroom! Mushroom!