The only solution to a monetary and financial paradigm of Debt Only is Monetary Gifting. Fiscal deficits are monetary gifts to government contractors, UBI is a direct gift to everyone and a 50% Discount/Rebate policy at retail sale benefits every economic agent individual and commercial. We better hope the Chinese don't wake up to the new monetary and financial paradigm before we do.
No, it is not. Have you seen the large deficit in Japan since like 30 years or so? Still economic stagnation. Similarly a UBI would not be sufficient because it can’t be high enough to have an impact without causing inflationary pressures.
The best way to fight these problems is to make a policy for a permanent strengthening of demand (which a UBI certainly would do, but without strengthening productivity as well, which would put said inflationary pressures in place) through wage growth and a maybe a Job Guarantee Program.
This would make for a better distribution of wealth and thereby solve the problem of lacking demand, which is, as brilliantly shown by Adam Tooze on his Substack mini series on China (especially in the second series-entry), the main cause of China’s problems and not our monetary system.
Ivan, If you can buy $100 worth of groceries for $50, $30k for a $60k Tesla, $200k for a $400k house and 50% off every other product or service...how in the hell are you going have inflation??? 50% Discount/Rebate policy at retail sale forever ends the supposed orthodoxy that increasing the money supply leads to inflation.
Its not what you want. And this has been an issue for quite some time now. Not to mention its economy struggling too, especially with youth unemployment. Just a bad combination for the world's 2nd largest economy.
As Prof Mike Hudson is fond of saying , “debts that can’t be repaid, won’t be repaid”. Can PBOC keystroke enough yuan into existence a la GWB/ Obama to keep the dragons at bay? Seems like PRC is more sovereign than we are these days....
Yikes. Good to know.
The only solution to a monetary and financial paradigm of Debt Only is Monetary Gifting. Fiscal deficits are monetary gifts to government contractors, UBI is a direct gift to everyone and a 50% Discount/Rebate policy at retail sale benefits every economic agent individual and commercial. We better hope the Chinese don't wake up to the new monetary and financial paradigm before we do.
No, it is not. Have you seen the large deficit in Japan since like 30 years or so? Still economic stagnation. Similarly a UBI would not be sufficient because it can’t be high enough to have an impact without causing inflationary pressures.
The best way to fight these problems is to make a policy for a permanent strengthening of demand (which a UBI certainly would do, but without strengthening productivity as well, which would put said inflationary pressures in place) through wage growth and a maybe a Job Guarantee Program.
This would make for a better distribution of wealth and thereby solve the problem of lacking demand, which is, as brilliantly shown by Adam Tooze on his Substack mini series on China (especially in the second series-entry), the main cause of China’s problems and not our monetary system.
Ivan, If you can buy $100 worth of groceries for $50, $30k for a $60k Tesla, $200k for a $400k house and 50% off every other product or service...how in the hell are you going have inflation??? 50% Discount/Rebate policy at retail sale forever ends the supposed orthodoxy that increasing the money supply leads to inflation.
Its not what you want. And this has been an issue for quite some time now. Not to mention its economy struggling too, especially with youth unemployment. Just a bad combination for the world's 2nd largest economy.
A nice concise economic explanation of China’s possible financial problems. Well stated.
Geoff Davies
As Prof Mike Hudson is fond of saying , “debts that can’t be repaid, won’t be repaid”. Can PBOC keystroke enough yuan into existence a la GWB/ Obama to keep the dragons at bay? Seems like PRC is more sovereign than we are these days....