17 Comments

So, what is your stand on the current inflation rate and when will it go away?

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I'm slightly surprised that you do not address what you consider to be Manchin's motivation for using these excuses to stop the bill. Do you think it is anything other that his greed? His own self interest in dirty energy, and his corruption in satisfying his donor's demands to prevent tax increases on them?

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Whether it is the carrots (money, power, or future “employment” opportunities) and/or the sticks (threats of blackmail or getting primaried) that motivate Joe Manchin, he is just another corporate whore who does things adverse to our rights and our communities’ interests. He is in the Senate to serve oligarchs and no amount of pushback or reasoned logic will change that. Although it would be interesting to understand why Manchin is choosing to undermine BBB, if he were to leave the Senate you can bet he would be replaced by another Manchin-like toady who would work for the same morbidly rich sociopaths because they are empowered to use the same kinds of carrots and sticks that control Manchin. Senator Manchin is just another symptom of a backsliding democracy caused by the powers of corporate personhood. And he’s a real asshole.

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Thanks Stephanie. I do love your sound assessment on JM and hope in 2022. JM’s phony economic fears drive me crazy (of course I blame you for opening my owl eyes) but he always sounds sincere…I wonder if his Maserati goes 185? The Owl Lobotomy of Congress continues to progress too slowly for my taste but my hopes remain as I heard that over a third of Congress now subscribes to MMT! Hope…keep the Faith! Merry Christmas to you and your family.

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Stephanie, When you highlighted "mostly dead," I figured you'd be going for the Billy Crystal shtick in "The Princess Bride."

When are Democrats going to get tough and start threatening blue state secession? If the red states would let us go without another Civil War, we should do it (I'm talking about the Northeast and the West Coast). If they can't afford to let us leave, then they have to bring something to the table. Right now it's just one slap in the face after another. Tax cuts for the rich, voter suppression, packing the Supreme Court and, oh, that little thing we call an insurrection. Does anyone else feel abused and stupid, or am I the only one who feels like a chump?

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The inflation hawks will only be satisfied when the US suffers the fate of Japan. Stuck in a deflationary/stagnent slump for decades.

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So being accountable and living within your means make you a Grinch, interesting analogy!

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You clearly are not an MMT proponent. Have you read any of the other posts in this blog?

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It certainly makes you lazy and a dupe not realising that the point of electing a government is to make it accountable for the well-being of the many not just the few and that has to involve how the country's monetary system best works to accomplish this. Very obviously you have not taken the first step to join up the dots on understanding that system to make the comment you've just made George LaFleur! Here's the explanation how a bunch of economists developed the ideas of Keynes and others to create MMT and the realisation that running an economy is nothing like running a household budget and it's completely amateurish to believe so:-

https://www.levyinstitute.org/publications/seven-replies-to-the-critiques-of-modern-money-theory

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The MMT approach is dependant on the elected being perfect people who make perfect decision on what happens with this newly minted money. They aren't and until they are MMT is a ticket to disastrous out come.

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I could not disagree more, Mr. LaFleur. Our current approach of politicians using the fictitious scarcity of money to allow far too many people to be homeless, far too many children to go to school everyday having eaten no breakfast, and far too many people to live in suffering or even die due to inadequate health care seems disastrous to me.

Allowing the perpetuation of the lie of scarcity gives our imperfect politicians the cover to permit those tragedies to persist.

Knowing how our government really funds its operations, and what is actually possible, is the key to ending these travesties.

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“So tell me Mr Lafleur, what exactly are our means? How do you measure them and know when we are within them? Who exactly are we supposed to be accountable to?

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Stephanie - Taking the time to fully understand MMT has occupied quite a bit of 2021 for me and I am truly blessed with this investment. I am so genuinely curious about why we'd argue so hard against payfors at this point when inflation is the focal point of mmt fiscal philosophy. Is it conviction in inflation forecast returning to normal? (Breakevens give plenty of cover for that). Simply curious at what point you'd hit the pause button with resource utilization so clearly stretched.

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It's sad that America is being held hostage by one man. Maybe America should consider that when the next election comes up.

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This is totally off subject, but Dr. Kelton could you please direct me to resources, or provide your understanding, of how the European Union (Euroland), a non-sovereign entity, increases its money supply. MMT gives me a clear understanding of how a sovereign entity does so, but I'm perplexed how Euroland does so. Thank you very much for your clarity and leadership in MMT.

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Stephanie, In your excellent book, you talked eloquently about inflation being the true signal that new actions are necessary, that deficit spending is inconsequential unless the result is inflation. Okay, we're there. So what policies or actions would you now propose to rein in inflation?

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I heard Summers say at the end of last year he supported BBB and that it was anti inflationary. Late term capitalists need to fill their bellies any which way they can, so Semmers may be correct with his statement. If corporations need huge influxes of money for growth it is much more civil and practical to put the money into the hands of people who need it, who will spend it, and fatten the capitalist that way, than to subject the poor and working class to more deprivation and want. Of course my consistent observation is the best solution to the deprivation and inflation problems and a slew of other social and economic problems is to end "wage slavery" and implement a national "living wage."

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