If MMT Is The Answer, What's The Question?

We discuss a recent article on MMT.

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[mmtprojectinunderaminute]

Good to see you furthering your understanding of MMT Martin. In this regard, MMT is not about whether it “works” or not. MMT is a lens, a description, an analytical framework that sees and describes the economic activity and the likely outcome. You could invite Prof Bill Mitchell onto your show to answer your questions. Politicians are voted in by Citizens and they are accountable to the electorate. Politicians are all we have. The so called independence of a central bank remains accountable to government. The question you wanted answered is How do you introduce economic stability into a market system that thrives on boom and bust cycles? The answer is through a stability framework known as a job guarantee which is a core component of MMT. It’s so much more than just a true full employment program.

[johndouglass]

Excellent big picture economic comment. Thank you Martin.

[thehrk]

I would encourage everyone to do their own research on MMT rather than dismissing it without going to the effort of properly understanding what it is, as most in the media do.
MMT is simply a practical and scientific approach to understanding government finance in today's world. It is rather uncontroversial from a scientific perspective IMO, however it's implications are controversial from a political/ideological view which is what russtles feathers

[benderrodriquez]

The question is "would you like it with or without lubrication".

[davidlazarus]

It was interesting that the article mentions capital controls. That is the biggest fear of the accountancy firms and banks. Capital controls would eliminate the massive scope for tax evasion and avoidance that generates such a huge share of their profits.

[plucky]

Super, its not your money, not now, not ever!

THE QUESTION IS**WHY HAS AUSTRALIA ELECTED AN AMERICAN CORPORATION TO DICTATE TO YOU**
WHY..HAS AUSTRALIA ALLOWED THIS CORPORATION THAT MASQUERADES AS THE AUSTRALIAN GOVERNMENT TO EXIST AND SELL OUT THE ENTIRE COUNTRY
WHY ..HAS AUSTRALIA ALLOWED THIS CORPORATION TO SELL OUR GAS..OUR..ELECTRICITY..OUR WATER..OR PORTS ...OUR SOVEREIGN LAND ..{35% TO CHINA }..TO THEIR MULTINATIONAL ASSOCIATES IN COMPLETE CONTEMPT OF OUR CONSTITUTION
WHY..HAS AUSTRALIA TOLERATED THE FINANCIAL RAPE OF EVERY ONE ..
WHY, ,HAS AUSTRALIA STOOD BACK AND WATCH OUR MANUFACTURING INDUSTRIES DESTROYED..
WHY..HAS AUSTRALIA WATCHED OUR FARMERS DEVASTATED BY THE TOTALITARIANISM AND GREED FAKE GOVERNMENT POLICIES POLICIES
WHY IS AUSTRALIA SO STUPID AS NOT TO JAIL THESE IMPOSTER POLITICIANS AND REMOVE THEM FROM OUR PARLIAMENT ..

[whoguy]

I'm waiting for my helicopter money!!! Get paid for being a consumer.... I like it!

[jamesbaker]

The question is: Will they crash the stockmarket and bring the economy into a recession causing a"big depression sometime 2019-2020. i think the answer is in the affirmative but only after seeking another bailout and being refused. Alternatively they won't do anything and thus causing the economy to slide under its own insecurity.

[chisel]

The question is "what is the next unnatural act?"

[damianbowyer]

Terrific Stuff Martin, but The End Game is the Question.

[vickidianacoghlan]

Merry Christmas DFA!!!
All I want for Christmas is a STRONG economy!!!

[Rob-fxdw]

Martin is right that politics is ruling the roost and that is a big problem. MMT is opening the door to a higher less accountable level of politics .

[wingkeechan]

The question is "When is debt too high?". And the answer is "Hope"! That was the answer given to mankind when the Pandora Box was opened.

[i.pfreely]

The answer you seek Martin is to follow the course Iceland took in 2007-08. Do not fight the forces of finance and economics. Let the recession (well over due) proceed, Jail the corrupt banksters, auditors, governors (past and present) and pollies, and make foreign investors take a hair-cut.Protect the financial interest of Australian's first (secure all bank deposits, savings and superannuation funds held by the banks), then let the insolvent banks roll over and die. Flush out all the bad debt (mal-investments) so new economic  growth can proceed.QE and MMT is sheer financial madness and will destroy Australia. Abolish the corrupt RBA and its lieutenants.

[TheSnowLeopard]

MMT might have been a good idea 11 years ago before households got slugged with all this extra debt... The solution to too much debt isn't even more debt. We need to learn the lessons of Argentina.

[snowyskylar]

Gold and silver for wealth preservation? And how much will gold rise too in your opinion?

[ozychk]

MMT is the way the system works, it’s not a theory as such, the nuance differences are the way the money is spent into the economy, either to build productive capacity where resource scarcity can cause real inflation not necessarily more money in the system. The way I understand it is that Bill is more concerned about building genuine nation building productive capacity either by the private sector OR by the government as and when necessary. If people that vote understand that the government has that power, then we can hold them to account about the way they spend into the economy. So that’s a difference conversation to getting a budget surplus, which is a false narrative and holding us back, especially now;) Bill also advocates for a Job Guarantee rather than a UBI, now that’s another discussion we need to have but it’s a discussion within the right mindset

[joshmarks]

Thanks Martin. Would be awesome to get Bill Mitchel on for a chat.

[philipjames]

What makes Bill Mitchell think that Australia, which has a minor world currency, can radically expand its money supply. The US may flirt with the MMT notion because it possesses the world reserve currency and it can export half of those inflated new dollars to other countries, as it has been doing in ever increasing quantities since 1944.
Mitchell is dreaming. Our dollar would be toast in short order.
Aussies took Morrison’s money and did the correct thing with it- paid down problem debt. There’s a lot more debt to get rid of before people can feel a little safer, so the economy will wind down for quite a long time yet.