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MMT controls the liberal economic blogosphere

August 5, 2011

First, the commenters beowulf and letsgetitdone created the Trillion Dollar coin.

Then people started realizing we could and should use the Trillion Dollar Coin anyway after we suggested it.

Now people are realizing that the Debt deal wont make it through the 2012 elections after we noted it probably wouldn’t if we go into a recession.

Note the classy Pragmatic Capitalist did link to the source for the video – the Pragmatic Capitalist rules.

Next, I hope people start talking about how monetary policy sucks because it uses real estate and causes debt slavery and so we should use fiscal policy instead.

Roger Mitchell is worried about MMT not making a difference.  Cheer up Roger!  We appreciate the work and there are more people to help out now.  Talking works.

Many thanks to the comment section here (and those emails) for keeping the ideas flowing!  I owe Peter D at least 2 posts, wh10 at least one post, and Clonal Antibody a series of posts…and of course the MMT crew for  loads of incredible ideas.

Categories: Main
  1. wh10
    August 5, 2011 at 3:52 pm

    And now Krugman is engaging in direct discourse with Cullen Roche and the payroll tax cut idea!

    These are exciting days in MMT world!

    • beowulf
      August 5, 2011 at 5:08 pm

      Is there anyone who’s against the payroll tax cut? Certainly Art Laffer, Greg Mankiw, David Frum, Robert Reich and— errr, the guy Tupac sang about in his platinum coin song in ’94— have all suggested it. If I’m not mistaken Alice Rivlin and former GOP Sen. Pete Domenici mentioned the idea in their deficit cutting report. Hell, if you want to check off all the diversity boxes (for Republican, Tea Party favorite, presidential candidate and former Fed bank chairman, I mean), Herman Cain has mentioned the idea on the campaign trail. Since Social Security is off-budget anyway, so the Secretary could fund the tax cut by dropping some platinum honeys (as Tupac might say) into the SS trust funds without shocking the conscience of the deficit zombies.

      Finally, as Lord Keynes suggested, payroll tax holiday should automatically adjust counter-cyclically. Not clear from linked quote if by “business cycle” Keynes and James Meade thought it should be tied to GDP output gap or to unemployment rate (the latter would better target effective demand and is updated monthly instead of quarterly).

    • Clonal Antibody
      August 5, 2011 at 11:02 pm

      See Stephanie Kelton’s article – Why Won’t Progressives Act Like Progressives? and Scott Fullwiller’s comment on it.

  2. Clonal Antibody
    August 7, 2011 at 11:58 am

    Also see Ellen Brown’s latest posted first on Global Research and later on her blog

    The Trillion Dollar Coin Alternative

    The most direct solution to the debt problem is for the government to fund its budget with government-issued money. One alternative would be for the Treasury to issue U.S. Notes, as was done in the Civil War by President Lincoln.

    Another alternative was suggested in my book Web of Debt in 2007: the government could simply mint some trillion dollar coins. Congress has the Constitutional power to “coin money,” and no limit is put on the value of the coins it creates, as was pointed out by a chairman of the House Coinage Subcommittee in the 1980s.

    This idea is now getting some attention from economists. According to a July 29th article in the Johnsville News titled “Coin Trick: The Trillion Dollar Coin”:

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