Anything else you'd like to know?

I'm always glad to be of assistance.

Daves2017 wrote on Dec 18^th, 2024 at 9:00pm:


LOL,
I heard on ABC news radio today -
we have been in a per capita recession for the last  4 years.
The Govts only avoided an actual recession from mass immigration
and large Govt spending based on borrowed money.

Aren't we going to hit a trillion dollars of debt whilst we handed out our resources to every tom dick and harry for peanuts ?? They should have slapped a super profits tax like Norway did but now they are going to make us pay for their inactions

Bobby. wrote on Dec 18^th, 2024 at 4:40pm:


I'd like to know why you haven't acknowledged the error in your assertion printing money = inflation. 


Obviously in a recession the government has to print money, or risk a full-blown depression, as happened during the GD which only ended when governments  started printing money, to win the war....

Meanwhile Biden printing money to fund the IRA etc, has been accompanied by falling inflation. 

Sir lastnail wrote on Dec 19^th, 2024 at 8:54am:


Yes the fossil companies have the Oz government by the short and curlies - the losers. 

But re the government's  trillion dollar debt hit during the pandemic, to whom does that debt have to be repaid?

Don't we need an alternative arrangement regarding government debt accumulated in pandemics or recessions?

eg if another pandemic hit us next year, then Oz govt. debt would soon be $2 trillion... and the interest on the debt would be so large that taxpayers - on the hook for the  interest bill -  would be deprived of government  funds needed to fund vital government services.

By the way, re "taxpayer money":

https://billmitchell.org/blog/wp-content/uploads/2024/12/Season_2_9_promo.png

1st speaker: " It is the taxpayers' money that we are using".

2nd speaker: "Sorry to interrupt, but the government issues the money that taxpayers use".

There's a clue for an alternative arrangement for avoiding  issuing government debt, we already know government money printing doesn't cause inflation if certain conditions are met (in short, if supply of goods and services meets demand).

And during the pandemic, the  government should have only paid - using  free money issued by the government (see the cartoon linked above) - the essential  bills of locked down workers,  not send money to the bank accounts of  people who didn't need it (as you said), which was partly responsible for post-covid inflation (by increasing demand post lockdowns) - and also exacerbated  by supply problems relating to lingering illness  and the Russian war, Ukraine and Russia beng major global suppliers of food and fossil fuels, respectively.    



 

Bobby. wrote on Dec 19^th, 2024 at 2:14pm:


Such is the power of bond traders who demand higher interest rates when a government runs up debt which they think might be difficult for the government to pay back (eg they forced Lizz Truss out in the UK when she proposed lower taxes, without cutting spending).

Also heard on the ABC today: interests rates are rising in Brazil because the Leftwing government wants to deficit spend, to help reduce inequality (which is vicious in Brazil)  instead of reducing government debt as demanded by bond traders.

Vicious, private-sector thugs destroying democratically elected governments....

Currency-issuing governments should not be borrowing at all, they should ensure supply meets demand - a different metric.

Anyway, according to Paul Krugman (who is no MMTer):

(Raw Story)

Trump handed basic math lesson as Nobel prize winner takes apart policies

An Oz share market crash will be the least of the world's problems if your hero Trump, influenced by Musk - head  of the DOGE, has his way.....

At least Trump, back in 2016,  knew currency-issuing governments can print money without ill effect, provided supply (the nation's output)  meets demand.

 

if Wall Street gets a cold we get the flu:


https://edition.cnn.com/2024/12/18/economy/dow-10-day-losing-streak/index.html




New York
CNN
—
The Dow plunged Wednesday on a disappointing outlook from the Federal Reserve. In the process, the blue-chip index extended its losing streak to 10 days — the longest such stretch since Gerald Ford was president.

The Dow Jones Industrial Average ended the day down about 1,123 points, or 2.6%, after the Fed indicated in a policy statement that it is forecasting just two interest rate cuts in 2025, not the previously projected four. The Fed now anticipates inflation will remain stubbornly above its target range for longer than it had initially expected.

The Dow has fallen for 10 days in a row, the first time it has had a losing streak that long since September 20 through October 4, 1974, when the index fell for 11 sessions in a row.