How the media sells this economy or a lesson on how to massage numbers....

[BaiHu]

PragCap reader?

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[UgoDadeo]

PragCap reader?

Sent from my SCH-I535 using Tapatalk 2

Great primer on the mechanics of our monetary system. You can also visit the site at www.pragcap.com.

The point of his paper is that we (the people and our representatives) cannot make good policy if we do not understand how our own monetary system works. He debunks (correctly, in my opinion) common myths...like "we need to balance our budget" or "we collect taxes to fund our government" or "we issue bonds to fund our debt". This paper is a "must read" in my business. Lots to argue about....

the link should allow you to download his paper:

http://papers.ssrn.com/sol3/papers.c...act_id=1905625

Understanding the Modern Monetary System

Cullen O. Roche
Orcam Financial Group, LLC

August 5, 2011

Abstract:
This paper provides a broad understanding of the workings of the modern fiat monetary system in the United States. The work is primarily descriptive in nature and takes an operational perspective of the modern fiat monetary system using the understandings of Monetary Realism.

Number of Pages in PDF File: 40

working papers series

[fixer]

PragCap reader?

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Used to be.

I find MMT preposterous.

[UgoDadeo]

Used to be.

I find MMT preposterous.

Just for the record, MMR is different than MMT, but probably not enough to change your point of view.

No disrespect intended, for you may be very familiar with our monetary system and fiat currency in general. But it is my experience that 95% of the people, including our politicians don’t know how our currency system works. Typically, people just parrot what they have heard…”MERICA NEEDS TO GET ITS HOUSE IN ORDER AND STOP SPEND’N MORE THAN IT MAKES”.

There is some pretty thoughtful analysis that suggests if you balance the US budget for 10 consecutive years, unemployment would likely be over 50%! Not a good thing.

The most interesting thing to me regarding the “Balanced Budget debate” is how similar it is to the anti-gun debate. It is all largely based on misinformation and misunderstanding.

[BaiHu]

Oh math, it's hard, especially when using Excel.

I know all of you have heard about this Thomas Herndon guy and his refutation of R&R, but this is the best (meaning funniest) version of the story:

http://www.businessinsider.com/steph...-rogoff-2013-4

This is why peer review means something. Maybe the media should go after global warming alarmists the way they went after R&R.

[NickA]

And here's a link as to what will happen if we don't figure this out soon:



http://www.nytimes.com/2013/04/21/wo....html?hp&_r=1&

Thanks for that. My sister spent a few years there and Denmark is her go-to Utopia example for America, because of the low crime, fewer guns, etc. Now I see why crime is low there, why the hell would you bother to steal anything?

[fixer]

Just for the record, MMR is different than MMT, but probably not enough to change your point of view.

No disrespect intended, for you may be very familiar with our monetary system and fiat currency in general. But it is my experience that 95% of the people, including our politicians don’t know how our currency system works. Typically, people just parrot what they have heard…”MERICA NEEDS TO GET ITS HOUSE IN ORDER AND STOP SPEND’N MORE THAN IT MAKES”.

There is some pretty thoughtful analysis that suggests if you balance the US budget for 10 consecutive years, unemployment would likely be over 50%! Not a good thing.

The most interesting thing to me regarding the “Balanced Budget debate” is how similar it is to the anti-gun debate. It is all largely based on misinformation and misunderstanding.

I agree with your thoughts here.

I just haven't bought into MMR or MMT. I realize it is probably working right now just like gravity. I've read Cullen Roche's articles (sometimes twice) and I can say that I still don't think the fiat system is sound.

[BaiHu]

Sad when comedians are truly the only people reporting on facts...well at least more than the MSM accomplishes on any given year

http://www.thedailyshow.com/watch/we...he-golden-rage