When MMT was still fringe theory discussed on blogs like Naked Capitalism by 2013-2014, I was debating it with MMTers as well as Warren Mosler himself.
I had read Warren's book twice with notes.
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I had read Warren's book twice with notes.
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https://twitter.com/StotchLe/status/1410158241892417537
As Sales Engineer, my main point of contention was that suppliers would not always guarantee supply when money is printed and redistributed. I knew that because i saw that inside supply chains.
All MMTers called me idiot, as supply chains would never break down.
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All MMTers called me idiot, as supply chains would never break down.
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However, Warren Mosler himself was very, very, very polite, and never insulted anybody, ever.
He responded to me that MMT works when the system guarantees supply of goods and services, and if the system didn't, then MMT doesn't work.
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He responded to me that MMT works when the system guarantees supply of goods and services, and if the system didn't, then MMT doesn't work.
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That assumption that the system will always supply goods and services still reigns supreme in the minds of the people and academia.
Only supply chain insiders see that the system doesn't.
But, even supply chains insiders can't understand why the system stops supplying.
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Only supply chain insiders see that the system doesn't.
But, even supply chains insiders can't understand why the system stops supplying.
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You ought to shift to Theology (which includes philosophy) and reading of history in order to clearly see that most of the history, Humans actually refuse to supply goods and services beyond their basic needs, .... unless FORCED to do so. Hence, the need for Empires.
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Even in the case of city state model which Canaanites (Phoenicians) perfected, later adopted by Greeks, a disruptive force would always appear to destroy them.
Fact is that humans can't get along for too long, few of us seeks destruction and we manage to achieve it.
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Fact is that humans can't get along for too long, few of us seeks destruction and we manage to achieve it.
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So, historically, supply of goods and services has always been a matter of FREE WILL beyond basic needs, unless for to do so by the Leader or Elite with paid Militaries.
It's just humans.
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It's just humans.
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And the problem right now is exactly that:
99.9% of the people cannot even fathom in their mind that other humans close or somewhere in the world REFUSE to work to supply goods and services.
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99.9% of the people cannot even fathom in their mind that other humans close or somewhere in the world REFUSE to work to supply goods and services.
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This has occurred as a result of the extreme success that Pentagon had since Eisenhower farewell speed in 1962, when the MIC, Military Industrial Complex went on to secure global supply chains against the Soviets.
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Pentagon's wild success has made Westerners think that their daily life is guaranteed because somebody somewhere in the world will supply goods and services with no interruption, because.........(nobody cares about because).
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Which brings us to the point that practitioners like @Halsrethink @man_integrated @eshow1969 see that supply chains are breaking down, meaning that suppliers REFUSE to supply goods and services, but academia and people, which is 99.9% of the people, can't understand it.
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@Halsrethink @man_integrated @eshow1969 Hence, we the 0.1% practitioners who saw that supply chains were breaking down years ago, gradually are no longer called dumb and stupid by 99.9% of the people. We are now called dumb and stupid only by 98% of the people.
That's quite an improvement.
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That's quite an improvement.
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@Halsrethink @man_integrated @eshow1969 These 98% still hope that somehow someone in the world will resume supply goods and services just anytime now, maybe next month, or just next year, you know, it's coming.
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Well, I'm telling you, IT'S NOT COMING.
The world no longer wants to supply goods and services in exchange for digits on computers called dollars, when the the US gradually withdraw from the world stage during 12 years of the worst Presidents in US history, Obama-Trump.
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The world no longer wants to supply goods and services in exchange for digits on computers called dollars, when the the US gradually withdraw from the world stage during 12 years of the worst Presidents in US history, Obama-Trump.
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Supply chains will keep breaking down for as long as the value of the dollar, which is the interest rate, is 0.
Which means that the world will keep gradually refusing to supply goods and services to the West if the value of the currency they receive on computers is 0.
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Which means that the world will keep gradually refusing to supply goods and services to the West if the value of the currency they receive on computers is 0.
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See my pinned tweet.
The causes of the current breakdown of supply chains are 2:
1) 0% interest rates
2) US military disengagement from the world.
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The causes of the current breakdown of supply chains are 2:
1) 0% interest rates
2) US military disengagement from the world.
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For the supply chains to stop breaking down #krisonomics teaches the following:
1) Federal Reserve to increase interest rates to 4-6% overnight.
2) Pentagon resumes maximum control of global supply chains again.
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1) Federal Reserve to increase interest rates to 4-6% overnight.
2) Pentagon resumes maximum control of global supply chains again.
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