Welcome to the new version of European Tribune. It's just a new layout, so everything should work as before - please report bugs here.
Display:
Yes and no.

The MMT'ers are right when they talk about the financial side of things. But I find that they sometimes get so caught up in debunking financial BS that they pay too little attention to the needs of the physical economy.

In particular, a few of them argue that the US' foreign balance is of no particular concern since its import costs are all denominated in US$. I disagree with that position, because the US' foreign balance position means that if other people start demanding hard currency for their stuff, they risk cutting off the flow of goods and services on which the American society depends to be in a state of not-revolution. Since I rather like my society to be in a state of not-revolution, and since I assume that this disposition is shared by most well-fed, reasonably affluent people, knowing that my society's continued being in a state of not-revolution depended on the largess of foreign powers with possibly divergent geopolitical interests...

... would not improve the quality of my sleep.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Aug 16th, 2011 at 05:35:42 AM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

The new Greek government program

by talos - Feb 23
158 comments

Two-thirds gone

by DoDo - Feb 22
6 comments

Did Schäuble win?

by Migeru - Feb 21
249 comments

LQD - On Monetary Structure

by ATinNM - Feb 20
13 comments

Varoufakis and the memorandum

by Migeru - Feb 13
88 comments

After EU

by DoDo - Feb 12
261 comments

Recent Diaries

The new Greek government program

by talos - Feb 23
158 comments

Two-thirds gone

by DoDo - Feb 22
6 comments

Did Schäuble win?

by Migeru - Feb 21
249 comments

LQD - On Monetary Structure

by ATinNM - Feb 20
13 comments

Varoufakis and the memorandum

by Migeru - Feb 13
88 comments

After EU

by DoDo - Feb 12
261 comments

Greece's Plan B?

by Migeru - Feb 3
266 comments

Deflationary QE

by afew - Jan 28
31 comments

More Diaries...

Occasional Series