is this the same larry summers who said we dont need to regulate derivatives?
@Newlinjim5 жыл бұрын
AustralianLeprechaun I guess the old saying “With age comes wisdom” has some merit.
@dannywindham32955 жыл бұрын
The very same Larry Summers. The same Larry Summers who pushed to remove glass-steagall
@dannywindham32955 жыл бұрын
BLAIR M Schirmer Larry Summers is a fraud. Not only Larry Summers but Bob Rubin Alan Greenspan they are frauds. And to take it one step further they are firm believers in laws against fraud. I wish more people would pay attention to these types of things.
@joeblow39905 жыл бұрын
Yes, this is the same Larry Summers that opposed the Head of the Commodity Futures Trading Commission (CFTC). The chairperson of the CFTC was Brooksley Born and she wanted authority to regulate derivatives and other crazy Wall Street financial engineering time bombs. Summers, Greenspan and Rubin opposed her and ridiculed her. The three stooges (Summers, Greenspan and Rubin) were proven to be catastrophically wrong.
@dannywindham32955 жыл бұрын
joe blow in an interview on real news Bill Black said he could make a case against Robert Rubin. And Angelo mozilo and make it stick. Given the proper resources I'm sure he could make a case against Summers and Greenspan for fraud. Brooksley born try to do the right thing but these criminals in suits stopped her. Somehow or another more people need to become aware all these things. Be well
@theodorecurtis47095 жыл бұрын
Larry Summers played an important role in causing the last two global financial crises (1997 and 2008). Listening to him lecture other people on financial disasters makes as much sense as fielding advice from El Chapo on criminal justice reform.
@xvrar14 жыл бұрын
I prefer critics of an idea to actually talk about the idea. Like to see him and Stephanie Kelton do a head to head debate.
@xvrar13 жыл бұрын
@@kylem7365 the awful truth is that I havnt got around to reading her book cover to cover. What basic questions about MMT does she need to answer?
@BridgeTheRetirementGap3 жыл бұрын
@@kylem7365, The Deficit Myth is not a detailed explanation of all the details of MMT. So you are faulting it for being the introduction it is, just because you are too lazy to look at all the citations and references she has. Don't be a joke yourself.
@Sinleqeunnini3 жыл бұрын
@@kylem7365 Study David Graeber and know the depth of your faulty assumptions about what the debate should even be in the first place.
@kylem73653 жыл бұрын
@@Sinleqeunnini David Graeber 😂😂😂
@thomasd24442 жыл бұрын
@@xvrar1 kzbin.info/www/bejne/iXqsY4mKj7iSe80
@razisiddiqui75065 жыл бұрын
Is he still relevant? Good thing he wasn’t in Iceland, he would have been locked up along with bankers. People forget that he was one of the architects of 2008 crash.
@kylem73653 жыл бұрын
@Wilson he doesn’t have any. He just parrots talking points that are false.
@henrykaspar36343 жыл бұрын
Do you have substantive argument as well?
@dalebirononpoetry4 жыл бұрын
With all due respect, when you describe a theory incompletely and incorrectly, the fact that you are against it seems beside the point. MMT from my understanding, does not describe a world without limits where money can be "printed" without limit. The limit is productive capacity. Plus, we always seem to find the resources for defense spending and corporate tax cuts.
@thomasd24442 жыл бұрын
kzbin.info/www/bejne/iXqsY4mKj7iSe80
@stuffjunk59592 жыл бұрын
Excuse me but Larry Summers doesn't deserve any respect
@EkonRekon2 жыл бұрын
The economy was reverse engineered and they can't stand for it! You must remain confused and angry so that you shadow box specters your entire life
@HellCatLeMaudit2 жыл бұрын
His statement that a country does need fiscal stimulus when it is in the doldrums is exactly what MMT is saying. Fiscal stimulus is printing money.
@benjaminhiller4484 жыл бұрын
It would have been so much easier for him to say "I have no idea what MMT is"
@jeremyblank85905 жыл бұрын
The global desire to keep the dollar as reserve currency is eroding
@consciouscrypto30905 жыл бұрын
True, but they have to use some currency for trade, and as the saying goes, we're still the cleanest dirty shirt. You think they'd rather trust the Ruble, Yuan or Euro that's on the verge of breaking up? Maybe after a Euro collapse the Mark might replace USD as the global reserve currency. Until then, we've got a lot of leeway.
@smallbluemachine5 жыл бұрын
I don't see the desire changing. As the U.S picks fights within the Western Bloc, it's only a matter of time. And then what? War?
@Donovaan4 жыл бұрын
Well functioning MMT doesn't require your currency to have reserve currency status. Other countries like the UK or Japan are also doing some form of MMT successfully.
@themsuicjunkies4 жыл бұрын
Is this really because Fiscal expenditure by America or because the United State seems more like a failed state with nukes everyday? Leading in AI by chance but otherwise has no coherent plan for itself or the future of the institutions that allow the dollar to be the global reserve currency. If a demagogue like Trump can come and change any agreement commercial or otherwise then why would you want to put all your bets in a cannibal country, with its citizens and to ther countries.
@khalilmohammadmirza4070 Жыл бұрын
USA just tried MMT ecnomics for 2 years with stimulus checks. They already have massive inflation. Usa has been raising interest rates to fix inflation. If they tried MMT for everything. The economy would be to hot to handle. Most people won't be able to afford anything.
@ransom1824 жыл бұрын
What a joke. MMT is already in practice, though the politicians won’t acknowledge it.
@wierdjared5 жыл бұрын
We already are using MMT. That is where we are. This guy is a liar. The DOD overspends by over 1 trillion per year.
@Creshex85 жыл бұрын
Jared Kaiser I was wondering if anyone else noticed that same point.
@gorthorki4 жыл бұрын
And therefore it is a proof that MMT is a disaster.
@adamzielinski90774 ай бұрын
And the dollar is experiencing devaluation as a result
@malcolm42735 жыл бұрын
Larry Summers is a disaster
@coryhinman51344 жыл бұрын
disaster CAPITALIST--fixed.
@lyni505 жыл бұрын
Summers is full of neoliberal crap. MMT is simply a description of how the monetary system actually functions. It’s not a policy issue.
@Creshex85 жыл бұрын
lyni50 its a voodoo theory that involves sacrificing your children to false god-demons. An excellent way to destroy your country and make other countries despise and avoid your currency like the plague.
@RussCR51875 жыл бұрын
@@Creshex8 Do your homework.
@Creshex85 жыл бұрын
@RussCR5187 , Great response, full of details. It’s witty retorts like that which will push MMT into the mainstream.
@michaelvanryzin45925 жыл бұрын
"The laws of Arithmetic"?? How about the laws of accounting, where one person's debt is another person's income?
@hapahilo5 жыл бұрын
How about the law of reality where debt is created/issued, bundled, sold, re-bundled and re-sold over and over again? Debt ends up living on multiple accounting books which means multiple parties lay claim to the underlying debt. MMT just legitimizes what is already going on with out current banking system. Do you really think there is a debit for every credit? The only way out of this financial mess is to go back to a sound monetary system backed by audit-able assets.
@tsuba144 жыл бұрын
@@hapahilo who doesn't love paper gold!
@dempseys34 жыл бұрын
Michael, the laws of double-entry bookkeeping say one person's asset is another's liability. So if you have a bank account (your asset), it's the bank's liability (they owe you the money). Deficit "hawks" like the despicable Summers are like demagogues who stir up a mob of depositors to march down to the bank and demand it reduce its liabilities. An honest bank manager says "You know that will reduce the size of your accounts"...and an insane mob would say "We know...we just don't like the word 'debt'!" ... not very sensible.
@programking6553 жыл бұрын
How about a basic understanding of the equation of exchange, which would suggest that printing massive amounts of new money quickly would cause hyperinflation.
According to Larry, MMT asserts that: 1). The govt can just print money to finance itself & therefore never needs to worry about paying its bills..... 2). All government debt can be repaid by printing money..... Since even a cursory reading of its underlying axioms would quickly reveal that MMT doesn't come remotely close to making either of these two assertions, one has to conclude that Larry is either intellectually sloppy or just telling bold faced lies. His policy making record would suggest that the former is most likely the case.
@dempseys34 жыл бұрын
Setting aside the questionable provenance of any information from Summers, MMT is simply a description of how money works for issuers of currency vs. users of currency. We're all familiar with what a currency user must do to pay the bills, but it's different if you can print the means to repay those bills in the back bedroom...or down at the central bank. For currency users "Tax & Spend" is an accurate description. Revenue must precede spending. But for currency issuers, where would people get the dollars to pay those taxes if government didn't spend them out into the economy first? The accurate description of the procedure is "Spend first, then retrieve some dollars in taxes." And what do we call the dollars not retrieved, left out in the economy. Answer #1: the dollar financial assets of the population. Answer #2: National 'debt' Both answers describe *exactly* the same thing. This mirrors the situation of bank depositors. Their accounts are their asset, but to the bank, they are a liability (the bank owes depositors the money). Now imagine a mob stirred up by a demagogue like Summers marching down to the bank to demand it reduce its liabilities. An honest bank manager might say "But that would reduce the size of your accounts." A truly mad mob would respond "We don't care. We just don't like the word 'debt' because we can only understand the situation of currency users!" ...Not very sensible, even if Larry Summers has a string of honors and initials after his name.
@MilwaukeeF40C4 жыл бұрын
The government's spending creates even less economic value than banks loans do, though. I do not need the government to spend anything in order for me to find some trade worth making.
@5ynthesizerpatel3 жыл бұрын
@@MilwaukeeF40C - where would you get the surplus money from if the government doesn't create a surplus for the private sector to use?
@MilwaukeeF40C3 жыл бұрын
@@5ynthesizerpatel The inflationary monetary system is not desirable at all. Back to commodities.
@5ynthesizerpatel3 жыл бұрын
@@MilwaukeeF40C - which is basically what the MMT people are saying
@robertbrandywine3 жыл бұрын
@@5ynthesizerpatel How are the MMT people saying we should go to trading commodities?
@Achrononmaster4 жыл бұрын
This is a great reason to trust the MMT'ers. Summers was one of the gang who brought you the worst global financial crisis since the Great Depression. He does not understand how money works. If inflation is your fear, rather than unemployment and permanent indebted lower class, then there is nothing to fear from MMT. Moderate demand-pull inflation can ALWAYS be controlled by taxation and other fiscal contraction measures, and inflation of this sort is healthy and wholesome, it reduces the value of rich folks wealth and reduces the burden of debts. That's why the Austrian School hate inflation, because they recognise it as an indirect tax. Government deficits are private (non-government) savings. Gov deficits cannot cause inflation, savings have no inflationary pressure, it is spending on real goods which causes inflation, and even then, only if the demand exceeds the capacity of suppliers to raise their production levels. If Summers knew all this he would disown all his past advice and deficit hawk cheap talk. He is a world class anti-intellectual. In fact, I suspect by judgement of future historians, Larry Summers, Tim Geitner, Robert Rubin, Greenspan, Kudlow, and the rest, they will all be judged as virtual criminals, or at best as professionally incompetent and grossly negligent.
@wheresthepudding9463 жыл бұрын
he has ties with Jeffrey Epstein, which checks out to me.
@robertbrandywine3 жыл бұрын
Trying to slow down the economy by raising taxes is a non-starter. Congress is slow and always opposed to raising taxes. MMT better have a better way of slowing the economy that works automatically or that is insulated from politics.
@BridgeTheRetirementGap3 жыл бұрын
@@robertbrandywine, yes, there are other ways. One is the use of the Federal Job Guarantee, which is a prescriptive part of MMT. Here's more information on that: kzbin.info/www/bejne/j3bck2h3bKyBsMk
@jefflawrence58353 жыл бұрын
you're too kind!
@programking6553 жыл бұрын
Except that taxation didn’t work too well in the 1960s to control inflation.
@jsimonlarochelle Жыл бұрын
He cites examples of country that do not meet the "prerequisite" of MMT as examples of situation where MMT did not work so right there he is discredited. Also, MMT does not say that government can print arbitrary amounts of money. They state very clearly that the government is constrained by available resources among them the level of employment.
@wierdjared5 жыл бұрын
Hyperinflation in countries has to do with availability of goods and services in countries not money per say. These sanctions are the cruel tools of destroying currency. This guy is a bought and paid for talking head.
@henrykaspar36343 жыл бұрын
Nonsense. Hyperinflation is caused by a drop in demand for money.
@scabbycatcat42024 жыл бұрын
As a sovereign nation Britain produces its own currency. So how is it possible for a sovereign nation to run out of money and need to go to the IMF for a bailout like Britain did in 1976 ?
@rexstout81775 жыл бұрын
Larry Summers sounds like the sort of person who would argue to the death about the virtues of multi level marketing schemes, and take it as a personal insult if someone used math to tell him he was mistaken. Just to be clear MMT has never been implemented. Unlike Mr Summers regulatory regime regarding convoluted financial instruments.
@RussCR51875 жыл бұрын
The core of MMT simply describes the way government spending actually works today.
@BridgeTheRetirementGap3 жыл бұрын
Actually, since MMT is the DESCRIPTION of how Sovereign countries use their Fiat currency, it IS implemented. The problem is how few people understand that, even (and especially) economists and the politicians in charge. Paul Ryan was a perfect example. Had he understood what MMT explains, he would not have been made a fool of by Alan Greenspan in 2005. Perhaps what you are referring to is the Federal Jobs Guarantee program that is a prescriptive part of MMT.
@felroberto3 жыл бұрын
This comment show how little some people understand about MMT, godness how many times it has to be repeated MMT is a description of workings of money and banking in an economy and not a Policy Prescription?
@augmenautus Жыл бұрын
3 years later, inflation proved him right. MMT sounds great until a dozen eggs cost $8.
@dudewaldo43 жыл бұрын
Extremely wealthy man tells peasants not to look behind the curtain, money works exactly as I say it does!
@ANTEGEIASASRE3 жыл бұрын
money is not magic. its pretty simple: the more of it is printed, the less it is worth
@dudewaldo43 жыл бұрын
@@ANTEGEIASASRE Since the fed printed 3.7 Trillion over 2020, we should expect to see huge inflation in 2021? Still waiting...maybe by December?
@ANTEGEIASASRE3 жыл бұрын
@@dudewaldo4 its not a ups delivery. dont be surprised when u start seeing it though. and dont be surprised when the us starts sliding into chaos. u have been warned
So not "money printing" ... That means the United States is going to source dollars from somewhere else?? From where? The United States government is the sole source of dollars that except for taxes , that can be possibly used to pay taxes. Dollars don't grow on trees. Ordinary people don't make dollars. Only Uncle Sam has the monopoly on USA brand dollars.
@Bonescratcher3 жыл бұрын
The big difference is that those countries had debt in someone else’s currency. The US debt is in its own currency. So they can print as much as they like
@volta2aire5 жыл бұрын
Giving power back to the people is so dangerous. A strong middle class can stand against the new style aristocracy. Larry wants to keep you on a leash.
@sevilnatas5 жыл бұрын
The age of the amoral economist must come to an end. They need to expand their expertise from merely the mechanics of the economy and start taking into consideration the people that are at the mercy of that machine. They consider the corporations in their calculations but rarely consider the first order element of our society, people. We are not a nation of corporations, we are a nation of people, and the corporations are here to serve the people of this nation, not the other way around.
@fredschwarz33343 жыл бұрын
Actually we are a nation of individuals, who should interact with each other freely and voluntarily as they wish. Persons. Not "people."
@sevilnatas3 жыл бұрын
@@fredschwarz3334 I completely agree. We are a nation of individuals, who should interact with each other freely and voluntarily as they wish, based on the laws put in place locally and federally via our elected representatives. And I would like to add a thank you Fred on the constitutional lesson you have given me. Up until now I was under the impression that the Constitution started with "We the People..." but I am glad you let me know that it starts "We the Persons..."
@twhelostl6118 күн бұрын
Richard Werner could shut this nonsense down. Federal Government does not "Borrow" Taxes are not related to any private spending. He is talking about Vietnam. Seriously! Our monetary system is not a theory. China and US are constantly adjusting trade terms. Warren Mosler needs to tell him the "Money Story" it would be epic to watch.
@MarlonWeems4 жыл бұрын
This certainly hasn’t aged well
@Milton_Friedmanite Жыл бұрын
Tax revenue literally increased every single time taxes were cut aside from the Trump tax cut. Laffer always said there was a peak in the curve, the Laffer curve was never, “cutting taxes always = more tax revenue”. Economists did a study to show the peak is at 33%, so the Laffer curve has always been correct.
@OakhillSailor5 жыл бұрын
Where is the person from the other side?
@TheOldngrumpy15 жыл бұрын
If we actually "borrowed" money he would be correct, so it's a good thing we don't do that. Treasury bonds "reduce reserves" by offering interest to agree to trade liquidity for gain. Bonds are simply a liquidity swap, the opposite of QE. Why would the monopoly issuer of currency ever "borrow" its own currency to fund spending when it can, and does create as much as it wants to via appropriations? There is no debt except what the government owes in tax credit, which is $1 for every dollar of currency it spends. When a bond matures it is simply moved back to the reserve account of its owner with a small interest payment. Bond holders don't set the interest rate and can never "call in" their debt holdings. Is $22 Trillion too much currency to have in circulation? Remember that bank reserves created by credit cannot retire the debt that created them or be net saved as a store of value. Only money created by Congress can do either. The Fed and Treasury have a combined balance sheet that always equals the national debt. This is obscured as long as GDP growth is sufficient to roll over private debt, but it becomes very apparent as soon as the private sector economy hiccups if the actual net money supply is insufficient. Paying the debt is no more complex than moving bonds back to reserves and could be done tomorrow before noon if Congress wanted. However, paying it by reducing spending and collecting taxes will leave nothing in the economy, as taxes are destroyed, as is revenue from bonds, upon entry to the government sector, not recycled to spending.
@xtra-oi9xb5 жыл бұрын
.... thanks Grumpy ... you really helped me understand the process
@DrChill25 жыл бұрын
What BS. MMT doesn't say "you don't have to worry." MMT-ers say "Worry about Real Limits and Inflation, not running out of -YOUR OWN MONEY."
@alros12125 жыл бұрын
Imagine thinking that printing money is the solution, lmao. My child says shit like that.
@iamned57174 жыл бұрын
no money printing, no money, no capitalism, no job.
@MilwaukeeF40C4 жыл бұрын
@@iamned5717 Capitalism is nothing but voluntary interaction. It does not require government money.
@tooperupsutin694 жыл бұрын
@@MilwaukeeF40C yeah keep buying Bitcoin you Nerd
@BarrySlisk4 жыл бұрын
@@TheTazzietiger Gold used to be money. Try to print that.
@BarrySlisk4 жыл бұрын
@@tooperupsutin69 If you don't have anything intelligent to say......
@milesromine9960 Жыл бұрын
MMT IS A DESCRIPTION OF HOW THE FEDERAL GOVERNMENT CREATES AND USES MONEY! MMT is not a policy. MMT is not something we need to do. MMT is what we are doing alread:
@The_Real_Devil5 жыл бұрын
This strawman argument is pointless without getting Stephanie Kelton or Warren Mosler on to debate him and provide the other side of the argument.
@pakpala15 жыл бұрын
Larry Summers Theory was the recipe for the 2008 crash and the growing inequality.
@bargdaffy1535 Жыл бұрын
Larry Summers is the Scientologist of Socio Economic theory.
@blakelewison98723 жыл бұрын
Why do we take these old fools serious?
@Rob-fx2dw3 жыл бұрын
agreed - I don't.
@elliotthovanetz194511 ай бұрын
15 years of MMT got us to this mess today. High inflation, bloated fiscal deficit off a cliff, the average person's purchasing powere being destroyed, etc.
@Prophet3084 жыл бұрын
Summers makes a fool of himself again. After losing billions $ for Harvard, he doesn't even realise QE is a version of MMT.
@amabdall4 жыл бұрын
what people like Larry summers dont understand is MMT is not telling us we should do this or that. MMT explains what is already happening. Literally, the government just printed between 3-6 Trillion for COVID stimulus and buying corporate bonds. So ya you may hate MMT but it is exactly what is happening now
@The_General_Zubas5 жыл бұрын
1:40 Idea? Since 1970 it's been practice. I think thats the year we got off the gold standard. MMT isn't actually a theory. Its common practice.
@ajx97475 жыл бұрын
He is talking about scale
@ajx97475 жыл бұрын
U can't run 6 trillion dollar deficits every year
@The_General_Zubas5 жыл бұрын
@@ajx9747 Not without Taxing properly, No. Things like the Bush/Trump tax cuts just create the issue of too much money in the system. Too much money = Deflation Deflation = loss of purchasing power, which in turn devalues the dollar. As long as we keep the Taxes at the right percentage points for both buisness and Personal, we can spend money on everything. I mean, we JUST did that with the Military. We can do that eith Domestic programs too.
@The_General_Zubas5 жыл бұрын
@@ajx9747 to me, the Defecit is the amount of money actually lended out into the system. At least from my studies anyways.
@The_General_Zubas5 жыл бұрын
@@ajx9747 I agree though. The amount of money being taxed and the money being spent is completely non concurrent, and one of the big reasons why the slowdown happened. No one spent the money from the tax cuts. So technically, it didn't work. Unless you count stock buybacks.
@medusaskull96252 жыл бұрын
Larry sounds very logical and fair. I don't know why such an idea isn't welcome into our fiscal policy, instead they are keeping on chasing wild geese.
@robertasirgutz8800 Жыл бұрын
It's been in place for a while. Countries he mentioned, aren't the reserve currency. Our power has degraded their economies. Taxes don't pay debts, are in place to stimulate foreign investment. Budgets are a myth. There's always money for bailouts and the military.
@Jone9525 жыл бұрын
This really makes me lose respect for titles like "Harvard President Emeritus"
@BridgeTheRetirementGap3 жыл бұрын
And well you should. he's one of the chalk-pushers who never learned how the US Treasury actually works, even when he was working there.
@thomasd24442 жыл бұрын
kzbin.info/www/bejne/iXqsY4mKj7iSe80
@Vurtcone4 жыл бұрын
The only criticisms of MMT that seem logical are that corporations get access to higher interest on treasury bonds (because they buy larger amounts of them) that the average American who buys those same bonds doesn't. Also, the interest on these bonds is a passive profit flow into these corporations that the average American cannot enjoy in the same amounts.
@BarrySlisk4 жыл бұрын
What about inflation destroying the middle class savings?
@ozgal6064 жыл бұрын
We will see how Australia pulls out of this I guess 🤷♀️
@theworldthroughmymind57724 жыл бұрын
More tax equals less economic activity..Fiscal responsibility is constantly ignored by our government and yet it is the ONLY cure.
@zeus66623 жыл бұрын
Larry Summer: countries in South American don't control their own currencies and their debts were all in foreign currency amounts. America's debt are all in US dollars. Learn how to read Larry.
@patakainstitute3463 жыл бұрын
If its 'Bills' are in its currency, who else is allowed to pay it? only the currency issuer...simple Larry.
@Rob-fx2dw3 жыл бұрын
Wrong. - Government does NOT issue currency. Government gets it's money from the Reserve bank by selling bonds to the Reserve bank and to private entities. Those bonds mature in time and have to be paid out with taxpayer money since there is No other source of money that government has access to. You don't know how to follow a financial money trail because if you did you would realise this.
@benhendricks2604 жыл бұрын
MMT is about balance also... taking money out of the system is an important tool just as much as putting money into the system.
@khalilmohammadmirza4070 Жыл бұрын
USA just tried MMT ecnomics for 2 years with stimulus checks. You already have massive inflation. Usa has been raising interest rates to fix inflation. If you tried MMT for everything. The economy would be to hot to handle. Most people won't be able to afford anything.
@elliotthovanetz194511 ай бұрын
Yeah, the Biden administration understands the taking money out of the system part of this 'theory' with its massive deficit spending into oblivion 😮
@hannsjurgenhodann62685 жыл бұрын
Larry Summers says that he likes fiscal policy, but doesn’t seem to understand that MMT is all about sound fiscal policy! His objection to MMT is either based on a lack of understanding of MMT or more likely on ideological bias.
@shpensive4 жыл бұрын
MMT isn't "a theory that all debts can be paid for by printing money". It's the observation that a state that issues its own currency can technically spend as much as it likes, but the effects of spending create soft economic constraints: spend too little (/ tax too much) and you get unemployment, spent too much (/ tax too little) and you get inflation.
@Guizambaldi2 жыл бұрын
This is just a change in perspective, but it does not make any qualitative difference from regular economics.
@thejeffinvade5 жыл бұрын
Surprise surprise, who would have known printing money to support socialism is a bad idea. Just ask third century Rome, Weimar Republic Germany, China in 1947, Yugoslavia in 1994, Zimbabwe and Venezuela.
@thejeffinvade5 жыл бұрын
@@Jordan-ck9qv printing money leads to hyperinflation, socialism or not
@The_General_Zubas5 жыл бұрын
@@thejeffinvade printing money without properly taxing leads to this. Which is a problem we have even without the knowlefge that this system works
@pakpala15 жыл бұрын
@@thejeffinvade HOw much did Bernake print after the 2008 crash? How much hyperinflation came 11 years later?
@thejeffinvade5 жыл бұрын
@@pakpala1as percentage of GDP, way less than Venezuela
@pakpala15 жыл бұрын
@@thejeffinvade Bernake printed $3.6 trillion aka quantitative easing. Y'all predicted all kinds of doomsday. It didn't happen.
@mrfuzztone5 жыл бұрын
Larry Summers has said that the 2017 tax cuts leading to over $1 trillion of stock buybacks was the wrong thing to do. He said the money should have been spent on fiscal stimulus to repair and build infrastructure. That should have been the headline instead of the bogus MMT is a recipe for disaster. The Right's 2017 tax cuts are a recipe for disaster. Larry is funny. He may not approve of MMT but he does say a lot of things that rich business leaders and politicians don't want to hear.
@HellCatLeMaudit2 жыл бұрын
CNBC is trying to attract watchers of Fox News.
@grrr2285 жыл бұрын
I’m looking into this much further. This is interesting
@jefflawrence58353 жыл бұрын
come on down the rabbit hole
@charliethecockatoo21593 жыл бұрын
Look into Stephenie Kelton. She's the one to read.
@toddymcgann49213 жыл бұрын
I highly suggest when reading about MMT also read about the how increases in M2 and the velocity of money leads to inflation. Which leads to much more human suffering then any other economic event
@armelfrancois70093 жыл бұрын
@Toddy McGann capitalism?
@toddymcgann49213 жыл бұрын
@@armelfrancois7009 really has nothing to do with with capitalism. Monetary theory more broadly can be applied across economic theory. As we are seeing now, increase in money supply = inflation
@parallaxcrafttale2 жыл бұрын
Lmao typical corporate goon misrepresenting MMT
@wierdjared5 жыл бұрын
Fiscal stimulus is due to MMT. This guy is is talking out his ass.
@vandertuber5 жыл бұрын
Larry Summers wants more tax and spend, economic stagnation and deficits at the same time, and also wants weak trade for the US.
@Rob-fx2dw Жыл бұрын
The essence of MMt's economic argument that federal government politicians should have "Policy Space" to spend in excess of it's income for what it considers is better for the economy. The same in their minds a great theory that talks about the evil of inequality but when it comes to the reality only politicians should have "Policy Space" when everyone else like the average person and those on less than average incomes should be restrained and have no "Policy Space" to spend more than it's income. Not you, not anyone else but politicians because the MMT pushers are telling everyone else that they are all too stupid and the irony of it all is some are stupid enough to believe them.
@Achrononmaster5 жыл бұрын
And you trust this guy? Summers was the epitome of banality of evil, telling Varoufakis to step in line with neoliberalism or be thrown out of the big boys play pen. Larry Summers is perhaps in the top 100 evil people this century. He has no idea about monetary dynamics modelling, Steve Keen would obliterate Summers in an economics literacy challenge like he devasted Krugman, like frickin Hulk destroying Loki - and yeah, I know Loki got up and shrugged his ass whooping off, and that's part of the point, neoliberals are doing Zombie economics, they rise from the dead every time logic and reality own them
@ChannelMath2 жыл бұрын
Summers' life and work has been to promote neoliberal economic policies for the dominant "centrist" elites. He opposes MMT only because MMT is seen by economic progressives as a way to argue for the policies they want. He proves this here by only arguing against those progressive policies. But MMT being seen as an argument for those policies over the current, dominant monetary and fiscal policies is contingent on the current situation, actors, and ideologies. That's why the originators of MMT don't argue for either policy (you don't see biologists arguing for "more evolution"), and that's why Summers (apparently) doesn't even have to know what it is to argue against it. (this seems to be a uniquely unfortunate property of the "science" of economics)
@tuckerbugeater3 жыл бұрын
We're not going to do MMT, we're just going to print a bunch of money.
@thomasd24442 жыл бұрын
kzbin.info/www/bejne/iXqsY4mKj7iSe80
@NathanRyanAllen5 жыл бұрын
MMT is modern economics... to call MMT a 'disaster' is calling our current system a disaster, just fyi.
@NathanRyanAllen5 жыл бұрын
The govt has been deficit spending for 20 years but apparently Summers thinks that the govt can't just create money (keystroke, data entry, not print btw) at will, even though they have for a long time.
@BC-vt8xj5 жыл бұрын
Yes, our current system is a disaster waiting to happen. MMT is the "Kick the can until you're dead" Theory. Eventually, the music stops and not everyone gets a seat.
@NathanRyanAllen5 жыл бұрын
@@BC-vt8xj Care to elaborate on that claim?
@BC-vt8xj5 жыл бұрын
@@NathanRyanAllen Eventually (on no specific time horizon because I don't predict the future), the bond market will turn bearish as the US prints more dollars and buyers see there is no chance of repayment. This will accompany a deflation in the economy. The Federal Reserve will be forced to return to quantitative easing despite never re-normalizing. This will spur inflation again, but because the economy is already running out of growth potential, the recovery is even slower than the last. People start losing faith in the US economy and US Fiat dollars. Hyperinflation ensues, which helps people pay debt, but at that point the system will need reset. MMT works until it doesn't and then calamity ensues.
@NathanRyanAllen5 жыл бұрын
@@BC-vt8xj No chance of repayment? Under what circumstances? A) The US is the issuer of its own currency, it can never 'run out of money' to pay its bonds. The US has never, in its entire history, been unable to service bond payments. B) Under current law, special primary dealer banks must buy new issues of treasury bonds, and then they can either keep them, sell them to the public, or sell them to the Federal Reserve. The premise of your argument is flawed.
@Rob-fx2dw Жыл бұрын
Historical fact is that Larry has been proven right when asked "isn't it working now"? by the host. The market was slowing then and the evidence is now the rising cost of interest and lower growth now reflected in stock price falls.
@Rob-fx2dw4 жыл бұрын
"Political Actors " good description of them at teh 20 second mark of this article. That's it. "actors" .
@The_General_Zubas5 жыл бұрын
Dwight Eisenhower begs to differ.
@Mirghanii4 жыл бұрын
2:30 is the important part of the video. In which Sara asked Summers if the US government (Federal Reserve + DoT) is already using MMT; which is partially ture when it comes to "fiscal" policy in certain times to finance deficit or to stimulate the slow economy(QE), but it would be dangerous to use it as a "monetary" policy.
@theodusmcnair38205 жыл бұрын
How do you write for papers, but don’t read what your writing about!?! The plan is a tax that covers you medical needs with a co-pay. No more insurance companies making decisions with the excess money yearly. So a tax to replace the payment coming out of your check. So medical isn’t profit driven. Hope you get Donkey of the day!
@mahaishraja54495 жыл бұрын
prof summers wouldnt know a sectoral balance if he tripped over one. the accounting reality is that if the private sector runs a financial deficit against the rest of the world, the government has to cover the financing gap minus the direct capital inflow to prevent a deflationary liquidity crunch. if summers et al were correct, rising government debt should have seen taxes, interest rates and inflation rise over the last two decades. instead the 10 year bond rates have collapsed, inflation threatens to turn into deflation , and the governments doling out tax cuts, and every dark dingy corner of the planet you go to, you have people who will gladly take an american dollar off you. try do that with yuan. furthermore i dont see anyone putting there hand up to run a trade deficit against the americans. to take trumps idea to the extreme , if the americans were to achieve a trade surplus over a prolonged period of time, the rest of the world runs out of american dollars , and then it gets really tricky as to whether you accept other peoples currency. summers is talking accounting nonsense
@jimb54215 жыл бұрын
Hmm, partially right however, that deficit reguires something they can buy with the trade I'n balance so real estate, natural resources, farm products, corporations are sold to foreign investors with trade deficit capital. Creating inflation and price hikes in the us. Add the fed printing money and banks levering, investors chur.ning in market inflation can then be blamed on non existing wage increases.
@raybod17755 жыл бұрын
Jim B True, when we run out of stuff to sell, the dollar will collapse with nothing to prop us up. We started out the greatest creditor nation in the world with great paying jobs and pensions before Reagan and the Republicans took over, now we're the greatest in debtor nation in the world with few pensions and less great paying jobs with our economic size dropping from #1 to #3 after Europe and China.
@vasilymelnikov73463 жыл бұрын
Completely wrong
@hamzah.73173 жыл бұрын
lol you call that a taxes cut ? :sips_martini_in_dubai:
@earltaylor60712 жыл бұрын
This guy is doing damage control by incorrectly describing a theory. I am disappointed in this guy. He is definitely bias. Good job with protecting your buddies,Larry. Maybe these other economies monetary policies failed because they did not follow the laws of supply and demand. Larry is like a doctor who debunks all herbs.
@TheJohnmmullin3 жыл бұрын
He hasn’t been proven right. Yet.
@Peter-tg9zv3 жыл бұрын
Modern monetary theory simply explains what already IS. It would be like saying “evolutionary theory would be a disaster”. Larry has been wrong about everything before anyways.
@Rob-fx2dw3 жыл бұрын
More rubbish - You need to get some legitimate understanding of finances. You d also need to stop denying facts. MMT has policies including a job guarantee and those are POLICIES advocating how it should be done not descriptions of system . Your reference to evolutionary theory is interesting. It is backed by real and historically verfiable facts. MMT is in denial of many historical facts for instence like believing taxes don't fund government spending when without revenue from taxes ther never could have been a budget surplus or budget balance which was often the case or a even a small deficit which also was the case in many years. When MMT was put to the test of explaining historical facts it will fail.
@ernestjones10385 жыл бұрын
I don't know where he learned about MMT. But he's got it wrong. MMT does not say the government does not need to pay its bills. That's missing things completely. The federal government supplies the currency to the economy, taxes have a purpose but not for funding the government.
@rexstout81775 жыл бұрын
He does know. He's deliberately misrepresenting. He knows what he's doing. In his mind he thinks he's some academic version of Machiavelli or something.
@BarrySlisk4 жыл бұрын
Well it does not pay the total of the bill because new money decreases the purchasing power. So in fact the lender is cheated. He is not paid back the expected purchasing power. Maybe that's what he meant?
@ernestjones10384 жыл бұрын
@@BarrySlisk 1. How is a little inflation a recipe for disaster. 2. MMT is the study of what actually happens when the government pays for things. It is only a theory that more dollars in the economy decreases the value of those dollars, and reality is constantly showing this theory to be wrong. As Ice Cube recently pointed out, the US government has issued 3 trillion new US dollars this year and there has not been inflation.
@BarrySlisk4 жыл бұрын
@@ernestjones1038 "How is a little inflation a recipe for disaster. " Quote me writing that please.... "As Ice Cube recently pointed out, the US government has issued 3 trillion new US dollars this year and there has not been inflation." As much as I respect....Ice Cube..... :)
@ernestjones10384 жыл бұрын
@@BarrySlisk Ice Cube, in that statement that is clearly true, has demonstrated a better understanding of economics than you are. The evidence is in recent news and we are currently experiencing the lack of inflation. The evidence from this year shows that the thinking that Federal Government currency creation does not automatically lead to a depreciation of the value of the currency. A large portion of MMT involves a much more rigorous understanding of inflation.
@HeritageWealthPlanning4 жыл бұрын
So France has the worlds currency in the 70s? Wow, Who knew?
@iFreeThink3 жыл бұрын
I think it's Encarta and Kindles. Because Germany couldn't keep up.
@johnsuder76713 жыл бұрын
What YOU think it not fact !! It's greed the quest for power .
@robgoren86284 жыл бұрын
How about falling for Mossad honeypot traps, Larry? Would that be a disaster?
@testblustacks57995 жыл бұрын
Micro finance money is lent to two unemployed land owners; farmers A and B. They buy seed and tend to their farms. After a few months they sell the crops in the market and pay back the loan. Farmer A is lent money from a bank according to Fractional Reserve Banking Farmer B is lent newly created money directly from the central bank which increases the national debt (which is all denominated in the country's own currency). It just printed money as according to MMT. Is the effect on inflation for farmer A different to farmer B?
@sherdayton81535 жыл бұрын
This guy knows nothing about economics.
@marsfan303 жыл бұрын
It's dangerous to not create humane programs for all.
@blakelewison98723 жыл бұрын
Larry Summers is an old fool who’s still stuck in the 20th century. Wake up Larry, we live in the digital era now!
@ianperfitt3 жыл бұрын
MMT is already in practice dude...stop lying...
@timn50083 жыл бұрын
Summers doesn't seem to understand the subject. Or he is simply pretending to not understand. I'm going to go with the former. Summers, whilst working years ago at some investment house, was described as being a coatrack. His reputation precedes him, but he's listened to. He, like so many of the Meritocratic types swarming Washington, continues to fail upwards, and make a fortune doing it.
@sakthitharan6323 жыл бұрын
yeah he is just some crank who accidentally got phd in economics
@theresasanders82515 жыл бұрын
Neoliberal corporatist trying to preserve the Status Quo & either doesn't understand MMT or is PURPOSRLY misrepresenting it. It has NEVER been about "just printing" money! "TRICKLE DOWN" is the VOO DOO ecnomics! #LearnMMT!
@hamzariazuddin4245 жыл бұрын
is there any books explaining these examples he gives of printing deficts and how its conistently gone wrong with france, britain and latin america?
@Creshex85 жыл бұрын
I can’t believe she said that, why can we just print money since we have the world’s reserve currency? Are you insane, lady???? If you were a resident of another country, and you were to hear that country was going to implement what you just said... would you want to store your value in that currency? That is absolutely nuts. You might as well preach that you are going to abuse your lenders’ trust and destroy their savings.
@obZidianZ063 жыл бұрын
Ppl in chat: call it what you want but big government goes against this countries founding. You really want a larger central bank dictating winners and losers? What if your service/good or company isnt "woke" enough, what then? Becareful what you wish for
@OWENLN5 жыл бұрын
Summers is totally misrepresenting MMT, it's alway ok to bailout the private banks with MMT but for the serfs not so much.
@rafaelluna25294 жыл бұрын
TAARP wasn't MMT, the US then received the bailout money with interest, so the people ended up gaining from the bailout
@rpm8865 Жыл бұрын
Let’s bring on the guy that lost Harvard $1.8 Billion
@michaelbond7815 жыл бұрын
It's going to end in disaster.
@hounddog72565 жыл бұрын
This is what Jim Willies says about MMT... "Reich Economics by any other name." "Modern Monetary Theory is total rubbish and those who sign on are rather moronic but it proliferates as new dogma in sort of a pathetic apologist manner almost funny to try to explain the broken financial system"... Miracles do happen because I never thought I'd ever see these two agreeing... 😂
@angelaj89585 жыл бұрын
there is no amount of debt the banks and gov't won't agree to when they profit from it, but suggest it for people to live on, and that is claimed to be just wrong. would like some links to support his claims that he supported more help for the middle class than the billionaire class
@Ella-zh9iu4 жыл бұрын
Print a bunch of money and you get inflation maybe even hyperinflation especially if most of the output stays the same. Right now we are experiencing supply shock and how do you bolster the demand side when millions of people are under shelter in place and social distancing orders? I would think a stimulus package would need to pay people’s rent for as long as shelter in place is under effect,1200 dollars won’t pay the rent for one month. If you give airlines billions of dollars that still doesn’t increase the demand for airline tickets people are afraid of being exposed to coronavirus in airline terminals and airplanes so how does that work?
@michaeljaniszewski16843 жыл бұрын
It's how things already work. It's not political. But, monetary operations is boring stuff.
@Inazarab3 жыл бұрын
Larry Summers is a fool.
@mikewatson22705 жыл бұрын
Sanders 2020. Let's print money for the people (guaranteed employment) instead of printing money for the banks (quantitative easing). Right now the banks have got more new money in quantitative easing than the total for the rest of the economy, including foreign governments that use US dollars and including petrodollars.
@u235u235u2353 жыл бұрын
we need people in jobs working and paying taxes pursuing the rat race. suppose MMT is real and accurate, it's not a good idea to key in the masses to destroy their illusions that they need to get up early and get to work and struggle to pay bills. i want people working and studying hard to get that job and be productive working 40 hours a week. that's how stuff is done and made. workers working to pursue the dreams of entrepreneurs makes the country great. keep working hard and paying your taxes and bills. this is what gives value to money, and yes taxes give value to money, of course because you give it up against your will, something you worked hard to get. it's all about creating confidence in the US dollar, and our GDP/GNP, and demand for the US dollar internationally, which is created through our products and services, and other things like the international requirement to buy OIL with dollars. protect the US petro dollar and destroy any nation that seeks to erode US access to cheap raw materials and labor markets. secure favorable terms of trade for US companies, punish nations seeking to tax our companies or fine them, threaten nations trying to rise up with competing international systems that seek to erode US dominance. e.g. belt and road must be destroyed. ideally, china is broken up into five different nations.
@stevencrane92595 жыл бұрын
If you do not understand how interest works with saturation, be still. We WILL soon have a high inflation rate and it will cost jobs all over the world. The harm will be to vari interest home loans and credit markets. It will be 2 or more times as bad as 2005 till 2015.