Daily Archives: January 20, 2015

Bill Black appearing on The Real News Network

Posted on January 20, 2015 by admin | Comments Off

NEP’s Bill Black appeared on The Real News Network (TRNN) discussing the bill that the House of Representatives passed that further weakens financial regulation. The video is below. If you wish to view the transcript at TRNN, click here.

Comments Off on Bill Black appearing on The Real News Network

Posted in William K. Black

The BBC and the Economist Combine to Try to Defeat Syriza

Posted on January 20, 2015 by William Black | Comments Off

By William K. Black
Bloomington, MN: January 20, 2015

As the Greek election nears, the mainstream media is ramping up its efforts to attack Syriza. As I have often explained, the trauma caused by the Washington Consensus’ economic malpractice in inflicting austerity on Latin America led to the election of a substantial number of leaders opposed to austerity and the troika’s infliction of austerity may lead to a similar dynamic in the EU. The BBC and The Economist agree that this could occur – and it terrifies them. A January 19, 2015 BBC article, presented as news rather than opinion, is entitled “BBC Democracy Day: Europe ‘faces political earthquakes.”

The article abounds in unintentional self-parody. First, the article admits austerity is a major driver of the “political earthquakes.” For reasons that pass all understanding the BBC hired the Economist’s “Intelligence Unit” to write what any right-wing BBC columnist would have written for no additional fee. Given that the Economist is one of the entities most culpable for the economic malpractice of inflicting austerity on the eurozone the idea that it is good journalism for them to opine about their opponents is sad or laughable depending on how one responds to absurdity.

Continue reading →

Comments Off on The BBC and the Economist Combine to Try to Defeat Syriza

Posted in William K. Black

Tagged BBC, Economist, greece, Syriza, troika

The Politics of MMT (Strange Bedfellows)

Posted on January 20, 2015 by admin | 59 comments

By Jonathan Denn

There are the cut-and-dried facts, about how money actually works, which MMT succinctly explains—that those who were unaware—seem to readily grasp.

The US is the issuer of currency not just currency users like households, towns, businesses and US States.
If a country has a marvelous productive capacity, a free floating sovereign currency, and little to no debt denominated in foreign funds—then there is no external reason it cannot spend regardless of taxing or borrowing.
The last seven US depressions were preceded by seven rare public surpluses.
A public deficit is a non public surplus, which means a private surplus after taking into account what leaked overseas.
A private surplus is the point of a prosperous nation, as long as it doesn’t cause hyperinflation.
Banks create money, too. But since it usually has to paid back someday, those dollars are temporary.

The conclusion is that the US is the monopoly issuer of net financial assets. So, given a stable foreign trade balance the only way the private sector can grow is with increased government spending, asset appreciation (inflation), people spending out of savings, or people/businesses borrowing (temporarily) from banks.

Continue reading →