MMT's Godfather Says the US Government Is Spending Like a Drunken Sailor
Odd Lots8 Heinä 2024

MMT's Godfather Says the US Government Is Spending Like a Drunken Sailor

Modern Monetary Theory has gained prominence over the last several years by offering an alternative view on the constraints to fiscal policy. The basic gist is that the size of the deficit is not per se problematic. What matters are real resource constraints, and that if government spending gets too high — or is spent in unproductive ways — then inflation can materialize as too much money collides with insufficient supply. Another argument that some MMT adherents make is that the conventional path to fighting inflation (higher interest rates by the Federal Reserve) can actually be inflationary, because the coupon payments made by the government to Treasury holders constitute a form of government spending or fiscal expansion. In this episode of the Odd Lots podcast, we speak with Warren Mosler, the intellectual godfather of MMT, to explain the mechanisms at play and assess the current macro environment. Perhaps surprisingly, Mosler is concerned with the combination of high government debt loads, high deficits (which he characterizes as spending like a drunken sailor), and the orthodox approach the Fed is taking to fighting inflation. With debt as high as it is, the annual interest payments due to these rate hikes has gone up significantly, creating a situation that mainstream economists might call Fiscal Dominance. He explains how this environment is a recipe for consistently higher and sustained inflation in the years ahead.

See omnystudio.com/listener for privacy information.

Jaksot(1187)

Why the Trump Administration is Now Taking Equity Stakes in American Companies

Why the Trump Administration is Now Taking Equity Stakes in American Companies

It's nothing new for the US government to use public money to support private American companies. The Biden administration, via CHIPS and the Inflation Reduction Act, was aggressive about using loans ...

16 Loka 202546min

Why Argentina Needs Bailout After Bailout After Bailout

Why Argentina Needs Bailout After Bailout After Bailout

Argentina is getting bailed out again, with $40 billion of help from the Trump administration. Of course, this is a recurring phenomenon for Argentina, and this time it's happening under the free mark...

15 Loka 202539min

Andrew Ross Sorkin on the Stock Market Crash That Shattered America

Andrew Ross Sorkin on the Stock Market Crash That Shattered America

Almost everyone is talking about us possibly being in a bubble. Regardless of how AI investment ultimately pan out, there is an incredible amount of retail speculative mania in the air. So, how does t...

13 Loka 202540min

John Ganz on the Era When America Was Consumed by Panic With Corporate Japan

John Ganz on the Era When America Was Consumed by Panic With Corporate Japan

These days, there's a non-stop drumbeat of concern that China and its dominant companies will eat America's economic lunch, so to speak. Of course, this isn't the first time in our history that there ...

10 Loka 202547min

Why the Price of Money Surged in the Last Six Years

Why the Price of Money Surged in the Last Six Years

What changed between 2019 and 2025? Why are interest rates so much higher? Why does it seem virtually unfathomable that the Fed will return to ZIRP anytime soon? Why do investors expect this rate cut ...

9 Loka 202542min

James van Geelen on the Next Phase of the AI Buildout

James van Geelen on the Next Phase of the AI Buildout

Money has been flowing into the AI space, with billions pouring into GPU clusters, data centers, gas turbines, and the infrastructure needed to train and deploy bigger and bigger models. So what comes...

6 Loka 202538min

Lots More with Joe Abate on the Fed's New Target and the Rising Price of Money

Lots More with Joe Abate on the Fed's New Target and the Rising Price of Money

We're used to talking about the Federal Reserve changing "benchmark interest rates." But the mechanics of how the central bank actually tightens or loosens policy are a lot more nuanced. For years now...

3 Loka 202527min

Terry Duffy on the CME's Big Push into Retail Trading

Terry Duffy on the CME's Big Push into Retail Trading

CME Group is one of the oldest exchanges around, tracing it's history all the way back to the late 1800s, when it specialized in agricultural commodities. It's best known for things like futures and i...

2 Loka 202557min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
mimmit-sijoittaa
rss-rahapodi
psykopodiaa-podcast
rss-rahamania
rss-lahtijat
ostan-asuntoja-podcast
hyva-paha-johtaminen
rss-seuraava-potilas
rss-sami-miettinen-neuvottelija
rss-startup-ministerio
rahapuhetta
lakicast
rss-porssipuhetta
rss-bisnesta-bebeja
rss-sisalto-kuntoon
rss-set-for-life-sijoita-ja-vaurastu
rss-rahataito-podcast
rss-paasipodi
rss-viisas-raha-podi