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Harry Sacks

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Everything posted by Harry Sacks

  1. And here's how it works in practice - "In France, and with all sums expressed in euros at constant 2017 values, GDP grew by 23% between 2000 and 2017. But this growth, whilst adding €433bn to GDP, was accompanied by a €3.07tn increase in aggregate debt. This means that each €1 of reported growth in the French economy has come at a cost of more than €7 in net new debt. Put another way, whilst French GDP is growing at between 1.5% and 2.0%, annual borrowing is running at about 9.5% of GDP. " https://surplusenergyeconomics.wordpress.com/2018/12/07/140-are-yellow-jackets-the-new-fashion/?fbclid=IwAR0wgAYjIK3y44qOtO7ZcVVQHHVxmeMC9uguR-IfQYd8zn7U7z8dFmOXmIk
  2. Yep. It's like economists take what it is that gives currency value for granted - skilled labour, resources and the products when the two are combined. Reading the MMT you'd think the end game was no one lifting a finger, in reality it would be Zimbabwe. Looking at the Euro zone, there's Germany making everything and the rest are pawning whatever they have to by it, with window guidance from the ECB.
  3. This happened to a dear friend. IO mortgage to contend with when kids went off to Uni. It all worked out in the end but involved some serious down sizing and compromise.
  4. They are saying that countries can run large deficits indefinitely. That's a great vote winner, right? There's little about the role of commercial bank assets, MBS, etc or the role of foreign holders of gov paper.
  5. Well, there's ****** all chance of us trying to reform it from the outside.
  6. Well, yeah. This is the paper the article links to http://www.levyinstitute.org/pubs/wp244.pdf Loads missing in my opinion
  7. Interesting read, whatever you make of it.. https://www.vice.com/en_uk/article/a34n54/modern-monetary-theory-explained Interview with Mosler. Worth a listen. https://soundcloud.com/undergroundnet/warren-mosler-interview-dialogos-2015-11-25
  8. Sorry I meant borrowing cost, the interest rate on 1yr is lower than the US.
  9. Do you not think it significant that China's short term borrowing is now lower than the US, and that's with them running a budget deficit?
  10. One of the most common Remain arguments is the prospect of falling asset values. The irony is completely lost on them. The other one is blaming "Tory austerity". I wonder how keen they'd be to swap Osborne for Schäuble under the same circumstances? To be honest I would prefer to remain. However, I truly believe the Euro is toast and will take the EU down with it.
  11. https://surplusenergyeconomics.wordpress.com/2018/12/07/140-are-yellow-jackets-the-new-fashion/?fbclid=IwAR0Pi3ypdcq_PGv734rzFGjGle1YTxSfWGcRl8mAkOLdo9k7JQljaG2x1Vw In France, and with all sums expressed in euros at constant 2017 values, GDP grew by 23% between 2000 and 2017. But this growth, whilst adding €433bn to GDP, was accompanied by a €3.07tn increase in aggregate debt. This means that each €1 of reported growth in the French economy has come at a cost of more than €7 in net new debt. Put another way, whilst French GDP is growing at between 1.5% and 2.0%, annual borrowing is running at about 9.5% of GDP.
  12. Confidence. Banks buy and sell securities. They buy things like your mortgage, and sell the financial instruments they derive from them when they refinance, either from the commercial repo market or the central bank. The primary driver for our current situation was not real estate, it was a shortage of AAA rated securities for emerging markets to store their surpluses, around the turn of this century. Securities based on real estate happened to be the next best thing to gov debt.
  13. I've been here since the old open forum. I can remember discovering the wonders of securitisation,(2006 I think) from someone on here. From that moment it was obvious where the problems would start, the real question was when.
  14. The flip side of that debt is someone's saving/asset. They don't see it like you do.
  15. You fill the gap with debt. That's the only game in town.
  16. If he doesn't know this stuff he really shouldn't be there without someone more experienced to guide him. Yes. I've seen it happen many times to fresh faces at car auctions.
  17. It's called "taking bids off the wall". Someone enters a Lot with an unrealistic reserve, the auctioneer can keep dropping until the first bidder "starts in", he can then continue to conjure up new bids in rapid succession in an attempt to pick up a real bid that will see over the reserve. After you've been to a few auctions it becomes very obvious.
  18. Follow Steve Keen on Twitter. I think he's got a dog in the fight.
  19. They might have their hand forced if auctions cover falls, depending on how this current shit storm plays out. The Euro could collapse anytime, too.
  20. These policies are still playing out. We have no idea what the outcome will be. The bailout is ongoing. If the market shits itself again, the liabilities will be too big to bail this time. Look at the consequences of the first bailout - Trump, Brexit, rise of populism and Europe on fire.
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