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Harley Bassman: This Combo Will End In Tears, But Success Is Likely In The Medium-Term
[Editor’s note: The following is the latest commentary by Harley Bassman. If you’re not familiar with Bassman, he created the MOVE — more here.]
“With a Mighty Hand and an Outstretched Arm”
by Harley Bassman
Let’s be perfectly clear, I am not about to violate the first and third Commandments by implying the Federal Reserve (FED) is divine; that said, one must wonder if the common parlance of “the almighty US Dollar”, which is in conflict with the second Commandment, will direc
These frogs are boiled.
-Satan
Thanking H….for printing this post…………says it all…(cause I agree)….nite !
Anyone following his options trade? I definitely agree with him that bonds really suck in this environment. I guess just hold your nose and buy stocks?
With all the FED money printing, second COVID wave coming, and increased taxes coming in 2021 you would think at some point putting money in a world minus US would be a better yield….
At the end of the day… its a game of money. It is an ever-evolving Game of money supply & money demand; a Game where a few fundamental rules have not changed since year 0 of finance. Fiat Inflation is one of those rules.
I disagree. But that doesn’t diminish my respect for Harley’s career and work. Personally, I think Stephanie Kelton is correct about pretty much everything.
Much wisdom in what Harley sees. He concedes, begrudgingly that MMT is here. He admits that this should work in the “Medium term”. So sophisticated of him to acquiesce for an indeterminate time. MMT will be challenged by inflation. That day will certainly come. At that time the prescription of raising interest rates and raising taxes and other fiscal adjustments can be done but must be sooner rather than later. This will be most importantly done with an eye to managing the flow of labor between govt and private. It can work but will it. The fact is that capital must develop a respect for labor and help fund full employment during good times and lulls. We have only been washing one hand, time to join hands.
MMT is Wealth of the Nation economics. What we have come to is Wealth of the Greedy Individual crony capitalism.