What's I've been on the edge of my seat about this week is Japan finally (finally! what all those people you mentioned were warning about) getting stuck between unaffordable government debt levels and currency devaluation. They should raise interest rates, but that would explode government payments on interest. Been following @Robin J Brooks who is doing a great job covering it.
Thanks for this writeup. I'm not an economist, so I don't have that much familiarity with MMT. I agree that you can't just set interest rates by fiat -- you still need buyers at the end of the day. I suppose the MMT theory amounts to the idea that having the government be a straw buyer could allow you to hack demand.
I know debt to GDP ratio is a bad look (and optics are a big part of this) but I suspect that at nitty-gritty fundamentals, the question at the end of the day for American holdings (including T-bills) is: what is safer?
The ultrarich (who may be growing in number) need to park their assets somewhere. I can see a growing case for Yuan. It's harder to make the case for the Euro.
To me, the question is, ten years from now, if you want to buy a bag of rice, a gallon of gas, or a bar of gold, which currency do you want in your bank account at that time? Find the country in the world where you can buy those things (or whatever you're looking for), and that's where you'll park your dough
What's I've been on the edge of my seat about this week is Japan finally (finally! what all those people you mentioned were warning about) getting stuck between unaffordable government debt levels and currency devaluation. They should raise interest rates, but that would explode government payments on interest. Been following @Robin J Brooks who is doing a great job covering it.
Thanks very much! Appreciate the kind words.
Thanks for this writeup. I'm not an economist, so I don't have that much familiarity with MMT. I agree that you can't just set interest rates by fiat -- you still need buyers at the end of the day. I suppose the MMT theory amounts to the idea that having the government be a straw buyer could allow you to hack demand.
I know debt to GDP ratio is a bad look (and optics are a big part of this) but I suspect that at nitty-gritty fundamentals, the question at the end of the day for American holdings (including T-bills) is: what is safer?
The ultrarich (who may be growing in number) need to park their assets somewhere. I can see a growing case for Yuan. It's harder to make the case for the Euro.
To me, the question is, ten years from now, if you want to buy a bag of rice, a gallon of gas, or a bar of gold, which currency do you want in your bank account at that time? Find the country in the world where you can buy those things (or whatever you're looking for), and that's where you'll park your dough