tag:blogger.com,1999:blog-2277215496195926573.post3189943085874488100..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: OMG: Spanish central bank economist says there’s a “huge fallacy” in MMT.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2277215496195926573.post-87488682590285506872017-03-25T11:00:31.273-07:002017-03-25T11:00:31.273-07:00In fact Randall Wray's book uses three sectors...In fact Randall Wray's book uses three sectors, government, private sector, and foreign sector. And Bill Mitchell's blogs do, too.<br /><br />Of course it doesn't matter how you divide up the non-government sector, it still is true by simple arithmetic that the government deficit (surplus) is exactly offset by the sum the other sectors' surpluses (deficit). <br /><br />Some sectors may run deficits while others run surpluses, but if a government sovereign in it's own currency runs a deficit then the arithmetical sum of all the other sectors will be in surplus to the exact same amount as the government's deficit.Ed Seedhousehttps://www.blogger.com/profile/05193005256681783842noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-47966760311564336952017-03-25T09:51:22.976-07:002017-03-25T09:51:22.976-07:00My hunch is there is something to be said for havi...My hunch is there is something to be said for having state liabilities mainly in the form of debt which pays a very low rate of interest, like 0.5% rather than in the form of cash. A merit of that is that if the liabilities are in the form of cash, it's just possible the private sector goes mad and decides to spend it all at once which would result in hyper-inflation, whereas it is more difficult (but not impossible) to spend debt.<br /><br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-84740458663577331582017-03-25T05:48:01.651-07:002017-03-25T05:48:01.651-07:00Ok, so I am an investor in UK bonds.The UK decides...Ok, so I am an investor in UK bonds.The UK decides to QE all national debt.What can I do?I could sell and take a hit as everyone else is likely doing the same,or I could stick with it since there the possibilty that the currency may well not tank and it may even strengthen,so I might even be better off.I may as well stick with it for the long term on the chance I will make a return because the option of panic selling would be sure fire way for to lose money.<br />From the UK point of view we need not pay anymore interest on national debt,once current debts are paid off.What's not to like?...unless you are a seller of bonds or like to buy bonds, either way If you are in that position I don't really have a great worry about your state of finances.Of course some national debt may be of use but generally I think mostly it is not.Maybe we should only sell national debt to nationals?<br />Incredible this man thinks private/commercially issed debt is not accepted as national currency,.....we have ignoramuses working for central banks, no wonder we are in the mess we are.vincehttps://www.blogger.com/profile/05690045138539663594noreply@blogger.com