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So you are a MMT supporter?
??? did't mention or allude to MMT????????
So you are a MMT supporter?
??? did't mention or allude to MMT????????
Venezuela inflation soars to 4,000% in 'death spiral' - Nov. 22, 2017
The article makes it sound like inflation is the issue, stating that people have to check the value of their money before heading to the grocery store to see if they have enough to purchase anything...
...then it says "if there is even anything on the shelves to buy".
Seems to me that lack of production is their real issue, inflation doesn't even matter if there is nothing to buy.
PUNTO FIJO, Venezuela — A general with no energy experience has been installed as the head of the state oil company. Arrests, firings and desperate emigration have gutted top talent. Oil facilities are crumbling, while production is plummeting.
As the rest of the oil-producing world recovers on the back of stronger energy prices, Venezuela is getting worse, the result of dysfunctional management, rampant corruption and the country’s crippling economic crisis. The deepening troubles at the state oil company, the country’s economic mainstay, threaten to further destabilize a nation and government facing a dire recession, soaring inflation and unbridled crime, as well as food and medicine shortages.
PUNTO FIJO, Venezuela — A general with no energy experience has been installed as the head of the state oil company.
Under a gold standard your supply of money is based on your supply of gold. A federal reserve has very little power over the money supply unless it decides to completely change it exchange rate in relation to gold. Any changes to the exchange rate cause lots of issues.mostly wrong, under the rules of the gold standard at the time the Fed was supposed to expand the money supply but failed to do so for a variety of personal reasons at the NY Fed mostly based around a lack of total confidence in the value of doing so. Today there is no such lack of confidence.
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The Fed corrected itself because FDR suspended the gold standard in 1933 and the FED and US government had more control over it's money supply. Not nearly to the point that it does now...but it had that power.The Fed did slowly correct itself but by then you had 2 uber liberal presidents enacting socialist legislation that in effect caused a second depression to last 16 years and cause a world war that killed 60 million. Without the socialist legislation the Depression and World War 2 would never have happened
Sounds to me that Trump must be president of Venezuela also. He's appointed all sorts of people who have no experience in the field that they were appointed to be in charge of.
Under a gold standard your supply of money is based on your supply of gold. A federal reserve has very little power over the money supply unless it decides to completely change it exchange rate in relation to gold. Any changes to the exchange rate cause lots of issues.
I'm not sure what gold standard rules supposedly would push to the Fed to expand the money supply. One of the few ways to do that other than a straight devaluation of the dollar to gold exchange rate would be to RAISE interest rates in order to gain international investors and thereby gold from other countries. Raising the interest rates would of course be freaking disastrous as demand was already rock bottom low.
The Fed corrected itself because FDR suspended the gold standard in 1933 and the FED and US government had more control over it's money supply. Not nearly to the point that it does now...but it had that power.
The rest of your stuff is just babble and highly uninformed.
The idea that a shrinking money supply can cause a contraction in the economy is very well supported by MMTers. And I have known quite a few far righties who totally reject that concept, they believe that if the money supply falls, it would be good for the economy because consumers would be able to purchase more). Of course you are correct, and they are wrong.
Ideally, we need a money supply that is expanding at about the rate that the GDP is expanding, or perhaps expanding just a slighter bit more (to push the economy and create jobs).
Of course this whole gold standard thing was pretty much pointless because the government has no use for gold, and money doesn't have to be "backed" by gold to have value. We have proven this over the course of the almost 50 years since we went off of the gold standard.
Venezuela inflation soars to 4,000% in 'death spiral' - Nov. 22, 2017
The article makes it sound like inflation is the issue, stating that people have to check the value of their money before heading to the grocery store to see if they have enough to purchase anything...
...then it says "if there is even anything on the shelves to buy".
Seems to me that lack of production is their real issue, inflation doesn't even matter if there is nothing to buy.
Inflation isn't the cause of the country's problems but it is making them worse
"Is Venezuela's economic problem due to inflation, or is it due to it not being productive?"
Venezuela inflation soars to 4,000% in 'death spiral' - Nov. 22, 2017
The article makes it sound like inflation is the issue, stating that people have to check the value of their money before heading to the grocery store to see if they have enough to purchase anything...
...then it says "if there is even anything on the shelves to buy".
Seems to me that lack of production is their real issue, inflation doesn't even matter if there is nothing to buy.
Venezuela's economic problems are due to governmental fraud and mismanagement..