The nitty-gritty of Economics
Not a Can of Worms - Just Fun!
Let’s get down to some iconoclastic nitty-gritty of economics for 2025:
inflation is currently not sticky, it’s on a bumpy path,
austerity (a profound social failure) is a toxic idea,
when balanced-budget approach is imposed, investment gets hit first,
the “debt-brake” (a private vampire of fiscal austerity) is a doomsday machine,
the world has no (net) debt – Note: not every debt is bad and for every liability there is an asset,
Germany’s neo-mercantilist economic model is a classic spin by hardcore neoliberal carpetbaggers,
savings are not necessary prior to investment – every penny saved is someone else’s liability, savings do not fund,
banks create money as they make loans,
QE-policy isn’t money printing, it is an asset swap by central bank reserves for Govt bonds,
“sellers’ inflation” can cause you election through no fault of you,
“Shareholder-Capitalism” is an ideology that has no basis in history, law and logic,
labor market does not work like the potato market – unlike people, potatoes do not consume less when their price plummets,
mandatory increases of minimum wages don’t depress job growth,
there is no way to disentangle the productivity of one worker from that of other in modern workplaces,
it is not “Big Government” that is to be feared, but corporate consolidation that eliminates competition and suppresses wages,
money is endogenous and comes with a liability (debt) – the broad money is created by the banking system,
public-sector spending and taxation are overwhelmingly about politics and only subordinately about economics,
budget deficit is a result, not an end in itself,
“Bond-Vigilantes” is a myth – Government is just like a household is a false analogy – Uncle Sam doesn’t borrow USD, he creates them by providing Fed reserves when he spends,
migration can’t be “solved” because it is a timeless and constantly fluctuating phenomenon,
Bitcoin and crypto tokens are neither money nor assets. The story-telling is about privatizing money, a decentralized tech-utopia to break free of the “tyranny” of the fiat money,
“Data-Dependency” narrative is ECB’s arm-candy.
