>

Sorry raki is too expensive now, we will stick to beer
“There are four kinds of countries: Developed countries, underdeveloped countries, Japan, and Argentina.” -Economist Simon Kuznets >

Why is Japan a standout? Is it a quote from the 80s? >

Huge amount of debt, low growth, low inflation. Yet things seem to work out. >

Because that debt is owned to their own citizens and not foreign countries. This is very common in places where there are lot of natural disasters and you need to rebuild. >

It's not much about who's holding the debt (about 20% of US debt is foreign held, compared to 15% of Japan's debt) but on what currency is it issued. Japan, like the US, has almost all of its debt issued on its own currency. That's not common, and that's why they can get away with it. >

This is the MMT view right? There are other, more well established schools of thought if I understand correctly. >

No, not at all. MMT views are completely trash. This view just takes US debt and currency realities for what they're worth. It's not an advocacy for infinite debt (that's not going to work), but it does explain why big deficits in the US in recent history are not that important. >

I think you’re mischaracterizing what MMT implies. The general idea is that with a sovereign currency, a country can spend (with debt) up to what its labor force at full employment & resources allow for. As the country approaches that limit, there is inflationary pressure. The opposite mechanism here to taking out debt being taxation, which reduces the money supply and relieves inflationary pressure. So in other words, MMT does not claim that you can have “infinite debt”. 
Although, I’m an engineer not an economist, so take this with a grain of salt lol >

I think the problem is less what the theory says (in theory) and what advocates use it for in practice.
MMT says basically, spend until you get inflation.... and that's your cap or "fiscal cliff."  But no one really agrees upon what that is and so MMT advocates will keep saying SPEND SPEND SPEND and there never really seems to be a concern for what is being spent on.
And then you get inflationary pressures and now instead of proclaiming that we have to cut government spending to reduce inflation they start yelling NO WE HAVE TO SPEND MORE.  Why?  Well people are suffering and we need money to jump start the economy!
Oh.
Like we're in hyperinflation right now.  Hypothetically the swarms of MMT enthusiasts from 2 years ago should be screaming at the top of their lungs to make cuts.  But all the politicians who claimed MMT as a basis for their spending just continue to advocate for more spending. >


MMT advocates will keep saying SPEND SPEND SPEND and there never really seems to be a concern for what is being spent on.
And then you get inflationary pressures

Inflation didn't happen after the great round of QE that happened post 2008 crash. It seems like the causes of inflation are a bit more complex than simply government spending. >

Why is it this so common in Argentina and not in neighboring countries? >

i call the deseas Socialism Argentinians call it “kirchnerismo” or “Peronismo” with that been say my own father guarantees me that Socialism is actually “good” its just that 50 years of Peronismo n 20 years of kirchnerismo where too corrupted,… i am telling you one thing the cure is no where to been seen in the next decades >

At this point I think the government just has a problem. Socialism or Capitalism almost every government in the last 40 years has had issues with controlling inflation. >

one thing is inflation another is almost 40 decades of inflation, comparing Socialism to Capitalism is not smart, since 1 cares about the Economy of the country the other about it “people” and just so happens that Argentina care so much about the people that 50% of the population leaves from the state,.. pls don’t speak without knowing what’s Actually going on, if anything i would compare Socialism with Communism >


if anything i would compare Socialism with Communism 

Galaxy brain analysis >

if you guys are happy and enjoy paying the taxes of those who doesn’t work what so ever, then dont came out crying and whining like bitching when the economy is shit. And yes i stand on the ground Socialism is just a softer Communism, and by softer i mean that countries that tends to be Socialist doesnt have any militarypower nor need it, instead they brainwash people, and instead of killing them, they just bury them into taxes that are plain out stupid so people doesn’t have a chance to live with out the support of the government. open your eyes, and use the “Galaxy Brain” for something else than making an stupid “came back” >

You should write a political sciences paper man this shit genius. Don't think I've ever seen a sharper political mind since idk Dick Cheney or something. >

i came here with a train of thought but didn’t realize i end up stepping with shit in my way, go and be cringe elsewhere >

Argentina never stopped being Argentina. Always currency collapse. >

Can't think of something more Argentinian than inflation >

Eating steak while an old Argentinian man talks about how great Argentina is despite not having been back in decades? >

I see you've sat at my family dinner table >

At 100%, Messi will level up. >

I was there when a buddy of mine got me the Messi dollar when the officially rate was like 6-1. Lived like a king for 2 weeks >

Yeah, it’s Argentina, that happens a lot there. >

Their voters are completely stupid and choose this over and over again >

Argentina has had massive inflation for decades 
I'm no expert at all... but it's clear that the economic direction they've taken is not good . Can't they change it completely? >

Too much goverment employees + third world country economy = inflation. To finance a big goverment Argentina has to print money which they don't have. Inflation is a taxation of the poor, since they're the last ones to spend the money on goods and by that time the prices have already increased. To fix the problem, they have to decrease the goverment size and freeze the money in the banks. This will crash the consumer economy and stabilize the currency while bringing massive unimployment. Brazil did exacly that in the 90s and since then inflation has never skyrocketed again. >

Argentines don’t keep their money in banks, they hoard it physically. >


they hoard it physically.

I go even further and say: they hoard DOLLARS, not their currency.
Right now, Argentinean economy is a de facto dollarized nation. Anything that cost more than grocery in Argentina, the purchase is done in dollars: cars, properties, large home appliances, investments... everything. And all physically, pure craziness.
Argentina is a very hard conundrum to solve: 40% of their people are right now living in poverty. Still, their very large public sector and their lobby groups sabotage any attempt to really solve their issues (excessively large public sector + public retirement system full of privileges), and their own population has a very wrong idea of what a government should do (they believe that their government must directly provide jobs and sustain them instead to create conditions for people to create their own opportunities). This creates an environment that populists of all kinds since Perón are preying into for a century.
Argentina is not a economical problem, is a political-social problem. No economic theory can fix that. >

There's no easy solution for Argentina. Even if they did the necessary reforms, their country would still suffer a great recession. I would just recommend to anyone interested in this topic to search for "Plano Real" which was the transition from a very poor brazilian currency to a dollar equivalent one. >

Put Messi on a new large domination bill and watch the Argentinian Peso demand go up. >

Call it the Argentinian Pessi >

Portugal should also put Penaldo face in their own currency. >

so euro coins >

Didn't matter, they won the World Cup >

Tom Brady prefers deflated balls, while Messi prefers his inflated. >

That's so high... I do not think I can afford to even live there. Anyway, why has inflation peaked so much? Is it because of the public debt or are there corrupted things going on? >

People with fixed salaries will be the ones who will suffer so bad from this... >

I feel bad for the Argentinians... you all deserve a better government. >

Turkey be like: hold my beer >

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