Soome kärbib

Finland embarks on ‘painful’ austerity blitz

Former PM takes finance minister job as Nordic country prepares for five years of belt-tightening

Recession-hit Finland is set for five years of painful austerity as the Nordic country finalised the details of its right-leaning coalition government.

Following nearly a month of political horse-trading, prime minister elect Juha Sipilä announced a three-party coalition made up of his liberal Central party, the populist True Finns and the conservative National Coalition party.

In a surprise to many observers, former prime minister Alex Stubb was appointed as the country’s finance minister.

Mr Stubb, who was ousted from office in the country’s April elections, will have now occupied the prime minister, foreign minister, and finance minister roles.

The touted favourite for the finance ministry job, Timo Soini of the eurosceptic True Finns, was appointed as foreign minister.

Finland has been the worst performing economy in the eurozone outside of the southern European states, having endured three years of recession…..

Et kolm aastat retsessiooni Soomes ja kärpeid ning jätkatakse samaga, aga veelgi intensiivsemalt.

Siin on üks huvitav tekst:

As I said yesterday, I place the interest of my country and its welfare above all partisanship.  I do not want to see the Government’s credit impaired or broken down for any partisan advantage, but everyone knows if we continue the present financial program of borrowing billions upon billions of dollars, with an unbalanced Budget, piling up debt upon debt, sooner or later the day of reckoning will come. None of us are prophets.  We cannot predict when that time will be.  All we know is that is we continue on this road, with no financial policy and an unbalanced Budget we are going forward on the road to bankruptcy, repudiation, and financial chaos.

Seda ütles Hamilton Fish III USA Esindajatekojas aastal 1937. Mitte midagi ei ole muutunud.    Vahepeal oli veel 2. Maailmasõda ja valitsuse kulutused kasvasid tohutult. Eks see oli vast anomaalia ja nüüd on turud targemaks saanud, nad enam ei taha rahastada suuri defitsiite ning USA võib  Kreeka olukorda sattuda.    Jaapanil on erasektoril kõvasti sääste, kui need otsa saavad, siis teevad targad rahastajad Jaapanile Kreekat  :)

The burden of national debt

One of the most effective ways of clearing up this most serious of all semantic confusions is to point out that private debt differs from national debt in being external. It is owed by one person to others. That is what makes it burdensome. Because it is interpersonal the proper analogy is not to national debt but to international debt…. But this does not hold for national debt which is owed by the nation to citizens of the same nation. There is no external creditor. We owe it to ourselves.

A variant of the false analogy is the declaration that national debt puts an unfair burden on our children, who are thereby made to pay for our extravagances. Very few economists need to be reminded that if our children or grandchildren repay some of the national debt these payments will be made to our children or grandchildren and to nobody else. Taking them altogether they will no more be impoverished by making the repayments than they will be enriched by receiving them.

Abba Lerner The Burden of the National Debt (1948)

U.S. Senate economist explains why deficits aren’t always evil: Walkom

U.S. Senate economist explains why deficits aren’t always evil: Walkom

Stephanie Kelton is part of a new generation of economists trying to figure out how things work in our grim, new world.

Most Canadian politicians agree on deficits.

Most say that at times of crisis governments may have to spend more than they take in.

But common political wisdom goes on to say that once this crisis is passed, governments should move as quickly as possible to get their fiscal houses in order.

That’s what Prime Minister Stephen Harper, a Conservative, says. It’s also what Ontario Premier Kathleen Wynne, a Liberal, says.

Tom Mulcair’s federal New Democrats are not much different.

Parties may disagree on timing. But there is a consensus that, in general, government deficits are to be avoided.

Which is what makes Stephanie Kelton so interesting. She is chief economist for the Democratic minority on the U.S. Senate budget committee. That’s an influential post.

But she’s also a prolific advocate for a newish school of economic thought — sometimes called modern monetary theory — that is remarkably blasé about debt and deficit…..

Bellofiore, Mosler, Wray on The Recessionary Architecture of the EMU

The Recessionary Architecture of the EMU
Chairman: Jack Birner – University of Trento
The three speakers in Trento are lecturers at the Master in Economics and Global Markets – University of Bergamo, Italy. If you want rethinking economics, you can’t miss EGM Master! More informations at the webpage

Randall Wray – University of Missouri-Kansas City and visiting professor of Macroeconomics – Master in Economics and Global Markets – University of Bergamo, Italy
“Modern Monetary Theory and Euroland: What is Wrong with the Euro?”
Warren Mosler- visiting professor at University of Bergamo (Master in Economics and Global Markets) and at University of Trento
“Policy Options for Italy and the Euro Zone”
Riccardo Bellofiore – professor of Macroeconomics – in Economics and Global Markets – University of Bergamo, Italy
“Exiting the Euro: the Wrong Answer to the Wrong Question”

Department of Sociology and Social Research, Via Verdi – Trento – May 16th, 5 p.m.

Draghi eurotsooni majandusest

ECB head Draghi: Growth is ‘too low everywhere’ in Europe

SINTRA, Portugal (AP) – European Central Bank head Mario Draghi said that “growth is too low everywhere” in the 19-country eurozone despite a modest recovery.

Draghi made the blunt remark as he opened a conference on the unemployment problem plaguing several of the European Union member countries that share the euro currency…..

…..Draghi’s growth call was echoed by a top U.S. Federal Reserve official at the conference. Fed Vice Chair Stanley Fischer said the euro’s crisis has led to new institutions such as EU-level banking supervision and procedures to wind up bad banks to spare taxpayers the costs of bailouts.

Fischer said the euro appeared to have weathered the current crisis but warned that “in the longer run,” the monetary union “will not survive unless it also brings prosperity to its members.”…

Asi on euros ja kriis on poliitiline, rahandussüsteemis pole mitte midagi olemuslikult valesti. Eurosüsteemis on just see valesti, et nad ei jõua omavahel poliitiliselt kokkuleppele. Institutsionaalselt ei sobi see ehk kokku Euroopa kultuuriruumiga, sest meil on siin rahvusriigid, aga mina näen ikkagi probleemi ainult poliitikas. Majandusteadlased muidugi levitavad neoliberaalset propagandat, seda tehti kunagi ka Jaapani kohta: tuleb võlakirjamull, rahatrükk viib kontrollimatu inflatsioonini jne.  Need hirmud ei realiseerunud ja selle asemel, et vigu enda teooriates tunnistada, nad nimetavad nüüd Jaapanit lihtsalt anomaaliaks. Võlg SKP-sse 250%, reservide pumpamine pidi inflatsiooni tooma, aga järgnes deflatsioon.

But he said that the union faced further challenges, such as the lack of a common budget. Leaving budget decisions to individual governments risks overspending by some. It also deprives the union of a common fiscal pot to even out recessions in individual countries.

“The decision to use the single currency to drive the European project forward was a risky one, and at some stage or probably in several stages, it will be necessary to put the missing fiscal framework into place,” Fischer said.

Sellist võimalust on siin blogis arutatud enne ja järeldusele jõutud, et tõenäosus selle töötamiseks Euroopas on üliväike. Pigem ei olda Euroopa riikides nõus rahvuslikust demokraatiast loobuma. Aga tundub, et keskpankurid ja mitmed rahandusministrid on minuga selles küsimuses ühte meelt.

Poolal uus president

Andrzej Duda valiti Poola presidendiks ja see mees on euroskeptik. See peaks  Brüsselisse tugeva signaali saatma, et mitte ainult euroga ei kisu kiiva, vaid EL kipub allavett minema varem või hiljem. Siia tuleks lisada veel Podemose edukas esinemine kohalikel valimistel (küll mitte euroskeptikud, kuid senise EL-i fiskaalpoliitikaga nad rahul pole).  Poolal on hästi läinud majanduskriisis võrreldes teistega (arva kolm korda, miks), sellegipoolest on Poolas euroskeptilised meeleolud.

Neil Wilson võttis mul sõnad suust

The desire of the Left elite, of which Varoufakis is one, is for a Federal Europe. That is the end game and they sacrifice all on that premise. Unfortunately it is a pipe dream that will not happen. Firstly the people of Europe don’t want it and secondly the corporations of Europe won’t allow it to happen. What you will get instead is a new Holy Roman Empire – an imperial project run by corporations for corporations with the ordinary people taking the place of the slave class that keeps it going. The right wing powers that be must kill themselves laughing as the Fabian elite do all the dirty work for them.

Euroopa probleem on vasakpoolses eliidis, kes 500 euroseid lõunaid naudivad ja föderalismist unistavad. Sellistes inimestes nagu Yanis Varoufakis, Marju Lauristin jne.  Nad neelavad massilise inimeste väljarände, kõrge tööpuuduse jne alla oma föderaalse unistuse nimel . See nende unistus on muidugi pipe dream, aga nad on vasakpoolsed ideoloogid, kellele reaalsed probleemid korda ei lähegi. Nemad räägivad euroopalikest väärtustest süsteemis, kus väikeriigi rahvastik väheneb selle euroopaliku majanduspoliitika tulemusel 8 aastaga 10%.  See on mõttetu kamp, kes sind poliitkorrektsete väljenditega üle külvab, sallimatuse teemal tolmu üles keerutab jne (viimast nad ise genereerivadki). See EL-i ja Brüsseli demokraatia farss hakkab üha enam sarnanema NSVL-u ja Moskva Kongresside Paleega.

Europe faces second revolt as Portugal’s ascendant Socialists spurn austerity

By Ambrose Evans-Pritchard

Europe faces second revolt as Portugal’s ascendant Socialists spurn austerity

Europe faces the risk of a second revolt by Left-wing forces in the South after Portugal’s Socialist Party vowed to defy austerity demands from the country’s creditors and block any further sackings of public officials.

“We will carry out a reverse policy,” said Antonio Costa, the Socialist leader.

Mr Costa said a clear majority of his party wants to halt the “obsession with austerity”. Speaking to journalists in Lisbon as his country prepares for elections – expected in October – he insisted that Portugal must start rebuilding key parts of the public sector following the drastic cuts under the previous EU-IMF Troika regime.

The Socialists hold a narrow lead over the ruling conservative coalition in the opinion polls and may team up with far-Left parties, possibly even with the old Communist Party.

“There must be an alternative that allows us to turn the page on austerity, revive the economy, create jobs, and – while complying with euro area rules – restore hope to this county,” he said.

While the Socialist Party insists that it is a different animal from the radical Syriza movement in Greece, there is a striking similarity in some of the pre-electoral language and proposals. Syriza also pledged to stick to EMU rules, while at the same time campaigning for policies that were bound to provoke a head-on collision with creditors……


Miks kreeklased eurost loobuda ei taha

Küll on lollakad kreeklased, miks nad eurost ei loobu? Kreeklastel on oma puuslik, sellepärast ei loobu. Neil on minevik sõjaväe huntaga, inimesi tapeti, vangistati jne. Aga see ei pea ju enam korduma, ega eurost loobumine ei tähendaks ju seda? Teise silmas on lihtsam pindu näha kui oma silmas…..   Meil on analoogne puuslik seoses Venemaa ja NSVL-uga. Kui keegi hakkaks meil tõsiselt rääkima eurost loobumisest või EL-st välja astumisest, siis see meie puuslik võtaks kohe diskussiooni üle. Ma olen kreeklastega rääkinud sel teemal, see on just põhjus, miks euro ja EL sümboliseerib neile midagi lootustandvat ja head, sest see hunta jama ei või iial korduda.

Muidugi Syriza kaotab võimu varem või hiljem. Mingit lootust ei paku ka Podemos Hispaanias. Asi ei ole minu hinnangul Podemose puhul vähemasti selles, et nad marksistid on. Pigem just selles, et nad marksistid pole. Nad püüavad mitteradikaalid olla ja nö mõõdukad olla, et niiviisi kiiresti poliitilist profiiti lõigata. Tavaliselt satuvad selliste liikumiste ridadesse siis “tõelised mõõdukad” ja igasugu karjeristid ja nad on meelt mööda ignorantidele. Nii Syriza kui Podemos on populistlikud poliitilised liikumised. Kui sa tahad midagi nii radikaalset ühiskonnas muuta nagu eurost loobumine, siis populismiga sa edu ei saavuta, kuigi Podemos rääkis sellest minevikus, aga tänaseks on loobunud.

Kreekas ei ole see üldse avalikul arutusel, kuigi võimul olev partei saaks ju ikka sellise arutelu ühiskonnas tekitada. Neil on sellised inimesed parteis, et siis laguneks see ära. Seda sellepärast, et nad on populistid, kes tahtsid kiiresti võimule saada.  Kindlasti on neil selliseid inimesi, kes seda teha tahaksid, aga ei saa. Kumbki (Podemos ja Syriza) ei ole tegelikult radikaalsed, sildistagu meedia neid kuidas tahes. Eurost loobumine on Kreekas hirmujutt ja ruulivad baasinstinktid. Teisel pool ruulivad ka baasinstinktid ja propaganda. Kreeklased on laisad, neil on majanduses struktuursed probleemid, nad on EL-i head elu saanud maitsta ja ei taha nüüd freeloadimisest loobuda. Enne euroga loobumist oli Kreekas majanduskasv ja palju madalam tööpuudus. Kahtlen sügavalt neis struktuursetes probleemides, aga isegi kasinusvastased ütlevad: keegi ei vaidlegi vastu, et Kreeka peab struktuurseid reforme läbi viima. Mina küll vaidlen. Me oleme niivõrd neoliberaalses paradigmas, et kõige vasakumalt vasakumad on ka sellest propagandast läbi imbunud. Kreekale on vaja monetaarset suveräänsust ja täistööhõivet   :)

Ma suhtlesin ühe tuttava marksistiga ja see ütles, et euroopa probleem on natsionalism. Mina ütlesin, et muidugi on, me ei taha Euroopa Ühendriike ega ka Maailma Ühendriike. Kas marksistid on rahvusriikide vastu? Ma ei oska kõikide kohta öelda, aga üldiselt küll on. See oleks ju teoreetiliselt kindlasti demokraatia, kui käiksime maailmavalitsust valimas, aga kindlasti mitte selline, kuidas mina seda defineerin. Arvan, et vasakpoolsed liikumised või liberaalid võivad ju kuidagi põhjustada euro lagunemise,  ise nendest initsiatiivi võtjat ses küsimuses pole. Aga see peab juhtuma.

The unelected economic mandarins in Brussels

Eurozone Dystopia – Groupthink and Denial on a Grand Scale, chapter1

…..Historically, the body of theory that now represents neo-liberal
economics was first developed in the late 19th century as an antidote against the rising influence of Marxism, particularly in Europe. Marx’s message that profits were the reward for ownership of capital, not a reward for any contribution to production, resonated strongly with workers. The capacity of owners of capital to take the surplus labour of the workers for nothing was an inflammatory idea. Workers considered this essential feature of capitalism to be patently unfair and increasingly violent protests threatened the capacity of capital to maintain its elite position relative to the vast bulk of the population. Clearly a solution was needed. Industrialists recruited economists to develop theories that made capitalism look as though it was fair and rewarding productive input in proportion to its contribution to final output. Later this was refined as attacks on government policy aimed
at redistributing national income. Yet all the time, the interests of those who owned or served capital were being advanced at the expense of the less advantaged. Which leads us to the second reason why the Altman case is of interest to anyone seeking to understand why the EMU is in such a mess. The neo-liberal Groupthink, which dominates economic policy making in Europe, is a case of denial on a grand scale. It not only created economic structures and policy frameworks that spawned the crisis, but has also led to a policy response which has ensured the massive costs will endure for generations while the problems remain unsolved. It was obvious that the Eurozone was doomed from the start and now the same neo-liberal ideology is masquerading as the solution…..

…..The third option considered in detail is the so-called exit option. This is the preferred option, since it accords with the historical and cultural realities of Europe. It would be ideal if the Eurozone nations agreed to an orderly dismantling of the common currency and a restoration of the individual currency sovereignty for each nation. In lieu of such an unlikely turn of events, exit remains the superior option for an individual nation such as Greece or Italy, acting unilaterally. In fact, given the size of the Italian economy in relation to the overall Eurozone economy, Italy should demonstrate leadership by finalising a negotiated exit with Brussels that minimises the damage for all parties. This would provide the blueprint for other nations such as Greece, Spain, Portugal and others to follow……

Euroopalikud väärtused, Beware of the alien nation, Beware of the truth that they seek

Anatole Kaletsky käib minu arvates välja üsna realistliku stsenaariumi, et mis Kreekas juhtuda võib. Nad suruvad veel suurema kasinuse peale Kreekale karistuseks vastuhaku eest, kuni Syriza populaarsus kaob ja valitsus kukub. Mitte, et Syriza oleks kasinusele vastu hakanud kuidagi mõtestatult, aga kära nad ju teinud on küll. Viimane ongi vasakpoolsete strateegia  reeglina, ise nad majanduse juhtimisega hakkama ei saa ilma, et piim ja leib poest ei kaoks ja et pildil püsida, nad närivad parempoolsete kallal. Syriza teebki seda, mida ta kõige paremini oskab, Merkeli ja Saksamaa kallal närida ja vinguda, endast ohvreid kujutada, “me teeksime küll, aga meile tehakse liiga”. Ma arvan sarnaselt Kaletskyga, et Tsiprase ja Varoufakise strateegia kukub läbi, seda on Euroopas läbi nähtud. Arvan, et vastaspool sellele mängibki: kasinus on küll halb, aga õppetund sellest on see, et kui valid teise poole, siis saad veel hullema ja neil on minu meelest õigus. Arvan, et see võib täitsa vabalt realiseeruda. Tulemuseks on arvatavasti veelgi suurem inimeste teineteisele vastandumine Euroopa riikides, see protsess on isegi meil Eestis alanud.

Kui rääkida vasakpoolsusest Euroopas, siis siin ei ole tegemist inimestega nagu näiteks kommunistid NSVL-s. Nonde jutus ja tegemistes oli mingisugune loogika või vähemalt sa said aru neist mingil määral ning suutsid nendega midagi argumenteerida. Need inimesed on teisest puust, nende ajud on mürgitatud postmodernismiga, nad valavad su üle tühjade loosungitega euroopalikest väärtustest jne. Priit Hõbemägi on minu meelest tabavalt kirjutanud neist. Jah, võib olla teen vasakpoolsetele liiga, nende seas on ka paremliberaale.

Why Syriza Will Blink

…..This brinkmanship is no accident. Since coming to power in January, the Greek government, led by Prime Minister Alexis Tsipras’s Syriza party, has believed that the threat of default – and thus of a financial crisis that might break up the euro – provides negotiating leverage to offset Greece’s lack of economic and political power. Months later, Tsipras and his finance minister, Yanis Varoufakis, an academic expert in game theory, still seem committed to this view, despite the lack of any evidence to support it…..

…..For the EU authorities, by contrast, a Greek default would now be much less problematic than previously assumed. They no longer need to deter a default by threatening Greece with expulsion from the euro. Instead, the EU can now rely on the Greek government itself to punish its people by failing to pay wages and pensions and honor bank guarantees.

Tsipras and Varoufakis should have seen this coming, because the same thing happened two years ago, when Cyprus, in the throes of a banking crisis, attempted to defy the EU. The Cyprus experience suggests that, with the credibility of the government’s default threat in tatters, the EU is likely to force Greece to stay in the euro and put it through an American-style municipal bankruptcy, like that of Detroit.

The legal and political mechanisms for treating Greece like a municipal bankruptcy are clear. The European treaties state unequivocally that euro membership is irreversible unless a country decides to exit not just from the single currency but from the entire EU. That is also the political message that EU governments want to instill in their own citizens and financial investors.

If Greece defaults, the EU will be legally justified and politically motivated to insist that the euro remains its only legal tender. Even if the Greek government decides to pay wages and pensions by printing its own IOUs or “new drachmas,” the European Court of Justice will rule that all domestic debts and bank deposits must be repaid in euros. That, in turn, will force a default against Greek citizens, as well as foreign creditors, because the government will be unable to honor the euro value of insured deposits in Greek banks.

So a Greek default within the euro, far from allowing Syriza to honor its election promises, would inflict even greater austerity on Greek voters than they endured under the troika program. At that point, the government’s collapse would become inevitable. Instead of Greece exiting the eurozone, Syriza would exit the Greek government. As soon as Tsipras realizes that the rules of the game between Greece and Europe have changed, his capitulation will be just a matter of time.

Mosler eurost

The euro has been moving higher vs the dollar, as CB selling winds down as they reach the lower limits of their reserve targets along with fundamental support from a large and growing EU current account surplus that’s drained those euro sold by those CB’s and other sellers from global markets. This may have left the short sellers and others needing to recover euro allocations subject to a dramatic short squeeze for as long as the current account surplus continues. And this poses an extreme risk to the EU. Growth forecasts have been largely based on ‘weak euro’ and as it moves higher that growth never materializes, and instead the economy deteriorates/unemployment goes higher, etc. etc. and, making matters worse, the ECB is left ideologically bankrupt, having seen negative rates and QE do nothing more than exacerbate the deflation they were trying to reverse. All they can do is try more of the same, which will be a very depressing environment for those who have been suffering under the failed policies. All of which has the potential to accelerate the already growing support for the various anti euro forces.

Eurozone Dystopia – Groupthink and Denial on a Grand Scale – now published

Eurozone Dystopia – Groupthink and Denial on a Grand Scale – now published

Edward Elgar, announced last night (Oz time) that my new book – Eurozone Dystopia – Groupthink and Denial on a Grand Scale – is now published and available for sale. Here are some details. I am sorry to interrupt the Saturday Quiz deliberations.

Some relevant links to further information and availablity:

1. Edward Elgar Catalogue Page

2. You can read – Chapter 1 – for free.

3. You can purchase the book in – Hard Back format – at Edward Elgar’s On-line Shop.

4. You can buy the book in – eBook format – at Google’s Store.

The book is expensive as are all Edward Elgar publications. Their business model works through wide-spread library acquisition rather than consumer sales. I would obviously appreciate if you are in a position to recommend the book to your librarian that you do indeed do so.

Knowing that the title would be expensive, I negotiated a non-standard contract with Edward Elgar, with whom I enjoy a very productive and amicable relationship.

Instead of the paperback version coming out after two years, I negotiated the cheaper paperback will come out in 12 months.

Moreover, the eBook will be available immediately and will cost $US36.10, which is eminently more affordable.

That was the best I could do in a commercial world to make the book as accessible as possible in the shortest possible time.

There will be an official book launch in Europe in late August with details to be announced.

Front Cover


Further pictures of back cover and full dust cover available here – Eurozone Dystopia – Groupthink and Denial on a Grand Scale – Early peek.

That is enough for today!

(c) Copyright 2015 William Mitchell. All Rights Reserved.

Spread the word …

Kristjani vanaisa

Tere jälle. Mõtlesin, et kirjutan täna hoopis millestki muust, nimelt oma vanaisast. Alustaks sellise luuletusega:

Mets on kõrge, mets on kuri, metsas palju mehi suri. Sõja ajal pärast sõda, mõni mäletab veel seda.

Metsas palju mehi nälgis, palju verekoeri jälgis metsarüppe tallat teesid, leidmata ei jäänud keegi.

Palju mehi punkreist püüti, alistati, aeti küüti. Palju mehi vastu hakkas, palju suid jäi surmavakka.

Palju hunte haual ulus, palju kurbi päevi kulus, kuni laste meelest suri mälestus, et mets on kuri.

Kirjutanud on selle luuletuse Priidu Beier.  Mul on see luulekogu kadunud ja peast panin ta siia praegu, võib olla olid salmid teises järjestuses.

Mulle meenus üks seik seoses oma vanaisaga. Olin hästi noor ja elasin vanaisaga kahekesi maal tema majas. Mina töötasin linnas autojuhina, vanaisa oli pime. Andsin talle hommikul süüa ja vist lõunaks ka tegin talle mõne võileiva, õhtul tulin, siis ta sai korralikult süüa. Ega temaga suurt vaeva ei olnud, mööda nööri käis õue peldikusse jne. Ühel õhtul töölt tulles oli vanaisal kirves käes ja midagi mõistlikku ta öelda ei suutnud muud kui “prokuröri varas, prokuröri varas”.  Naabrinaise käest sain teada, mis juhtunud oli. Asi oli selles, et tol ajal hakati talusid tagasi andma, aga metsavennad olid bandiidid ja neile ei antud. Proküror tuli ühe vanaisa sõbra kohta küsima, et kas see mees ka metsas oli. Vanaisa korrutas “terve eesti rahvas oli metsas”. Prokurör siis uuesti, et hea küll, terve eesti rahvas oli metsas, aga kas see mees ka oli. Vanaisa vastu: terve eesti rahvas oli metsas. Prokurör ütles lõpuks, et vanamees on dementne ja lahkus. Aga vanamees ei olnud midagi dementne, ta ei tahtnud enda sõpra välja anda.  :)  Ja veel, see maja, kus me elasime, ei olnud too maja, mis vanaisal ära võeti, seal elasid nüüd punaparunid, et selline lugu.

Federal Reserve Bank of St Louis

Levita seda pilti, seda väidab Federal Reserve Bank of St. Louis, mitte MMT   Link sellele tekstile on siin, see on föderaalreservi panga leheküljelt:

Why Health Care Matters and the Current Debt Does Not

Järgmine kord, kui kuuled finantsneandertallasi rääkimas ujuvkuriga riigi võla jätkusuutmatusest, siis kehita õlgu ja küsi, et kas föderaalreservi pankurid eksivad selles küsimuses. Või jääb religioon peale faktidele?

Need vastikud manjaanamehed

Merkel Pressed to Give Up on Greece as Germans Urge Strong Euro

German Chancellor Angela Merkel is coming under growing pressure from within the ranks of her own party bloc to give up on Greece for the sake of the euro. Members of Merkel’s Christian Democratic bloc are openly challenging her stance of keeping Europe’s most-indebted country in the 19-nation currency region. Even some officials in the Finance Ministry are leaning toward the conclusion that the euro area would be better off without Greece, two people familiar with the matter said. “The euro would be strengthened if Greece left,” Alexander Radwan, a Merkel-affiliated lawmaker who voted for granting Greece a temporary extension of its bailout in February, said in an interview. “The other countries could then move closer together and apply the rules more strictly.”……

Jah, sellepärast ma räägin, et enne lootus panna konservatiividele.  Nende jutt ja loogika üle enda võimete elamisest on vale, aga selles vähemasti on mingisugune loogika, mis loodetavasti viib kuhugile, kas siis edasi või tagasi  :)  . Vastaspoolel puudub igasugune loogika: peame reformima, nii jätkata ei saa, euro on meie raha, me oleme nördinud jne.  Jutt on selline nagu oleks hullumajja sattunud, heatahtlik, pehme, iseloomutu jne.

…..Finance Minister Wolfgang Schaeuble, a prominent German advocate of European unity for decades, has given plenty of signs of exasperation with Greece since Tsipras and Finance Minister Yanis Varoufakis took office in January on an anti-austerity platform.

Schaeuble Outburst

He told an Austrian television interviewer on March 12 that he could envisage a Greek exit from 19-nation currency. On a panel in Berlin the next week, he accused Greek authorities of lying to voters by failing to tell Greeks that they “lived way above their means” for decades……

Muidugi nad unustavad, et neil ei ole oma eksporti enam kuhugile maha kallutada, kui need vastikud manjaanamehed üle enda võimete elamise ära lõpetavad.

Euro on loonud tingimused perfektseks tormiks, millega see lõpeb, ei tea. Minul on koht esimeses reas sellel vaatusel.

Härra Mauruse maja on sõnnikukast

Ex-Bank of England chief sees eurozone in deep trouble

…..No easy way out for the eurozone

How might the eurozone’s problems be resolved? King identified four options, none of them pleasant:

1. Continued high unemployment in periphery countries until wages and prices fall enough to regain eurozone-wide competitiveness. This might entail a further decline in average wages of 20 percent or so in those countries. Unfortunately, high unemployment entails weak domestic demand, which works against recovery.

Alexis Tsipras The debt crisis in Greece swept Tsipras and his Syriza party into power, but most eurozone nations – Greece’s creditors – oppose Athens’ anti-austerity agenda

This is the policy pathway currently being pursued, but: “There’s a limit to the economic pain that can be imposed before there’s a bad reaction,” King said, pointing toward increases in the support in nationalist parties of the left and right in many European countries.

2. A period of high inflation in Germany, accompanied by wage and price restraint in the eurozone periphery.

3. Large-volume fiscal transfers from North to South, indefinitely: the dreaded ‘transfer union’. This would necessarily entail imposition of “significant conditionality” on recipient countries, King said – i.e. it would entail their giving up economic policy sovereignty.

4. Breakup of the eurozone – messy, murky, difficult.

If Lord King’s analysis is correct, creating a common currency before creating an effective political and economic union was a major mistake – and so far, the eurozone has not done well at dealing with the consequences of that mistake.

Ja korrutage palju tahate enda progressiivset juttu, et kasinus peab lõppema. Nii kaua, kui te ei taha tõele näkku vaadata, et euro on valesti loodud monetaarliit, ei ole diskussioonil teiega mõtet.  Seiske loomade õiguste eest, homode õiguste eest, rääkige ökoloogiliselt puhtast majandusest, kõndige paljaste rindadega pool Eestit läbi, minge kuhugile üritusele kilpkonn või sisalik õla peal ja tundke end originaalse ning huvitavana . Ja peamine, žonglöörige suurte filosoofiliste ideedega vabadusest jne.

Kasinuse lõpetamise teostamiseks puudub teil raha, makse te ei suuda alandada nii, et mingit teist maksu kuskil ei tõsta, mis lõppkokkuvõttes on palju  tühja tõmblemist ja kära. Mind isiklikult jätavad külmaks teie magistri- ja doktorikraadid. Härra Mauruse maja on sõnnikukast.

Cameron ja konservatiivid Euroopas

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  • Spectacular victory for David Cameron’s Conservatives confounds expectations

  • Cameron needs to hold true to his pledge to hold the EU to account

  • Disillusion with Brussels and its stranglehold on Europe growing

  • Brussels needs to start listening but that would go against type

By Lars Seier Christensen

The election result in Great Britain is amazing in many ways.

Labour has been appropriately punished, even humiliated for the lack of a coherent economic policy and the wipe out in Scotland is plain embarrassing. But again, the SNP sends a message that prime minister David Cameron will also have to listen to.

The reaction in financial markets have been understandably positive with a strong rally in the pound, as it would appear the UK is in for a period of stable and responsible economic policy.

It is great to see that some voters in Europe recognise leadership that addresses economic prudence and I believe that Mr Cameron deserves his victory. His containment strategy towards UKIP has worked very well, but he needs now to heed to the message that the British public expects an in/out referendum on Europe.

When you, like me, are used to a proportional representation system, it feels bizarre that the third largest party hardly gains a seat, but still, Nigel Farage has had a lot of beneficial influence on Britain’s EU policy.

Hopefully, Brussels also gets the message but I doubt it. The EU never rolls anything back. It continues to amass more and more control in all areas.

The bureaucracy in Brussels has no self-criticism. No regrets. No matter how much and how often it fails. It just continues the roll out of its powers, and it will continue unabated, until someone says enough is enough. Until someone says stop….

Daamid ja härrad, selleks ongi meil demokraatiat vaja. See ei ole perfektne ja ma ei väida, et valija endale jalga ei tulistaks tihti, aga see on parim mida me teame ja arvestama peame inimloomusega. Ei ole need poliitikud halvemad ega paremad inimesed kui me kõik ja meile kõigile on tarvis demokraatiat kontrollimaks meid endid. Praegune poliitiline eliit ja ka inimesed on valmis demokraatiale sülitama mingisuguse utoopilise projekti nimel, mis on mingis mõttes justkui religioon. Näiteks minister Ligi on väljendanud, et mõnesid asju ei tohiks rahvas otsustada, et nagu spetsialistid peaksid teatud asju otsustama, samal ajal on ta demonstreerinud end täieliku võhikuna makromajanduses ja rahanduses.

Eks meis kõigis ole doos liberaalsust ja konservatiivsust. Kui Kreeka sündmusi jälgida ja ka teisi liberaalide väljaütlemisi, siis mina järeldaksin, et liberaalid on ideetu ja iseloomutu sült. Nende praegused liidrid kasutavad progressiivseid väljendeid ning panevad enda kõnedes keerulisi sõnu üksühe järel ritta, kuid tegijaid neist pole ning tundub, et  põhiprobleemidega tegelemine polegi nende prioriteet. Saaks tolmu üles keerutada natsiteemadel või kooseluseaduse pärast end lõhki rabeleda (mis reaalselt mõnda inimest isegi otseselt ehk puudutab), aga kui 100 000 inimest on väikeriigis töötud, siis püsib nende suu lukus, võib olla valavad mõne pisara kuskil. Ma võin eksida, eks konservatiivide seas ole ka selliseid inimesi, kuid üleüldist poliitilist trendi jälgides Euroopas, ütleksin mina, et pigem loodaksin neile.

Steven Hail´s presentation on modern money and the “budget emergency” in DVD format

Via    Green Modern Monetary Theory and Practice 

More than 10,000 people have seen at least part of our Forum now.

The most significant negative comments I have received have been to say it is ‘not mainstream’, and that it doesn’t reflect the political realities.

Well, how about we go over the heads of the tired old establishment and educate enough people so MMT becomes mainstream, and how about a politician with real leadership qualities changes the political realities?

Right now, the mainstream has nothing to offer, and the political realities certainly need to be challenged.

Läti ime, rahvastik on kahanenud 2007-2015 10%, õnnitlen parem-ja vasakpoolseid läti europedesid ja nende eesti kolleege

Bill Mitchell kirjutab:

Friday lay day – Latvia, the miracle of 10 per cent population shrinkage

The American journalist Andrew Higgins wrote in the New York Times (January 1, 2013) article – Used to Hardship, Latvia Accepts Austerity, and Its Pain Eases – that Latvia had become the poster child for those who advocated the “healing properties of deep budget cuts”.

Christine Lagarde visited Riga in late 2012 and announced that the IMF was:

… proud to have been part of Latvia’s success story

Earlier, Andrew Higgins told us in a Wall Street Journal article (December 1, 2008) – How to Combat a Banking Crisis: First, Round Up the Pessimists – that it doesn’t pay to criticise the neo-liberal Groupthink in Latvia.

He wrote:

Hammered by economic woe, this former Soviet republic recently took a novel step to contain the crisis. Its counterespionage agency busted an economist for being too downbeat … Investigators suspect him of spreading “untruthful information.” They’ve ordered him not to leave the country and seized his computer.

There were many examples of the secret police detaining people for expressing concern about the situation within Latvia.

The Finance Minister spokesperson said of the vigilance by the Secret Police:

It is a form of deterrence.

Another commentator said that “It is regarded as unpatriotic to criticize”.

Well some might have been ordered by the secret police “not to leave the country” but a substantial portion of the population has certainly not heeded that advice.

Here is the quarterly change in the Latvian population estimates from the first quarter 1995 to the first-quarter 2015. At the worst part of the crisis, the nation was losing more than 12 thousand people every three months.

Since March 2007, Latvia’s population has shrunk by 10.2 per cent.

Trahvime töötuid, et raha saada

No Job? Pay Up. Belarus Imposes Fines for Being Unemployed

Belarussian President Alexander Lukashenko has signed a decree imposing fines for being unemployed in a Soviet-style attempt to crack down on tax evaders and people working in sectors of the economy outside of state control.

The decree, signed Thursday, aims to “stimulate able-bodied citizens to engage in labor activity and fulfill their constitutional obligation to participate in financing state expenditures,” a statement published on the Belarussian presidential website read.

Working-age adults who live in Belarus, whether as citizens or permanent residents, would have to pay a fine unless they “participate in financing state expenditures” for at least 183 days a year. Acceptable forms of helping the state with its expenses include self-employment or being a full-time student, according to an explanatory note to the decree……

Ega ma eriti ei imestaks, kui meil ka töötuid trahvima hakatakse, et riigieelarve täis saada. Kuskilt peab ju riik raha saama…. :)

The Unheard-of Center: Critique after Modern Monetary Theory

Huvitav lugemine. MMT ei süüdista ahneid pankureid ja kapitaliste või laisku ja lolle töölisi, isegi kapitalismi mitte. MMT süüdistab poliitikat ja poliitikuid. MMT ei ole vasak- ega parempoolne.

The Unheard-of Center: Critique after Modern Monetary Theory

After Modern Monetary Theory or “MMT,” nothing looks the same: not political economy; not everyday caretaking; not paintings, pop songs, or porn sites.

Everyone knows that money makes the world go round. Yet MMT shows us that, far from being a private and finite commodity or an unwieldy network of global exchange, money operates as a centralized political architecture that is public, limitless and, above all, answerable to social needs and contestation. Thus critique after MMT assumes a singular aim, which is to make money’s answerability perceptible.

Both historically and ontologically money arises from the polity that issues it. Government establishes a money economy, MMT avers, by demanding taxes be paid in a currency that it alone supplies. And because political governance remains the source of money’s abstract value, there are no limits to how much government can spend toward the public purpose. As MMTer Warren Mosler will variously put it, demanding to know whence a political union will procure the funds it requires to support its population is tantamount to the absurdity of querying a sports referee regarding the source of the points she intends to award during a match. With this, MMT reveals that every currency-issuing government can “afford” to take care of the peoples and environs it subsumes and that the cause of modern economic mystification is not money’s mediation of commodity production, as Karl Marx famously argued, but the commodification of money as such…….

Vene rubla rallib

Vene rubla rallib

Reageerides rubla võimsale tõusule ja majanduse kokkutõmbumisele langetas Vene keskpank eile oma võtmelise intressimäära 150 baaspunkti jagu 12,5 protsendi tasemele. Vene rubla on olnud tänavu üks maailma edukamaid valuutasid, kirjutab Financial Times – pärast seda, kui kukkuvad naftahinnad ja lääne sanktsioonid ta läinud aastal dollari suhtes rekordmadalustesse läkitasid.

Et valuutat vee peal hoida, kergitas keskpank detsembrikuisel erakorralisel koosolekul intressimäära 10,5 protsendi juurest 17 protsendi peale.

Rubla eilne tõus dollari suhtes kujunes päeva lõpuks suisa 1,4-protsendiliseks.

Alates veebruari algusest on rubla kosunud USA dollari suhtes 36 protsenti.

Maailmapank pakub Venemaa tänavuseks majanduslanguseks 3,8 protsenti ning 2016. aastaks 0,3 protsenti.

Suuremat valitsuse defitsiiti on neil vaja, aga nad usuvad, et rublad saavad kohe otsa, turud ei taha enam rahastada jne.


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