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PaperclipPerfector  6mo ago (text post)   24830 thread views

Culture War Roundup for the week of May 6, 2024

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One man's trash.

  • -13

Sorry, I kind of have to agree with ArjinFerman—at least, it would be disastrous for the forum if everyone started adopting your tone and habits of response. You're consistently above-average in antagonism and dismissiveness. And this definitely is one of the factors in you drawing more downvotes—it's often the reason if ever I downvote you. That of course doesn't address the overall problem of voting based on whether people like it driving dissenting views away, but it could make a meaningful difference in your particular case.

So I guess, two.

I know you don't like deficit spending, but I don't think I was particularly rude or dismissive in that recent exchange. I didn't accuse you of magical thinking as you accused me for disagreeing on monetary policy (I save that for the religious debates where I am summarily chastised). I feel that budget hawks continually underestimate the power of extend and pretend, and we may, in fact, be able to do it forever.

No, you're right, you were reasonable in that exchange, and I probably shouldn't have said that. I was the one less able to control my tongue keyboard. I guess I was thinking of other comments of yours. If all your comments were like the ones in that exchange, well, I'd prefer it if you'd get further into the weeds of what precisely was going on, but you were certainly civil enough.

If by extend and pretend, you mean the current policy, doesn't that end up requiring more of the world's resources each time, and is growing at a faster rate than the US's or world's economy?

I think infinite borrowing can be done at a sustainable rate; just not the one we're at. If it's below inflation, or below economic growth, there's not much of a problem. We're just in a much worse situation than that, and I think the way you tell that isn't by looking at who has e.g. the largest military, but at interest rates, amount of government spending spent on debt, rates of economic growth, etc.

Speaking of magical thinking. To quote Who's Line is it Anyway? "Everything's made up and the points don't matter". Debt is just a human construct. When you see people wax on about there being 200 trillion in ghost credit default swaps ready to doom the world economy when a butterfly in China's housing market flaps its wings it is hard not to just dismiss it all out of hand. MMT is, I think, a result of some institutions evolving to understand and use this concept. If we have the raw resources and the might to decide how they get divvied up, the rest is just semantics.

Sure, debt's just a human construct. But it's one that we currently depend on heavily in order to do things. Like, yeah, we can just not pay people (ignoring the constitution for a second), but then we'll have a harder time raising enough money to do things, because they won't trust the US's promises. (And yes, you can do things without money, but money's kind of how our whole economic system runs, and it's hard to have efficient alternatives.)

If we have the raw resources and the might to decide how they get divvied up, the rest is just semantics.

To be clear, you're recommending something like a tribute system, since you've mentioned the military? Or is this just divvying up domestic goods? The US is a net importer, I believe. (And incentivizing new innovation and production is an important role of an economic system beyond just dividing existing goods.)

It isn't a tribute system. It is just the implication. These women are not in any danger. https://youtube.com/watch?v=-yUafzOXHPE

If you're borrowing at or below inflation or what have you, you're leaving a ton of resources on the table that you should be trading worthless promises to secure. This is the new world!

So you're saying, yes, the move is to pressure others to buy US debt or otherwise prop up the otherwise insolvent US government.

I'm afraid I mostly didn't track what you were saying in that second-to-last sentence.

worthless promises

Promises only have worth because they can be trusted.

The main thrust here is that we are trading promises (however trustworthy or not) for actual goods. If you can do that with cheap money, as we have been, all the better. Worst case you just inflate the pain away. What matters is the underlying assets, the Oil the car company, the wafer fab, the farms, money is just an idea.

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Ironic shitposting is still shitposting.

I've never posted ironically. I stand behind every post I've made. Unlike those of you who hide their posting history.

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