Monday, 11 December 2017

Radu Tudor, defending rent seeking

@RaduTudorA3 just made the most moronic comment about why banks in Romania practice higher markups than elsewhere (he referenced Spain in particular), because, he said, Romania's GDP is smaller. #MMT

Banks change numbers on their own ledgers when they issue loans & they do settlement payments with reserves (which are checking accounts at the Central Bank). Fees are one thing, interest is just unearned income. It's pure rent seeking.

The reason why the banking sector in Romania, as well as other sectors of the Romanian economy, practices higher markups than elsewhere is due to a LACK in competition. Cartels = price gouging. Competition = you raise your price, I don't, and I eat into your market share.

But continue to make the apology for the corrupt European and American interests inside Romania. Continue to lick their ass as you lament the lack of Romanian sovereignty.

Thursday, 7 December 2017

Economic Lessons From Dead People

Friedrich List, Adolph Hitler, Kenneth Boulding, and Carl Menger

"I don’t wish to go at length about this mass delusion, which is ingrained in our collective conscience (no matter what country we’re from). Instead, I’ll invoke the wise words of a few dead people who didn’t regard money as an obstacle to getting things done."

Read more here:

Thursday, 30 November 2017

Lessons from History, Romania & Iran, austerity & regime change

My 5th piece for Splice Today is up

"... Instead of negotiating debt rescheduling, as other countries did who faced the same financial troubles, Ceausescu simply decreed that the entire external debt would be paid off. Shock therapy commenced at his whim..."

Read it all here:

Sunday, 19 November 2017

The Purity of the Wild ISN'T Nirvana

Next time some idiot tells you that animals only kill to eat & in self-defence, show them this

Tuesday, 7 November 2017

Romanian wisdom from its commie years

During Romania's communist years there was a saying - The communists pretended to pay us, and we pretended to work.

Monday, 6 November 2017

Keen is not good for Corbyn, LoL

See this

Sorry, Billy, I do not concur.

You seem unable to dissociate between MMT (descriptive theory) and prescription (actual policy), which depends on desired means & ends. Corbyn would be lucky to have Keen as advisor.

Monday, 23 October 2017

Coppola's "beyond disappointment" is beyond disappointing

Read her entry here

So if there had been POC men or POC women spewing the same old orthodox economic narrative, would that have made a difference? There are plenty of white male heterodox economic thinkers, whether they are part of the academia or not. Could we please stop demonizing the skin colour and the genitals, please? And she thinks ex nihilo theorists are something "new" under the sun, lol. If Coppola thinks it's interesting or "new" the question of whether or not banks earn seignorage when they issue loans, then she doesn't understand that they are claiming that banks print the Gov's money (that they are counterfeiting). Let's say I become famous overnight in my town & everyone in my town accepts my IOUs in transactions & people come asking me to borrow my IOUs so they can do their own thing & I charge them in return HPM (High Powered Money, aka Government IOUs, aka Government tax-credits) + a markup. How the hell is that seignorage? There is NO seignorage forgone by the Government when it allows institutions to issue contracts & make entries on their own ledgers. The banking system is certainly inequitable & unnecessary under its present architecture, but that's a story about public purpose & asset side regulations for another time. There's a reason I stopped following Coppola's bullshit (for about 2 years now), and I'm glad for it. Especially since she adopted this faux pissed off feminist SJW nonsense, on top of her labeling ex nihilo ideas as something new & worthwhile, especially since they're not new & are debunked by stock-flow consistent analysis & institutional inquiry.

Here's an example of how mental she is:
"One of the old white males (I forget which one, they all looked the same to me)"
Give me a fucking break. She has a problem with white men, but only mentions 3 white women, herself, Pettifor, and Mazzucato (who were not invited to speak at the conference). Damn, Coppola. Where is that colour diversity again?

Friday, 6 October 2017

Kemp and Stephens' representation of economic rent for oil and gas industry

However, these were not just simple errors of judgment at particular conjunctures—they reflected a more general perspective on a government's role with respect to its oil and gas sector, a perspective which Mommer (2002) conceptualises as 'Non-Proprietorial Governance'. The presence of nonproprietorial governance in oil and gas is signalled by a fiscal regime which in effect assumes a certain responsibility for the profitability of oil and gas companies operating on its territory by basing taxation increasingly just on the profitability of the sector, a perspective which draws succour from an academic literature concerned to promote the virtues of 'efficient', 'neutral', Ricardian rent-seeking resource taxation (see Abdo, 2008). This contrasts with 'Proprietorial Governance' under which a government is more simply a landlord seeking to maximise rent from sovereign ownership of its resources—the profitability of oil and gas companies is a function of international oil prices, and not a legitimate concern of government seeking to represent the interests of its citizens.