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Post by Iain Dooley on Aug 14, 2016 11:56:09 GMT
I had a chat with Steve Keen this week and he's interested in being involved with the party (although very time poor!) Although he does disagree with some policy emphasis of MMT he is more or less aligned with the party's goals and one thing we all agree on is the need for a dramatic reduction in private debt. To that end, and in keeping with our approach to policy development, I would like to analyse his manifesto through the lens of our policy frameworks and outline how this could be presented as a core AEP policy: www.debtdeflation.com/blogs/manifesto/Interestingly, I think that private debt reduction potentially has more scope to be a very popular, headline grabbing policy than full employment.
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Senexx
Junior Member
Posts: 81
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Post by Senexx on Aug 22, 2016 4:44:22 GMT
I would use both private debt reduction and full employment to be all inclusive. Otherwise you are excluding one group to the detriment of another. The very thing the AEP is trying NOT TO DO.
As for MMT policy emphasis, there is only ONE - Job Guarantee/Full Employment. Well TWO I guess if you count 0% cash rate at the RBA (which I suppose is the elimination of bonds)
Other MMT advocates do suggest things as making our RBA like the BoE where the Central Bank & Treasury are double entry accounting offsets of one another that balance. I guess you could say some advocates wish to make the transactional system between all agencies to be as clear as crystal. That's about the strength of any policy emphasis from MMT.
Personally I oppose the 0% OCR until a JG exists at least, as I believe this rate also determines what my savings and investments earn in interest in the private banking institutions. Feel free to research and correct me on that. So if the 0% was implemented overnight I'd have no money to live on.
I read Keen's debt Jubilee proposal years ago and from my limited understanding it was not something the central bank could manifest, since that time though he's been specific and in one of his articles or posts he has done a step by step transaction to show exactly how it would work which clarified the matter. It made sense to me but I have no idea where I read it.
The Manifesto manifests many things. I did not view them through the AEP framework yet but was looking to see if it contained the transactions for the QE for the People. It did not. However my own research (which could be incorrect) a year or two ago about full reserve banking suggested that going to such a system was identical to returning to commodity money and thus limited domestic policy space.
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Post by Iain Dooley on Aug 24, 2016 2:32:43 GMT
Thanks Senexx I'll hopefully get the chance to follow up on this in more detail this weekend
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rod
New Member
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Post by rod on Aug 26, 2016 2:25:25 GMT
As I see it Steve Keen would like to see private sector debt below 70% of GDP as his modelling and historical data shows that economy performs well when not servicing private massive debt.
Keen is not a fan of full reserve banking, you can't leave creation of money in the hands of Govt bureaucrats like Positive Money would like to see. He still believes that capitalism requires the animal spirits just that financial industry needs some serious regulation.
As for a debt jubilee Keen sees that as a way of quickly deleveraging after a credit crunch, to avoid the stagnation that Japan has been in for the last 25 yrs and other countries are now experiencing. The same could be said for Govt deficit spending and a JG, maybe not as fast but allowing the private sector to spend and net save will have the same affect along with banking regulation to stop the credit blowout.
MMT says that Govt can deficit spend without debt so the Govt can do cash handouts and say that people in debt must pay down debt. Any debt paid off simply destroys that money, the balance would be doing enough to delever and not increasing the money supply excessively with those that aren't carrying debt.
I suggest it would be a balance between MMT /JG, some debt jubilee and reregulation to kickstart the economy after a credit crisis.
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Post by Iain Dooley on Aug 31, 2016 11:14:38 GMT
Sorry I didn't get a look in here over the weekend I'm mostly focused on promotion and only have a handful of hours per week to get down into the nitty gritty
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Post by Jesse H on Sept 4, 2016 7:51:24 GMT
Totally in favour of a private debt jubilee. I wrote an article on it a while ago. www.prosper.org.au/2016/03/29/the-modern-debt-jubilee-a-taboo-medicine-we-desperately-need/I see a private debt jubilee as an ideal way to reduce mortgage debt and allow the introduction of a board based, no exemptions, flat land value tax. At the moment land tax is difficult to implement as people fear losing the equity in their land and going into negative equity due to the tax reducing land prices (land affordability). A debt jubilee would compensate them for that, by compensating for lost equity or preventing negative equity from occurring. I will put info on the reasons for land tax as proposal in the tax section of the forum.
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Senexx
Junior Member
Posts: 81
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Post by Senexx on Sept 7, 2016 2:51:38 GMT
I have certain qualifications I would had on a LVT so I look forward to your engagement.
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Post by Iain Dooley on Oct 27, 2016 22:11:54 GMT
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