- 27 Feb 2022 03:00
#15214486
From recent podcasts of The Problem With Jon Stewart
Thomas Hoenig was President and CEO of the Federal Reserve Bank of Kansas City right after the GFC/2008. He was the only one who voted against QE. He saw that QE was going to be a disaster.
Money is basically a lie we tell ourselves so the world doesn’t implode. In this week’s podcast, Jon talks to economist and former President and CEO of the Federal Reserve Bank of Kansas City Thomas Hoenig to get to the bottom of our national debt.
My take on the podcast with Hoenig is that he is being obtuse. Jon suggests that the US can reduce its national debt by minting some $10T coins (Really some $10B coins would be more useful). Hoenig asserts that such coins are just another form of liability on the Fed. That is, coins, bonds, and all paper dollars (all electronic dollars??) are liabilities on the Fed. and so he implies we would gain little. IMO, this is BS. If such coins are liabilities then so are the dollars used to pay off the bonds as the come due. It may be true, but it is missing the point.
. . . Also, the Fed can't go broke, and it can't run out of dollars; so who cares if the Fed is smothered in liabilities? It doesn't matter at all about anything.
. . . The MMTers in the 3rd video assert that the US can't go hog wild with this creation of dollars, that there is a imit. The limit is when inflation starts getting to high.
I found the 1st and last to be spot on. [I have not watched the 2nd, and included it because you might want to see it all.]
A 6 min. intro
The entire pod cast
https://podcasts.apple.com/us/podcast/j ... 0548449939
Then a follow up with 2 leading MMTers (52 min. long) that resulted from the above podcast
https://podcasts.apple.com/us/podcast/j ... 0548449939
.
Thomas Hoenig was President and CEO of the Federal Reserve Bank of Kansas City right after the GFC/2008. He was the only one who voted against QE. He saw that QE was going to be a disaster.
Money is basically a lie we tell ourselves so the world doesn’t implode. In this week’s podcast, Jon talks to economist and former President and CEO of the Federal Reserve Bank of Kansas City Thomas Hoenig to get to the bottom of our national debt.
My take on the podcast with Hoenig is that he is being obtuse. Jon suggests that the US can reduce its national debt by minting some $10T coins (Really some $10B coins would be more useful). Hoenig asserts that such coins are just another form of liability on the Fed. That is, coins, bonds, and all paper dollars (all electronic dollars??) are liabilities on the Fed. and so he implies we would gain little. IMO, this is BS. If such coins are liabilities then so are the dollars used to pay off the bonds as the come due. It may be true, but it is missing the point.
. . . Also, the Fed can't go broke, and it can't run out of dollars; so who cares if the Fed is smothered in liabilities? It doesn't matter at all about anything.
. . . The MMTers in the 3rd video assert that the US can't go hog wild with this creation of dollars, that there is a imit. The limit is when inflation starts getting to high.
I found the 1st and last to be spot on. [I have not watched the 2nd, and included it because you might want to see it all.]
A 6 min. intro
The entire pod cast
https://podcasts.apple.com/us/podcast/j ... 0548449939
Then a follow up with 2 leading MMTers (52 min. long) that resulted from the above podcast
https://podcasts.apple.com/us/podcast/j ... 0548449939
.
- By FiveofSwords
- By JohnRawls
- By Deutschmania
- By litwin