The carbon tax

[The Artist formerly known as Sappho]

I support the sensible approach that says the govt just spending money will create inflation/hyperinflation. That has been my approach all the way through this dramaqueen thread of yours, Sappho.

You are talking to Wile E. Coyote, not Sappho. There is no evidence to suggest that nation building a green energy network and reducing unemployment into the bargin will result in hyperinflation. In that other thread, it was you who made the point that MMT/FFT results in full employment. Here, Gillard has a chance to apply this concept and she is not, yet you support her lack of action on reducing unemployment whilst equally supporting MMT/FFT that can reduce unemployment.

Can you at least try and make up your mind which you prefer?

[Jovial Monk]

I am addressing Sappho.

[The Artist formerly known as Sappho]

I am addressing Sappho.

Evidence?

Still, you have my question. For you, it is more important who you are talking to rather than what you are talking about.

[Jovial Monk]

Yup, Sappho, the would-be profound one.

[The Artist formerly known as Sappho]

Yup, Sappho, the would-be profound one.

Monk. You seem to be obsessed by this Sappho person, and I am not. You seem to care more about who is saying what, and I care more about what is being said. You seem to care more about trivialities hindering debate, and I care more about forwarding debating and learning from that process.

We are opposites and on a forum, continuing my discussions with you would result in frustrations for both of us. Therefore, I apologise, but I am putting you on ignore. It is better for both of us. May you enjoy whom ever it is that you prefer to taunt, tease or discuss with and let me enjoy the debates and discussion as they occur.

I hope you find your Sappho.

[lisa jones]

Hmmm.

[Jovial Monk]

Bwahahaha what a pseud Sappho is!

The fact she can’t explain whatever that statement was in simple language just shows she has no idea what it means. I also think it is rude to enter a conversation wearing a mask.

[lisa jones]

I knew it was a sock from the moment it began posting.

[Rainbow Moonlight]

"There is no evidence to suggest that nation building a green energy network and reducing unemployment into the bargin will result in hyperinflation."

I agree with this Monk. I would have thought you did too.

The problem may come in borrowing money to do this as that starts to affect relative value of our currency and purchasing power.

[The Artist formerly known as Sappho]

"There is no evidence to suggest that nation building a green energy network and reducing unemployment into the bargin will result in hyperinflation."

I agree with this Monk. I would have thought you did too.

The problem may come in borrowing money to do this as that starts to affect relative value of our currency and purchasing power.

Now, where it is that a MMT government, without a tax system, needs to produce a common good, labour and resources are required to satisfy that need. Government supplies the currency by spending it into existence according to the demands made by the common good to be satisfied. If it is a significant common good such as creating a green energy supply an increase in the supply of currency can cause inflation and so devalue the currency. To zero out that inflationary influence, the government can increase labour costs, which in turn inflates the cost of consumables.

Getting technical: Increasing monetary inflation is offset by increasing cost push inflation which causes demand pull inflation with the net result being zero inflation. Remember, GDP would also increase to account for this increase in money supplied, labour costs and consumer costs because there is a nation building project driving this.

Probably best at this stage to let the carbon tax be discuss since MMT/FFT is not in full use. Our monetary system still assumes a finite currency capacity, hence tax, the fed reserve, bonds etc.

Having the same discussion over two threads is pointless.