fbonetti

15 ms·

1.
by fbonetti 6y ago
That's hilariously accurate.
2.
by fbonetti 6y ago
You’ve got it backwards when it comes to residential real estate. More people become renters during a recession. Vacancies reduced dramatically after 2008. https://fred.stlouisfed.org/series/RRVRUSQ156N
3.
by fbonetti 6y ago
You also seem to be arguing that centrals banks don't create new money, which is an odd assertion, especially for a proponent of MMT. From the article you posted: > "QE involves a shift in the focus of monetary policy to the qu
4.
by fbonetti 6y ago
> My question is: if a government deficit is adding money to the economy, what a government surplus is doing? That's the meaning of "taxes destroy money". It's rare for the federal government to run a surplus, but it
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by fbonetti 6y ago
> But if there's a fall in aggregate demand at a given price level, there are _fewer_ dollars chasing the same number of goods for a period of time. So if government spending is greater than taxation for that given period, it doesn&
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by fbonetti 6y ago
> So, what you are saying is that government deficits are inflationary because they add money to the economy, but, on the other hand, government surplus don't retire money from the economy? Honestly I don't know what point you&
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by fbonetti 6y ago
> A good aspect of MMT is that it explains how the Treasury spending more than it takes in in taxes means more money is created into the economy than is deleted out of the economy. This is the more important thing to focus on. This is on
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by fbonetti 6y ago
Buy the stuff the Fed is propping up - stocks and real estate.
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by fbonetti 6y ago
Adults are capable of deciding risk/reward factors when selecting a job. There are many jobs that are well known for being grueling, and yet people still sign up to take those jobs because they value the compensation more than other co
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by fbonetti 6y ago
The thrust of ABC is that artificially cheap credit, induced by the central bank, causes malinvestment. Interest rates are signals of risk. When you artificially lower interest rates, people take on more debt than they normally would and in
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by fbonetti 6y ago
The Fed artificially lowered the interbank rate to zero percent for ~7 years after 2008, bought other treasuries across the yield curve, and bought trillions in mortgage backed securities. This created an environment that disincentivized sa
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by fbonetti 6y ago
If you aren't happy with Amazon, Facebook, Google, Apple, etc, you can choose not to be a customer of them. You can't opt out of paying taxes.
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by fbonetti 6y ago
You can have these services without sacrificing privacy, but you have to pay a monthly subscription fee. Here's one example: https://mewe.com/
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by fbonetti 6y ago
> people simply value the utility they gain out of these tools higher than privacy. Exactly. I bet if Facebook offered a paid, ad-free version of their service, 99.9% of people would not use it. The monetary value of Facebook is $0 for m
15.
by fbonetti 6y ago
Don't use Elm at your startup. It's been dead for a long time. Pick something that has a huge community behind it, like React.
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by fbonetti 6y ago
I think people have already taken the good parts of Elm and implemented those ideas in other frameworks. Redux was inspired by the Elm, for example. I personally like using React, Redux, and Typescript. It's nowhere near the purity of
17.
by fbonetti 6y ago
Thanks, I'll take a look at this paper.
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by fbonetti 6y ago
I don't disagree with you that the government is unconstrained in regards to how much it can spend. The government doesn't need to tax or sell bonds at all. It can just print money and force everyone at gun point to use it. But yo
19.
by fbonetti 6y ago
> The effect of taxation is precisely the same as that of destroying money No it's not. The effect of taxation is the same as theft. The thief gains and the victim loses, but the overall purchasing power of the dollar is unchanged.
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by fbonetti 6y ago
You're missing the point of the example. Substitute tomatoes with something with a long shelf life, like Spam. It doesn't matter. The point is that the people utilize leverage (loans) in order to fund investments that will yield a
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by fbonetti 6y ago
> The purpose of taxation isn't to fund government operations, its to maintain demand for dollars. Yes, taxation is one of the ways to create demand for an otherwise worthless fiat currency. So are legal tender laws. This still does
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by fbonetti 6y ago
> Money enters the economy via government spending. Money leaves the economy through taxation. Dollars enter the economy when the Federal Reserve creates reserves out of thin air and trades those new reserves for treasuries or other asse
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by fbonetti 6y ago
> tomorrow it can take $x out by levying a tax. Taxes don’t take dollars out of circulation. The government spends those tax dollars immediately after collecting them. The only way the monetary base can be decreased is by the central ban
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by fbonetti 6y ago
You’re only looking at one side of the equation. Assuming demand stays constant, if you reduce the number of tomatoes, their price will go up. Likewise if you increase the number of dollars, the price of tomatoes will also go up, because ea
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by fbonetti 6y ago
> inflation is just the trend in average prices Price inflation is not some force of nature - it’s deliberately induced by the central bank out of a belief that falling prices are bad. The trend in market economies is for everything to g
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by fbonetti 6y ago
Well that's embarrassing. Could you imagine being the crew of the cruise ship and having to rescue the clowns that just tried to ram you?
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by fbonetti 6y ago
The Fed also kept interest rates near zero for years after the last recession. That’s where all the cheap credit came from in the first place.
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by fbonetti 6y ago
They’re losing revenue due to the massive amount of recently cancellations.
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by fbonetti 7y ago
Same in Illinois and Michigan.
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by fbonetti 7y ago
That’s basically what I’m doing, except with a 3 unit building in Michigan. In an average month, the two AirBnB units bring in 3-4x the mortgage in revenue. Not enough to retire of course, but it’s a nice side hustle. That being said, our b

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