Forcing UBS to swallow Credit Suisse

The Duran has posted the episode Forcing UBS to swallow Credit Suisse.

I don’t think either of these guys have the financial expertise to opine on financial matters. I think I have studied this area with a more open mind than they have. This is not to say that they may not have come up with some obvious and probably right forecasts, but for some of the wrong reasons. For the most part it won’t matter to most people if their reasoning is right or wrong.

One example that remains in my mind as I write this, is the hint that MMT does not say that inflation is defined as too much money chasing too few goods. MMT does not disagree at all with this definition of inflation. Perhaps the novel idea that MMT introduces is that you can increase the amount of goods as well as decreasing the amount of money chasing these goods.

The point that Alexander is making is that if traditional economics is applied, we could end up with less money chasing vastly diminished supply of goods. This would be the tragedy of misunderstanding MMT.

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