{"id":54761,"date":"2020-08-21T08:05:50","date_gmt":"2020-08-21T13:05:50","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54761"},"modified":"2020-08-21T08:05:50","modified_gmt":"2020-08-21T13:05:50","slug":"blains-morning-porridge-21st-august-2020-john-laws-mmt-revisited","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54761","title":{"rendered":"Blain\u2019s Morning Porridge \u2013 21st August 2020 \u2013 John Law\u2019s MMT revisited"},"content":{"rendered":"
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Blain\u2019s Morning Porridge \u2013 21st August 2020 \u2013 John Law\u2019s MMT revisited<\/strong><\/u><\/a><\/h3>\n

\u201cEarlier today apparently a woman rang the BBC and said she had heard that there was a\u00a0<\/em>hurricane<\/strong><\/em>\u00a0on the way. Well if you are watching, don’t worry, there isn’t.\u201d<\/em><\/p>\n

It\u2019s blowing a full hooley out there this morning, which is very bad news for my olive trees as the storm is shaking the ripening fruit off. Shame. It\u2019s the first time our little olive grove has produced what looked likely to become full-sized olives. I was going to add them to Dirty Martinis. Meanwhile, mink farms are being wiped out by coronavirus which is proving 100% fatal to the well-dressed ferrets. Interesting, but what does it mean\u2026?<\/p>\n

It\u2019s Friday, which means I am allowed to go off on something of a tangent<\/strong>\u00a0\u2013 so let\u2019s not worry about how long this tech rally continues, the rising tensions in Europe, Apple spending $17bln on stock buybacks, China vs US, or the US election.<\/p>\n

What\u2019s got me worried this morning is the headline in the FT:\u00a0UK Public Debt tops \u00a32 trillion for first time on Covid Spending Boom.<\/a><\/p>\n

Should we worry or should we not? (Clue: the first one\u2026)<\/p>\n

Let me ask the question:\u00a0how long can governments continue to spend their way out of the Coronavirus crisis?<\/strong>\u00a0The bills for long-term furlough programmes and sectoral bailouts and support, increased social services as unemployment rises, and the urgent need for health spending are going to come due at some point. Is it going to be a problem, and if yes, how big?<\/p>\n

Government debt is rocketing higher \u2013 but does it matter? Conventional thinking, based on Reinhart and Rogoff, is when debt\/GDP exceeds 77% there will a significant slowdown in growth.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

  Blain\u2019s Morning Porridge \u2013 21st August 2020 \u2013 John Law\u2019s MMT revisited \u201cEarlier today apparently a woman rang the BBC and said she had heard that there was a\u00a0hurricane\u00a0on the way. Well if you are watching, don’t worry, there isn’t.\u201d It\u2019s blowing a full hooley out there this morning, which is very bad news […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[15674,124,2326,391,431,3676,24043,17970,534,538,22663,661,662],"class_list":["post-54761","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bill-blain","tag-central-banks","tag-government-stimulus","tag-growth","tag-interest-rates","tag-john-law","tag-mmt","tag-modern-monetary-theory","tag-monetary-policy","tag-money-printing","tag-morning-porridge","tag-qe","tag-quantitative-easing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54761"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54761\/revisions"}],"predecessor-version":[{"id":54762,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54761\/revisions\/54762"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}