Comment by pc_edwin | Hacker News Reader

Comment by pc_edwin | Hacker News Reader

It's ironic how Silicon Valley played a significant role in the current administration's rise to power.

I'm not even referring to the peculiar moderation strategies employed by Twitter, YouTube, and Facebook. What's truly fascinating to me is the extent of donations from billionaires and high-earning employees to get these politicians elected. The sheer amount of money involved is mind-boggling.

To be honest, a part of me was against the idea of backstopping (bailouts). I wanted these people (you guys) to see the consequences of the monster they have created.

And just to be clear, this is your making and its just the beginning. It's a result of a chain of events that can be traced back to the lockdowns and MMT economics. While it's easy to blame individual actors for the collapse of SVB, the truth is that all of this could have been predicted. It's not sustainable to continuously pump money into the system, creating an extreme level of fragility, only to drain it out later without any consequences.

> MMT economics

https://www.investopedia.com/modern-monetary-theory-mmt-4588...

«Modern monetary theory (MMT) is a heterodox macroeconomic supposition that asserts that monetarily sovereign countries (such as the U.S., U.K., Japan, and Canada) which spend, tax, and borrow in a fiat currency that they fully control, are not operationally constrained by revenues when it comes to federal government spending.

Put simply, modern monetary theory decrees that such governments do not rely on taxes or borrowing for spending since they can print as much money as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of a rising national debt.

- Modern monetary theory (MMT) challenges conventional beliefs about how the government interacts with the economy, the nature of money, the use of taxes, and the significance of budget deficits.

- These beliefs, critics say, are a hangover from the gold standard era and are no longer accurate, useful, or necessary.

- MMT is used in policy debates to argue for such progressive legislation as universal healthcare and other public programs for which governments claim to not have enough money to fund.»

When I hear that I wonder why we just don't eliminate all taxes? The economic benefits would be huge!

To elaborate, I'm convinced that Jerome Powell knew something like this was bound to happen.

However, in my opinion, the decision was made that it would be more feasible to address any issues that arose from rate hikes than attempting to address the potential consequences of inflation runoff.

Weird how people said the very same shit about Trump in 2016 (that it was all a byproduct of astroturfing and social media). At this point I think social media is just what pundits defer to when they're being sore losers because the black box they run as is an easy scapegoat for a lot of things. Also Biden's cabinet is full of old school Keynesians, so I really have no idea what you are on about when referencing MMT. You can tell he's no true proponent of MMT because he actually cares about defecits and talks about his impact on them fairly often in speeches.

The funniest part of the Trump era is people convincing themselves that Trump is somehow their ally in working against the billionaire class. He's just supported by different billionaires.

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