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Biden Economics Adviser Admits He Doesn’t Get Economics

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mystery-ak:
Biden Economics Adviser Admits He Doesn’t Get Economics
Christopher Jacobs


A recent viral video receiving millions of views online explains why millions of American families continue to struggle with “Bidenflation.” Well, perhaps “explain” is too strong a term.

In the video, an excerpt from the new leftist documentary Finding the Money, Jared Bernstein, chairman of the White House Council of Economic Advisers, discusses modern monetary theory—the idea that the federal government could eliminate the national debt simply by printing money. To say Bernstein’s musings on the topic lack coherence is an understatement:


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https://twitter.com/Geiger_Capital/status/1786377408993468714

Anyone who feels more confident about “Bidenomics” after watching this video probably should get his head examined.

more
https://thefederalist.com/2024/05/06/bidens-economics-adviser-tacitly-admits-he-doesnt-understand-economics/

DB:
"Ironically, the Wall Street Journal recently reported that the Trump campaign is considering a separate series of policy proposals intended to “blunt” the Fed’s independence. But if Trump’s proposals for greater tariffs would exacerbate inflation (and they would), modern monetary theory poses a far greater risk to the economy and to the Federal Reserve."

mountaineer:
Well, he never studied economics or even business. He's a former jazz bassist.

https://www.gopbriefingroom.com/index.php/topic,530416.msg3007167.html#msg3007167

DefiantMassRINO:
Money is only one facet of economy.

Money is a means of storing value, exchanging value, transferring wealth, and denominate prices.

Money is worthless and useless if it cannot store value.  As money is devalued (aka inflation), it loses value.  If I have money that is being devalued, I am getting poorer because I can purchase fewer goods and services.

No counter-party is going to accept payment in money that does not store value.  Why would I sell something in exchange for money that loses value?

As a form of money is no longer accepted nor trusted as payment, it's utility in economic activities decreases.  If I cannot exchange a unit of money for good or services, it no longer has value.

In economics, scarcity creates value.  As the scarcity of money declines, so does the value.  This is why a larger money supply can cause "inflation".  The good or service has retained its value, but the money has lost its value.  As money devalues, I need to use more money (higher prices) to purchase that same good or service.

This is the danger of unlimited Government borrowing - unlimited lending - and unlimited printing of money.  If no one trusts or accepts the US Dollar, I lose my ability to participate in economic activity - to store value, to exchange value, to transfer value, and to denominate the price of value.

Economic counterparties will seek out alternative means to store value, to exchange value, to transfer value, and to denominate value price.  Those holding dollars will be unable to use those dollars to exchange for food, housing, etc.  Holding a devaluing dollar will impoverish me.

This is the folly of using hyper-inflation to balance Government debt liabilities.  On paper, the books may balance, but, a dollar-denominated economy will cease to exist.  Those holding dollars will be up $h!t'$ creek without a paddle.  A lifetime of work and sacrifice will be worthless and useless.

This is why you'll see William Devane schillng US Gold Coins on late night TV.  Precious metals, or anything that is not the dollar, can be used as an insurance policy against a worthless dollar.  Having a few gold and silver coins may help you sleep at night; but to be useful, you need to be able to exchange them with a counter-party for something else of value ... like food, shelter, and bullets.

Wingnut:
He has a degree in liberal arts from Columbia. So he is more than qualified.

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