Kelton is like Trump. They want to bust open the New Normal and force the Fed to forget about ever causing recessions. They believe low rates allow bigger deficits. The Fed will never forget about causing recessions. Has the Fed done a bad job? Has the Fed pulled the inflation trigger a little too early? Of course. But MMT certainly is not the answer. Still, demand is low. We have a form of austerity. Austerity can kill economies too. If we reject MMT there should be something else, like helicopter money.

Another interesting article. But clearly, the Fed itself measures the worker's share of GDP. Obviously the Fed thinks it is an important measurement. I don't think it can be dismissed. And it is in a steady decline, with blips up prior to recessions. So, it seems like a worthwhile measurement. And it is obvious from the Fred chart that prosperity for workers has been in decline in relation to GDP: https://fred.stlouisfed.org/series/W270RE1A156NBEA

I don't quite understand how Europe has turned a corner while PMI remains below 50, Marc. Certainly building inventory and lower consumption is not a good thing for the USA, as you point out.

Interesting article, but it ignores the lack of investment by these companies who are busy buying back their shares. Investment is lagging. And the insiders know how to get out of the possible massive stock declines early, resulting from this speculation without investment, while the average 401k guy is toast, especially if older.

Second chart is very chilling. The central bank pines for rates to go up, prof, likely because they are not high enough to avoid negative later. Since the ten year yield is really low, under 2 percent, the entire edifice is being supported by house appreciation and the ability to roll over the loans. This appears to me, as an outsider, to be very precarious. Any interference by China due to Meng could be devastating to the nation. This is just my opinion, as I am no expert on Canada.

Marco Rubio and Pence were deceived. In order for the tax cuts to work, they would have had to included mandated investment. That isn't socialism, just common sense. Don't want to do that, then don't steal from the nation with tax cuts for the wealthy!

This arguement linking MMT to socialism is misleading. MMT was also a favorite of capitalist and totalitarian Richard Cheney when he was at war. Remember, it was a Republican who popularized the notion, as Cortez was growing up, that deficits don't matter. So, making it all on the left is just not honest. Cortez is 29. She would have been 14 when Cheney said that in 2002. MMT is wrong, period, on both sides of the aisle.

We have to assume that Trump is all hat and no cattle.

High priced buyers are vanishing.

Most of the time, lower rates are proof of contraction, but not always. But MMTers say lower rates are proof that we could be running bigger deficits, expanding more. But what if that is wrong? MMT could get us into a lot of trouble as a nation.