Yes, not only am I advocating for MMT […] No offense but you don’t understand the topic at all.

Called it. Touched a nerve didn’t I? The only ones that rival libertarians on the “you don’t understand economics” are MMTers. 2010 called dude, they want their snake oil economic theories back.

So USSR under Stalin were doing MMT now?! Haven’t heard that before I admit. Go tell that to your boy M.Hudson, see how fast he will throw a vase at you. Although these days he seems too embarrassed to associate himself with MMT.

To all this ahistorical bull I have to say during Stalin’s period USSR did a thing called war communism. They nationalize/collectivize everything, they mobilized all their productive forces to the maximum, they focused on heavy industry. They industrialize their economy in about 27 years while it took other countries more than 100. They did all that because THEY HAD TO. Noone wanted to trade with them and the Nazi threat was looming.

And all this came with an ENORMOUS cost for the people of USSR. But it had to be done. And of course it was reflected on growth, since Russian was one of the least industrialized countries in Europe and industrialize in such a small period of time. But that wasn’t supposed to be a model for other countries to emulate! It happened due to absolute necessity. Comparing 30s USSR to the current situation is nuts.

How’s the “father of MMT” Mosler doing these days? Is he still running his tax evasion schemes? Still waiting his answer on how can a country like Greece or Armenia do MMT? I remember those people back in the recession years coming to my country advising the “lefties”. Yeah didn’t end well for us but I bet they made a lot of money giving speeches and selling books…

First of all China’s average Monthly Money supply has more trippled in the last decade. I agree it must pick up but its by no means sluggish.

The real issue rn is the sluggish credit cycle. Who is generating the debt that drives the exponential increase in money circulation that you want now that you (China) are killing land finance. What is the asset base backstopping financial activity that goes hand in hand with that money generation now that land is not the fulcrum? Helicopter money drops still require central bank operations to issue a ledger, aka debt. No market economy has a choice on this matter. You either generate collateralized asset to drive money circulation or you don’t have a market economy. China right now is a market economy through and through. The USSR in the 30s and 40s ? Orders of magnitude less so. A weakness to that comparison to keep in mind

So, one should think of land sales in the Chinese economy the same way one thinks of Treasury Bills in the US economy. T Bills are the US’s unique magic sauce. That’s what the US economy discovered when FDR made war bonds go BRR. Capital formation is whatever collateral you can issue as a promise for future repayment. It doesn’t need to be land. China is trying to shift the basis of capital formation from land sales to more abstract financial instruments but it cant happen overnight. What is needed is a new ,mature, credit generation mechanism that fits China’s current state of development,administrative capacity and local finances.

Details MUST be very ironed out before attempting such expansions. Sure China is attempting to develop their bond market for example and is slowly itching twoards tax reforms but its not nearly there to support what you are advocating. Comparing it with a mid 30s NON capitalist, non market, massively planned and non globalized /financialized to the slightest USSR economy (with completely different resources and demographics as well as regional disparities and levels of development) doesnt help. Until local finances are sufficiently unlinked from land sales and the bond markets and tax system are sufficiently mature and reformed what you are saying cant happen. Restructuring must come first before any large monetary expansion but also happen slow and controled enough to not cause a bigger crisis. A delicate balance but one that China is walking at the momment quite efficiently

Many chinese economies advocate (more conservatively) for the direction you describe ,even before and during this plenum. The holdup is in the details of what the specific circulation and dept generation mechanisms will be and how they should work, how to steer them to the right kinds of activities and behaviors, use of credit, resources mobilised, the system’s turnover velocity etc

If Japan can survive for 30 years, it’s dead, and the vast amount of post-doc number wanking justifications for every single crisis are pathetic.

Japan is able to run those high dept-to-GDP number because, by suppressing all other financial investment mechanisms in its’ economy, it has deemed dept as one of the most profitable places for a Japanese person to park their savings accounts. They have essentially tied dept to savings. They are buying their own dept like crazy and finance their government expenditures that way but at the cost of increased inflation. The reason that they can still get away with it, is because they have some of the biggest car and tech industries in the world. But they haven’t grown in decades, their country is literally dying (one of the 3-4 worst birthrates on the planet), , they are one of the most depressed countries in the world and their debt keeps rising. Where will this end? Should they let the dept go to 700%? What happens when their actual economic engine (their industry) slows down? Presenting Japan as the model for your theory is not the win you think it is…