Lira is collapsing for political reasons, as did the Russian rubble, the Ukrainian Hryvnia, plus the Argentinian & Venezuelan currencies as well. These currencies did not collapse due to higher rates! They collapsed due to a collapse or a threat of a collapse of their productive output. That is what caused higher rates as a RESULT not a CAUSE! But President Norman by his own admission doesn’t have a clue why these currencies tanked. Yet he claims he is applied MMT. Bullschitt! In what alternate universe is this MMT???
If tomorrow Erdogan would be removed from power, the Turkish Lira would soar!! Would president Norman say it is due to higher interest rates?? Of course not, he would try to save face and say “it is a short covering rally” because he is economically and financially ignorant as to what causes currencies to devalue in such a manner.
Recently there was an exchange between Steve Keen and Mosler and MMT about job producing exports being a cost. Bill Mitchell, Kelton and other so-called MMT PhDs rushed to bombard Keen and shut him down. Well Turkey is a fine example how an importing country with its own monetary sovereignty is experiencing a collapse in its currency due to foreigners owning most of their ASSETS! (Who are now all selling).
Contrast this with Qatar an exporting economy facing similar political and productive challenges and the currency is doing just fine. In fact, Qatar doesn’t even tax it’s people.
So all this voodoo economics and financial nonsense these FAKEMMTERS are spewing in theory is simply and without a doubt WRONG! Comically WRONG! Not because I say so, but rather Math, Facts and Data say so.
Just like their ridiculous Soviet Job Guarantee and UBI garbage that once again under FAKEMMT production output does not matter to them. So if half of America is planting flowers and peeling gum off the street, continuing to import (exporting real productive jobs), all under MMT teachings, and they seriously believe this is going to value the USD and Make America Great Again? They are Jim Jones, Wacko Texas Branch Davidian certifiably fucken crazy!!
Unfortunately that is the bullschitt these FAKEMMTERS believe and teach people.
JOB guarantee for all, anytime they want, and they can’t get fired, FOR THE PUBLIC PURPOSE!
JOB CREATING EXPORTS ARE A COST!
JOB EXPORTING IMPORTS ARE GOOD!
UNIVERSAL BASIC INCOME IS GOOD FOR YOU TO SIT ON YOUR COUCH WITH YOUR WIFE-BEATER SHIRT ON AND PLAY VIDEO GAMES ALL DAY!
PRINT! PRINT! PRINT!
…and we all reach the Utopian promised land!!
Steve Keen is starting to realize what I mean when I say FAKEMMTERS. Just like we here at PUREMMT have been saying for a long time.
It is very sad to us to see MMT turn out the way it has. Politically, ideologically, Marxist driven, where ‘description’ has turned economically incoherent ‘prescription’ voodoo economics. Which is why PUREMMT was created. To save MMT from MMT! Time is ticking.
So Turkish Lira hyperinflating due to higher rates??