World News

37380 readers

3175 users here now

A community for discussing events around the World

Rules:

Rule 1: posts have the following requirements:
- Post news articles only
- Video links are NOT articles and will be removed.
- Title must match the article headline
- Not United States Internal News
- Recent (Past 30 Days)
- Screenshots/links to other social media sites (Twitter/X/Facebook/Youtube/reddit, etc.) are explicitly forbidden, as are link shorteners.
Rule 2: Do not copy the entire article into your post. The key points in 1-2 paragraphs is allowed (even encouraged!), but large segments of articles posted in the body will result in the post being removed. If you have to stop and think "Is this fair use?", it probably isn't. Archive links, especially the ones created on link submission, are absolutely allowed but those that avoid paywalls are not.
Rule 3: Opinions articles, or Articles based on misinformation/propaganda may be removed. Sources that have a Low or Very Low factual reporting rating or MBFC Credibility Rating may be removed.
Rule 4: Posts or comments that are homophobic, transphobic, racist, sexist, anti-religious, or ableist will be removed. “Ironic” prejudice is just prejudiced.
Posts and comments must abide by the lemmy.world terms of service UPDATED AS OF 10/19
Rule 5: Keep it civil. It's OK to say the subject of an article is behaving like a (pejorative, pejorative). It's NOT OK to say another USER is (pejorative). Strong language is fine, just not directed at other members. Engage in good-faith and with respect!
Rule 6: Memes, spam, other low effort posting, reposts, misinformation, advocating violence, off-topic, trolling, offensive, regarding the moderators or meta in content may be removed at any time.
Rule 7: We didn't USED to need a rule about how many posts one could make in a day, then someone posted NINETEEN articles in a single day. Not comments, FULL ARTICLES. If you're posting more than say, 10 or so, consider going outside and touching grass. We reserve the right to limit over-posting so a single user does not dominate the front page.

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.

Lemmy World Partners

News [email protected]

Politics [email protected]

World Politics [email protected]

Recommendations

How to spot Misinformation and Propaganda

For Firefox users, there is media bias / propaganda / fact check plugin.

https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/

Consider including the article’s mediabiasfactcheck.com/ link

founded 1 year ago

MODERATORS

236

Argentina elects 'shock therapy' libertarian Javier Milei as president (www.reuters.com)

submitted 7 months ago by [email protected] to c/world

74 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 2 points 7 months ago (1 children)

You might be confusing debt issuance with money issuance.

Nope. Let me quote Joeri from his second video (19 minutes in):

Let's tackle the one that the internet loves the most first: money printing. To view money printing as the source of all price inflation actually has a very long tradition in economics. The most prominent economist to support this idea was Nobel prize winner Milton Friedman (11:49) who said that. [...]

Crucially, Friedman inspired economists often assume that velocity and production are roughly constant. Remember that clip from Peter Schiff arguing that stimulus checks for people at home would be inflationary? Crucially, he made the implicit assumption there that this didn't prevent a further collapse of production.

"Everything is getting more expensive. And if people think that is transitory, it is because they don't understand the problem. In fact, they don't even understand inflation or where it comes from because inflation is about money. You are inflating the money supply. That's what's being expanded and none of this is transitory because these deficits aren't transitory. The money printing isn't transitory. It's here to stay. — and that means prices are going to continue to go up because we continue to destroy the value of the dollar as we expand the supply"

Sounds pretty convincing right? However, the monetary theory of inflation has almost completely disappeared from universities. Why? Well, because the data doesn't support this simple explanation in most economies. For example, check out this graph of the CPI for Europe and compare it to the graph of central bank printed M1 money supply... You can clearly see that the money supply has accelerated while price growth has slowed. To a less extend this disconnect also exists for the USA. But, if you really want to see this simple theory fail, you only need to look at Japan. Even if we take into account the more expansive M3 money supply measure, which include money created by private banks, and compare it to the CPI. You can clearly see that while M3 kept going up, the CPI had its ups and downs. What can explain this disconnect?

[–] cyd 3 points 7 months ago

Pointing to Japanese money supply versus inflation is irrelevant because Japan doesn't fund its fiscal deficit via monetization. It issues debt, just like every other non-basket case economy on Earth.

The distinction is important. Debt is tied to a promise to repay later. Monetization has no such promise, so it's functionally equivalent to issuing debt and then immediately defaulting. So long as lenders believe debt will be repaid, the effects are different from monetization.