Eric Maugendre about carbonOn #tariffs:
"Retaliation by other countries will lead to a fall in US exports. In the 1930s, after the Smoot-Hawley tariffs were imposed, retaliation led to a 33% fall in US exports and spiralling down of international trade […].
"A tariff trade war would hit the US economy harder than Smoot-Hawley, since trade is now three times as big a share of GDP as it was in 1929, and was 75% of GDP in 2024 – versus roughly 6% in 1929."
"Usually when a #recession is in the offing, government bond prices rise as investors look to a ‘safe haven’ from a stock market crash. But this time, bond prices and the dollar rate are also diving – as fears of rising inflation and worries about the security of holding dollar assets take over. The fall in the stock and bond markets are presaging the big fall in production and employment in the US and elsewhere".
https://thenextrecession.wordpress.com/2025/04/09/trumps-slump/ 🧵
"Interest payments in the US are on a path to consume 30% of the federal government’s revenue by 2035, compared with 9% in 2021. But most important, this will also feed through to the interest charged on all borrowing by companies and household mortgages. If businesses can’t get access to credit, that can halt investment and lead to job losses over time. First-time buyers and those wishing to move home could also face higher costs"
https://thenextrecession.wordpress.com/2025/05/25/donald-trumps-big-beautiful-tax-bill/
PitchFork Economics: "Today, each dollar in circulation generates up to 70% less economic activity than it did just ten years ago."
Ann Pettifor: "Where does money come from? Money comes from individuals applying for loans in the first instance; or money originates as credit."
Ann Pettifor: "Money is created by you and me. And we need a bank to help us do that."
#credit #confidence #moneyCreation #activity #business #growth #MMT #banking #monetarySystem #money
Katy Swain@maugendre Ann Pettifor is implacably hostile to MMT. TBH I've never been able to work out what her issue is.
@katyswain
Thank you so much for pointing it out!
Everybody and the rich prefer a good environment; some detest environmentalists.
In the same vein, Ann Pettifor has demonstrated money production and recoils from accepting that money is arbitrary.
I wonder if she cares for status :-)
There, on the contrary, she purpots that money comes from tax-payers (amazingly):
"I want a Labour government to do and to have one thing, one thing only; and that is confidence". https://www.youtube.com/watch?v=Dh8sugU9_4E
