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Saturday Quiz – May 23, 2015

Welcome to the Billy Blog Saturday Quiz. The quiz tests whether you have been paying attention over the last seven days. See how you go with the following questions. Your results are only known to you and no records are retained.

1. In general, the OECD and IMF estimates of the impact of the automatic stabilisers attached to the fiscal balance are biased downwards.

2. If there is an external deficit, efforts by the private domestic sector to increase its overall saving as a percentage of GDP, will ensure the government fiscal balance is in deficit, irrespective of what the government desires.

3. When a government runs a continuous fiscal deficit, the public spending builds up over time and may eventually exposes the economy to inflation risk.

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    This Post Has 4 Comments
    1. Learning these economic facts has been a breathe of fresh air for me. I feel like a weight has been lifted off my shoulders. I think it is because I see things more clearly now. In every sense of the word.

      Sometimes I do think many of you give too much credit to current economists who are in control and politicians. Some call them stupid and idiots. I don’t think they are. I think the central banks know fine well how money is created within the system and choose to lie and deceive instead for ideological reasons. I think it is the biggest con trick ever played on humanity instead of stupidity.

      This learning also got me thinking about PFI inititives. Those private finance inititives where billions upon billions were spent on schools and hospitals, yet no taxes went up and none caused inflation.

      I think if the truth was known how those PFI billions were first created and then spent then the central banks and treasury games would be up. I think they funded those billions of PFI spending exactly like MMT theorists would have or very similar.

      To me it was like QE for hospitals and schools but instead of telling the truth. They used smoke and mirrors to hide the truth and use words like off balance sheet costs in a murky underworld. Imaginary accounts that nobody will ever get to see.

      Thanks Bill.

      You’ve no idea the difference this learning has made to me. Especially every time I read a newspaper or watch news on the TV. It cuts right through the fog of war.

      I just wish I knew how to translate this new knowledge into making a few quid from the sheep in the markets to escape this madness. Every spare penny I had would go right back into supporting the truth and bring about the downfall of these slave masters.

    2. Derek,

      I have recently had my consciousness raised also and now I question the orthodoxy where I can, though I am still coming to grips with MMT. I am unsure how much of the prevailing economic paradigm is the result of clinging to outdated conceptions and how much is deliberate deception.

    3. Cheers Bob

      I’ll take a look.

      What do you guys think of the PFI inititives ?

      The more I think about them the more I think about it as QE for the people.

      After all when you look at the UK’s debt to GDP ratio over that period it never moved, taxes didn’t go up and there was no inflation.

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