Comments
Transcript
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PKBut the Fed Gov does not issue currency any more. Money is created via balance sheets by any banks. The gov has to borrow money like everyone else. Granted if interest is 0 and they have infinite credit, then practically they can issue money for free.
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IZ🔴More Money Today..... this is the level of "academics", "economists" and "politicians".
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ATIf MMT is your chosen description of the monetary system then it must lead to more and more government because it effectively advocates the destruction of market signals by stating quite correctly that the central bank can target both short and long term interest rates. But if the price of money is determined by the state then the misallocation of resources is guaranteed. This can only result in adverse consequences including misleading prices and wages (market signals). The self fulfilling conclusion of an MMT lens is permanent government intervention, permanent “printing” of currency to cure deficient demand, permanent shrinkage of the private sector and an increase in central planning.
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EROn RV I would have expected an interviewer who would push back and assume a devil’s advocate’s role. This was kind of an ecco chamber conversation and it basically leaves the listener non the wiser. Extraordinary postulates require extraordinary evidence. The interviewer was not looking for such. This was below RV standard.
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TSI respect the argument. It almost sounds like "keep drinking", just be sure to hydrate and stop before you poison. yourself." Inflation is an unavoidable headache and those who have not lived with inflation do not understand the anxiety of getting left behind. in 1981, at 18, I chose to help a neighbor widower trying to live on SS in California once her purchasing power had been inflated away. We noticed she had a lot of cat food tins to throw out but did not have any cats. I can't imagine cat food as a good source of protein. She was too proud to take help but was always willing to share our leftover pizza, pork and beans, and salad. I don't know how her life turned out but there were *many* victims of inflation and were unable to take advantage of Prop 13. Let's no minimize the forest fire that inflation is. It destroys almost everything it touches.
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ATMMT becomes credible when it is embraced by politicians on the right not just by academics on the left. Post Covid deficit spending has become the norm, central banks are effectively monetising the debt and all economic theories are just economic theories.
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PHRegardless of anyone's view of MMT, it is where our public policy is going no matter which party wins in November. Sadly, central planning always fails, and that is the lesson of history Prof. Kelton misses by miles. She's another academic that believes in the four most dangerous English words. - This Time Is Different -
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JTThanks to RealVision for doing interviews like this. Please continue to do interviews with people having extreme ideas across the spectrum (I haven't seen any from the extreme right side of monetary/ economic policy, but you should do those too IMO). However, I just can't. I listened for 19 minutes and I just can't. It's garbage. The whole MMT theory is absolute fetid, empirically impossible, historically disproven garbage. So we print until we get inflation, then our brilliant politicians are going to raise taxes to take away the punch bowl? Right. Garbage. Cow dung. Idiocy. And, very likely, the next set of policy proposals that clueless, serious-faced, absolutely corrupt politicians and central bankers will adopt and implement. Recognize it's foolishness and prepare to exploit it to make obscene amounts of money.
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CGBrilliant. Of course, most people will have to abandon their steriotypic views of MMT, in order to hear her. But for the intellectually flexible and open-minded, this is a great video.
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TNThis is not worth your time
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MWI understand the sentiment of those asking for a little pushback from the interviewer and we will take that into account. I would however like to point out that no one had that problem when Brent Johnson interviewed William White about central banking, or when Jim Grant interviews a fellow gold bug, or when DDB interviews another CB skeptic. If you want more combative interviews, so be it. But this request seems to only come on pieces that don't match up with viewers predilections.
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MVIt’s all fun’n games until someone loses reserve currency status
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LPNow that we have found the Magic Money Tree, next we need to find the honest and self restrained politicians to run the money faucet in a fair and... Oh... Back to the drawing board I guess.
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CPFrom an accouting prespective I can´t see this working in the current framework. Currently the Treasury issues bonds (credit liability side) by selling bonds to private sector lender and/or the Federal Reserve which in turn give it the cash (Treasury debits asset side). When the private sector buys all the bonds, base money remains constant (only shifts from private to government hands). When the FR buys the bonds from private sector, there is an increase in base money since FR increases assets (bonds) and liabilities (bank reserves=cash). If the Treasury can issue currency directly whithout having to issue bonds, would they just debit their TGA on the Fed and credit a liability in the form of reserves (cash held by the banks). This eliminates the need of a Central Bank, right? Apart from the accounting prespective, the MMT approach basically eliminates the already tenous link between actual capital/savings accumulation and the price of capital (interest rates), due to the massive central bank intervention in the credit markets in recent years. This is what I believe is the core issue with the current credit based monetary system. MMT will end once and for all the price signaling mechanism (particularly the price of money/credit = interest rates) that is essential to a funcioning market economy. Malinvestments will keep building, inflation would run out of control and we expect politicians to be abel spot, acknowledge and the resolve this issues.. that will never happen.
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JBInflation is something that has to be defined. Which makes it garbage as a metric. CPI inflation has been low since the GFC yet asset prices have skyrocketed. She does not even come close to providing an argument for how MMT would address asset price inflation. It is sold as a left wing policy, but it’ll end up making the top 0.1% richer at the expense of the middle and lower class.
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HKMMT is a theory that is quite enlightening for an intellectual discussion. Having said that it is not a sustainable policy. US is the only country in the world that is able to practice MMT since USD is the global reserve currency which is protected from being devalued. If US continues to print and give out free money in order to save its own economy while let rest of world suffer, eventually rest of world will come realization and revolt against USD as a global currency. At which time a new global reserve currency (e.g. digital currency) will replace US dollar and MMT will no longer a viable option.
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ZYThe currency issuer...in my mind is bank and Federal Reserve. Can anyone find me an explanation that what Richard werner’s prove is wrong? Or where should i look into.
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MdThese people exhibit a level of confidence in the competence and integrity of human government that defies every lesson of history.
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CPAll I ear is ... goverment can and will fix this.. and that.. and the other.
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JDMMT is pure lunacy. If deficits don't matter then why not cut income and corporate tax rates to a tiny number such as 5%, and then incentivize towards a 0% rate for any person or corporation that creates jobs above a threshold? Seems like capital would be better distributed by non political entities that dont do it for arbitrary or political reasons. When we (or others) turn the printing presses on what stops major exporters like China from banding together and saying "we will take gold backed currency from this bloc, oil backed currency from this bloc, and green monopoly money from a tiny select few we wish to extert control over because we already have enough green monopoly money thanks!"
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WMMeet the next Secretary of the U.S. Treasury! She's very articulate, bright and well-informed and makes a great case for MMT. Who knows...it might even work! I think we'll soon be finding out....
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JEThe elephant in the room is USD reserve status of course... when that goes, then these fantasies will become historical record of another empire’s peak moment of pride.
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DRMMT makes the fed the center of the universe. After we got off the gold standard I have asserted that our currency is supported by our tax paying workers. The trio of globalization, technology, and financial innovation have led to wealth inequality. Instead of just seeing MMT from the lens of only interest rates, unemployment, fiat GDP and mean worker productivity we need to address real GDP, stagflation and wealth inequality and the never ending bubbles created by and only for the benefit of the boomers. At it’s heart, Austrian economics gives immediate pain to current generations for the benefit of future generations. MMT solely benefits the current regime and finances it’s sins by placing the debt on the next generation who need to buy overinflated assets and pay higher taxes, the parting gifts of the too big to fail generation. The solution for EMs, which are totally ignored by MMT, is cheap labor, minimizing the payment of external debt, black market goods and services, and remittances from the export of the working age professionals.
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Jvmake it political and you get a 50/50 outcome ;-) good start i find still, a lot more depth needed for such a gigantic and challenging topic of course, so please bring her back, maybe match her with Richard Werner. Stephanie, the more you share and explain the more your book will be bought, so don't be shy, the topic deserves it ;-)
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SSThis comment is on the interview itself, which was one of the worst I've seen on RV. I feel like I just watched an hour of a six year old and her sycophantic brother screaming "If I ruled the world I'd...". Zero depth. The interviewer's attempts at straw-manning were half-arsed and glibly dismissed by Kelton. This was completely devoid of substance. I actually appreciate RV torturing us with MMT talk. It should be discussed (or is it disgust?), but please if you're going to torture us, have mercy on our intellects and at least make it an honest, mature discussion.
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JVSo governments can spend as much as they want until we see inflation rising above 2%. Does she really believe all these programs are possible without hitting this inflation target in no time? What happens than, abort mission or allow rampant inflation...
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SSMMT places great emphasis on the government's role, such as keeping everyone employed. Giving politicians more power is bad for the country, good for politicians, especially the most corrupt ones. Does Kelton think that the national debt can grow without limit, as long as inflation is not triggered? Lacy Hunt makes a very persuasive case that as debt grows, it reduces GDP growth (he references work by other economists, such as Rogoff and Reinhart). So debt does matter greatly, even if inflation is not yet triggered. Too bad there was no discussion of the multiplier for government spending, and the ultimate impact of deficits on the economy. I would also like to know what SK thinks are the key goals for economic policy.
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JRI believe there are two aspects of the MMT movement that are purposefully conflated so I want to articulate my view of them here to make the distinction: 1. MMT is an accounting framework used to understand how governments can finance themselves – which is worthy of consideration as well as critique. 2. MMT is a glamorous new package for the same altruistic moral framework to justify more government intervention in the economy and our lives. The first says the technical constraints for government spending, and hence government intervention in the economy are misplaced or misguided. The second says: therefore, let’s undertake government boondoggles and make-work projects to put “idle resources” to work, because “slack.” It says people are suffering and we are the moral heroes who can rescue them with our expertise. You have no control over your own destiny, mommy government is here. Even though we've been spending on such programmes for generations, especially since FDR, our programmes will get spending just right to completely overhaul the economy. Never mind the small number of individual freedoms we have to step on in the process.
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WDcan we get the balance of the discussion from the Rickards Interview please??
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CBThanks to RV for this interview as I knew little about MMT so was eye opening for me. I think it was Howard Marks who asked the question: “If we gave every American $1M or $300T ($1M * 300M = $300T) would that be inflationary?” The answer is probably “yes”. So far $2T to $3T is not. So, I would expect the next administration regardless of the party to increase spending DRAMATICALLY (because they can) until higher inflation kicks in. Ladies and gentlemen, prepare your portfolios…
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VUA lot people here seem to be against MMT. It seems they came in with their minds made up about MMT even before watching the video. I'm starting to think most against MMT are here just to flood the comments section with their emotional anti-MMT propaganda.
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MSMMT has gotten it right for a decade and Austrian ecobomics has been wrong for a decade. If Bernanke didnt raise rates and instead did QE in 2006 and moneyized all the toxic assets the housing bubble wouldnt have popped and no recession. Government defecit = private sector surplus = more money for people and higher stock market.
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RKOh MMT...!!!- It's a good idea if you could implement it with perfection. But the issue is you cannot do those social experiment against the NATURE (human).
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MSAustrian economics told you to buy junior miners and gold at $1,900/oz in 2011 and that it would cost you $1,000 to fill up a tabk of gas and hyperinflation. MMT told you QE isnt CPI inflationary and that we would see asset price inflation. MMT is how the world works and investors need to embrace it.
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PJThanks RV for bringing, but to be honest I am not sure I learnt very much on what the problems are to be solved. It’s seems to be another economist coming with more band aids solutions (gaming the system) while not understanding the complexity of the system. Economies need less not more intervention. If governments want to do things, then use taxes not borrowing and stealing tactics.
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HFThe fact that Stephanie Kelton is on Real Vision it shows that the product has declined in quality significantly. She is antichrist of capitalism. Shame on Real Vision
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KPThe only question I would ask is what empiric evidence is there for any of these policies being effective at any level? It is not a Theory more like a Wishlist with hand waving explanations.
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PUStephanie Kelton sounds like (and dresses like) Elizabeth Holmes (CEO of Theranos). Elizabeth Holmes was completely discredited but not before bamboozling very smart people to part with hundreds of millions of dollars.
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DLGreat interviewer, respectfully challenged Steph. RV is getting better and better at doing the multi-perspective interviews, thank you for improving! I can only imagine this functioning in world where humans function rationally, for the greater good of all, using critical thinking and data to make choices, while having a flexible belief system that changes and grows as things evolve. All this to say, that wont happen. We will fuck things up, greed, bias, ignorance, arrogance, a rigid belief system, sense of superiority, the pursuit of pleasure and aversion to displeasure, seeking approval of others, fear, all sorts of things will make it so that the system that allows unlimited power (printing) will not be used efficiently or effectively towards its intended goal (equality and freedom).
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RKComplete and utter BS, that's MMT. If you disincentivize productive portions of the economy, you will get exactly what you incentivized, non productivity. Heck, at least it solves immigration issue, in fact some will be rushing out, as fast as possible..
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XMThe problem i have with MMT or Chartalism is that they ignore the mechanics of money creation. We have a debt based monetary system which is inherently deflationary, not enough money to service debt due to interest payments, and it has the appearance that government debt is private savings. That saving will be sucked out of the private sector to service the debt in the future and that's why we do not have hyperinflation, and thus we have debt deflation when our economic system shut down like this. The Fed can only LEND, not print which means it is inflationary short term and deflationary long term if the system does not circulate. Eventually our debt will out grow our ability to service it then we will need true MMT which means we merge FED and Treasure liabilities. After you merge their liabilities which removes the constraint mechanism then the Fed will just pay our bills and print money and causes our currency to be worthless. The money created today is not backed by nothing, it is backed by our future productivity and when you leverage it to the extremes then it eventually becomes worthless. No such thing as a free lunch.
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LHWow. I came in open minded. This was a conversation with little clarity, to be polite. Wow. Are these people not vey intelligent, or are they simply bought?
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TGMMT can buzz off - what is so bad about deflation brought about by technological supply side improvements?
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BPI wonder if this lady has ever traded financial markets.....I don't think so.
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RWre DIOGO's comment below the vast majority of people do not understand how money is created in a modern economy. It is created by banks making loans. The double entry in the bank's accounting system is basically very simple: Dr "name of person loan account" - this is the bank's asset Cr Loans made account - this is the bank's matching liability et voila, money is created
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SNVery confusing interview. Most of the multiple ideas that are presented are discussed only briefly. It seems like MMT is nothing more than an engineered economy. But we had a very bad experience with such ideas.
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msI don't know how to solve the current crisis. But, more and more I think MMT is a viable solution, because are there any other options?
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BSTo anyone who is a trader, or aspiring trader-- Forget about how you feel regarding MMT. It won't make you any money. You make money by looking at things as they are, not how you want them to be. In the US, some form of MMT is clearly coming, we just don't know when. Pay attention, dispassionately, to the MMT discussion / popularity so you remain alert to opportunities. Prepare by mapping out what strategies you would run and what you would not run. If you are not a trader or aspiring trader, then carry on. You can afford to get worked up either for or against the issue.
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TBStalin and Mao would be proud of this moron. Capitalism bad communism good...blah blah blah. Real vision is better than this crap
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MRThis was Sophomoric. Trying to spin a political narrative into a fiscal solution. Donald Trump just gave you MMT with $600.00 extra per week of unemployment and the result is people would rather stay home than go back to their job. EPIC FAIL. You are talking to people who are financial professionals and high net worth investors, we don’t care who the president is so cut the crap, your dismissal of the bond market was laughable. DEBT MATTERS, our relative low debt in the 70’s allowed Paul Volker to raise interest rates. We don’t have that option available today because of the massive amount of gov./Corp. & personal debt. What a joke!
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NSMwoarrrrr brrrrrrrr! Genius strategy
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PUeconomic heretic
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SGSo if they are the currency issuers and we are the helpless currency users and by drawing this "sand in the line" between government and the household, aren't we by definition putting governments above the law and giving them limitless power over us?
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SBGreat interview. If politicians have run large deficits in the past, they will find it very difficult to cut back once inflation rises. Where would they cut? Health? Welfare? Education? There would also be a drive to understate inflation so that politicians could keep spending.
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JCRV, great interview. Challenging content from the best minds in the world is what makes RV such an incredible value. MMT is so seductive and seemingly, based on the last 10 years, entirely correct. It is only recently that we have seen the problem with MMT which is that the limit of MMT is not inflation, it's pitchforks. No matter how you slice it, there are winners and losers when you create money from thin air. Eventually, this accrual of unearned benefits leads to animosity among the have nots and the result is electing a man like Trump to be president or burning down the neighborhood and wanting to destroy the history of the country. People don't understand how they are being shafted, only that they are.
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kmOMG, Local jurisdictions, states printing currency. Where do these people come from, why do we let them anywhere near our children.
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BSPushing MMT and hollowing out of industrial base is a threat to national security. Stephanie Kelton is living in lala land. Appreciate listening to her perspective, thanks for bringing this to RV. Totally disagree with a ton of her assumptions... But I'm glad I listened...
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BSTo say the US Gov is the sole issuer or currency is a misnomer... It doesn't create a distinction between M1 and M2... The private sector does create M2 in the form of credit expansion...
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PVFascinating and really glad RV bring such a wide variety of opinions. On a very basic level, the problem w/prof Kelton and MMT is the dogmatic faith in government, hence the belief that "unrestrained" money is good for the commonwealth. Sadly history shows that such blind faith is unwarranted and that, to put it like F.Hayek, “The root and source of all monetary evil is the government's monopoly on money.”
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APSo, if I understand correctly, the idea is to transfer the decision-making of dollar distribution from banks to local bureaucrats. I've seen my local bureaucrats... I'll (sadly) stick with the bankers. Eeeesh.
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KMI understand that MMT proposes an opposite system to the historical norm. Previously a carpenter would sell a non-scarce item such as a self produced table for a scarce item such as gold (hard money) now the government sells a non-scarce item thats the free money printed in unlimited amounts for a hard commodity such as a tabel which has now become scarce domestically due to production being offshored. And now one can easily argue that imports are good as you get to use the table which you have lost the ability to produce yourself.
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CMStephanie admits that the Federal Reserve cannot model inflation targets, but at the same time argues for a monetary policy (MMT) that is only constrained by inflation and resources. How can the system maintain equilibrium without understanding the former? Hyper inflation seems inevitable.
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ELIn the end, MMT is a man-in-the-middle attack on wealth. An individual exchanges money for a good or service, or such a service or good is exchanged for money. Now what MMT does, it gets into all these transactions of our economy. By constantly raising the quantity of money, MMT tilts the exchange rate of money for goods and services every so little to your disfavor, slightly depriving you of a fraction of your wealth each and every time you use their money.
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KKfaulty
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FMI don’t subscribe to what she preaches but it is very relevant for me to better understand different theories and opinions, in particular one (MMT) that is being adopted more and more around the world.
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PWThis is a fantastic interview. Thanks for trying to hear different opinions out. Cheers!
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ASIf you’re going to be for MMT, might as well be full on UBI. That way, everyone gets enough to not live in a tent beneath the overpass. Those who want nicer things will still be incentivized to work. Our current unemployment benefits disincentivize workers in lower wage positions. Additionally, the idea of a socialized “worker pool” from which private sector businesses would pull from as needed seems to marginalize and stigmatize those workers unfortunate enough to be in that pool. I see both UBI and MMT gaining traction. Meanwhile, I buy gold and bitcoin ;)
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TBIt's nice that more and more people are learning about these things and how bad MMT is for them.
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RDOne of the many reasons to be very long Gold!
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WSRemarkable. The only thing holding back MMT’s inevitable triumph is Jared Kushner. Peer review that comment Professor.
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CN@Realvisiom, You're presenting an MMT debate among two MMT proponents. This is not very respectful of your subscribers' time. I'm all in favour of giving Stephanie Kelton a platform, but not without a critical interviewer.
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JFI so appreciate this interview on RV where balanced perspectives are welcomed and scrutinized. I also appreciate Stephanie for sticking her neck out to venture into the lions den here. Marshall is a fine interviewer - good choice. With every real question I kept hoping for something of real substance to be delivered as a response, something that I could think about and chew on, but nothing came. Milk toast answers at best that didn’t carry any weight at least to convince me there was something to MMT worth considering for the country’s future. So I went back and listened to Stephanie’s answers again and again yet the academics of her discourse only suffocated the conversation as a whole. I’m impressed she could stuff the pages between the front and back covers just to satisfy her academic requirement to “publish or parish”. A coloring book on MMT would probably have done the same. Hmmmm - Not a bad idea...
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mfI happened to look up where the majority of rubber was produced, 90% in southeast asia. Great interview RV, after listening to this I can dismiss any advocate for MMT without a thought.
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pdthank you for putting this interview up on RV - its good to hear what academics actually think. my grandmother said" if you cannot say anything nice - dont say anything." .so words chosen carefully - how did the world come to this?
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JCDear RVTV viewers - please take MMT seriously. It is only going to increase in political significance. Put yourself in the shoes of a politician in any given western democracy. You are presented with an 'Economic Theory' that has plenty of PhDs behind it that outlines: a) Government Deficits are merely expansions of the private sector and therefore good. b) Trade deficits are our country getting the better deal vs say China and therefore good. c) GJ's give folks a sense of purpose and security without the inconvenience of market dynamics. d) UBI is strictly only for those who don't fancy work of any form. It's a slam dunk vote winner and if you don't run with it the other guy will.
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JGMay I suggest the book for these two. The Road to Serfdom by Hayek
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GBIf my son spun this type of logic I'd send him to his room without dinner. Mind you he might qualify for a federal job for staying in his room. The logic is insane, and a clear flag that the end of this monetary paradigm is fast approaching.
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RGThree major problems with MMT; 1) its administered by beurocrats who will always be way out of touch with what services that are required at the local level, hence the wastage will be immense, 2) the minimum amount of UBI will become a polital tool for buying votes and 3) it assumes you can print enogh of your currency to fund it all. That's fine if you're the US, what about those countries without a reserve currency? Not an option I guess. I don;t buy your argument.
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MMI don't understand how MMT theorists think it would be simple to center spending around inflation. Inflation targets would be extremely difficult to forecast/control, and present a high risk of runaway. I also enjoyed the solution to runaway housing prices (due to artificial control of interest rates), being more controls :) I will say though, that in a world already full of heavy market control... MMT actually does seem a bit more rational...
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NATypical academics all theory, never done an honest day's work in the real economy to truly understand. Tell you what Prof, print more money and pay my TAXES, then you are onto something.
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DOA lot of what professor Kelton is saying makes sense. HOWEVER, one MUST combine it with professor Richard Werner and Steve Keen. Professor Kelton, she thinks the Government creates 100% of the money supply. It is the BANKS, through loans that do 97% of that job. Without bringing in Werner's Disagregation of Credit (wich is the real money creation), one cannot make sense of Kelton's ideas, also SHE cannot fully comprehend what must be done to change these system. MMT + WERNER + Steve KEEN = NEW PARADIGM IN ECONOMICS
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CWWouldn't addressing inflation with precision through targeted taxation require an accurate means of identifying and measuring the degree of that inflation and then having the political means of agreeing on a course of action? It seems that a more general taxation would be applied which would benefit those with the greater influence thus unfortunately further increasing the wealth divide. Certainly the recent examples of expending the money supply has not worked for the majority.
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DAInteresting discussion... one point struck me as odd, however. Paraphrasing...A government deficit of 10 is a surplus somewhere else in the global economy. As an American, this ‘somewhere’ is critically important.
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GSThis monetary theory starts with political objectives and then searches for monetary policies to support them. Unfortunately the Fed & Treasury are now working in unison so it is only a matter of time until we have full blown MMT but it will take a political majority in all 3 branches to redo the current legal landscape around the Fed. They’ll need to officially merge to get as proactive as Prof. Kelton wants to get. I think it’ll work until it doesn’t. Maintaining reserve currency status will be key. This is key to the Green New Deal & UBI or work guarantee. Incredible how people are cheering on big government. I understand big business has failed us but man, people really value security these days more than freedom. I hope I live long enough to see big government fail and people actually yearn for freedom and independence.
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DHReally wish this was a more adversarial interview! The interviewee should have to defend their ideas—especially ones as controversial as this I can think of several notable economists that would do a fine job of being tough but fair as the interviewer.
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arFair enough. Now interview Bob Murphy for the counter-perspective.
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MHYou can't print wealth. Wealth belongs with those that can generated more wealth to the benefit of all. MMT basically steals from those that can generate wealth and gives to those that can't. Government distorts all it touches. Fastest way to destroy a nation. These people are stupid in the way that only academics can manage.
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DSIt would be much better to just say we need to print a lot of fiat money because the US must open the economy and most governments, corporations and people were stupid. They did saved for any white swan events much less black swan events. While printing all this money, we need to lay out a plan to encourage more resiliency in governments, corporations and citizens. By couching MMT as a new theory we deceive ourselves while shooting ourselves in the foot. It is just printing money to pay for "things." That is nothing new. It has been going on since the barter system started to accept shiny things for exchange. I am sorry, the US dollar is not very shiny. Gold is shiny. DLS
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NSGreat overview of MMT on a conceptual level, in a very articulate way. Thanks RV & Prof. Kelton. For a next time, please consider a format of a debate between an Austrian economist & MMT'er..
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DBSo why do we have to pay taxes? Can't the government just "create" my tax liability for me?
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DLI have got the book but yet to read it so it may go into more detail. I found this argument more about politics. There wasn't much about how this monetary system would actually work, like what money represents. I think most people know intuitively that the paper and ink isn't valuable, it's what you gave up to get it and what you can get in return for it. There was the one comment that "we don't need to borrow from anyone" that I thought was a bit scary. To me that implies that the paper and ink itself is valuable so can just be printed to pay for things.
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NvThis is essentially a defense of MMT. Yet Stephanie fails to follow her own rule: "first define the problem."
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MTin advance this post will be of zero interest to anyone else on the RV forum, the only value is to myself personally in that I need to make a public confession........ I do not have sufficient emotional or intellectual maturity to offer a valid critique of Professor Keltons ideas. I've tried twice to get through her book and failed on each occasion. I intend to try again to complete but right now I am Profoundly disturbed and need to lie down for a while and calm down.
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PTHer case for MMT is bankrupt of basic economic principles. At least both interviewer & interviewee stated how corrupt the Trump administration is, so we know their bent. More government control of our economy will fix things until control can be handed back to the private sector (when has that ever happened?). This is a great prompter for buying gold. Gold investors should load up on more gold and then fund a book tour for Kelton. Sad for the country - more dependency that won't end well.
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DRThis is why US stocks and others are getting crushed by gold. The US dollar, already the world's weakest major currnency, has nowhere to go but zero. Imagine the riots in the streets as that happens! Pity anyone living there.