Stephanie Kelton - The Economic Movement of Bernie Sanders
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- Опубліковано 17 жов 2016
- Professor Stephanie Kelton served as the economic advisor of Senator Bernie Sanders during the USA presidential campaign.
Interviewers; Jochem Jordaan & Elias Asselbergs
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What a wonderful and important conversation with Stephanie.
Does anyone know if there are forums where MMT is regularly discussed? I'm learning about MMT but have many questions I'd like to ask to those who understand it better.
stilldunnowho check on Reddit
neweconomicperspectives.org billyblog these are the main ones and will no doubt lead you to lots of other blogs. on here, valuable sources of info are to be found on the channels of alberto veronese (lots of vids of about a minute's duration which make the point simply) and mike norman. also watch 'soft currency economics by warren mosler' (27mins)
Check out Real Progressives on FB.
This interview focuses 80% on question you can research with no further depth behind.
Every American voter needs to learn the basics of the federal monetary system so that they can understand that their federal taxes don't fund spending.
True
1:00:27 smart man
If we never paid it off, we still have debt from the revolutionary war.
Print a bunch of money and you get inflation maybe even hyperinflation especially if most of the output stays the same. Right now we are experiencing supply shock and how do you bolster the demand side when millions of people are under shelter in place and social distancing orders? I would think a stimulus package would need to pay people’s rent for as long as shelter in place is under effect,1200 dollars won’t pay the rent for one month. If you give airlines billions of dollars that still doesn’t increase the demand for airline tickets people are afraid of being exposed to coronavirus in airline terminals and airplanes so how does that work?
I don't get it. If you run a deficit...at some point you have to pay it off right?
Dollars are created by the US federal government. They can create as many as they want. They create dollars by spending them on the goods from the private sector. Taxation (at the federal level) destroy dollars by removing them from the private sector. By spending more than they tax, the federal government is creating dollars and putting them into circulation. Deficit spending (by the federal government) does not create debt.
So why does the US have debt? Why do we sell treasuries? Because the private sector wants to store dollars somewhere safe, and nowhere is safer than with the creator of dollars. So, the federal debt is really just the savings of the private sector. The federal government can ALWAYS pay back their debt -- WITHOUT raising taxes.
bilbo.economicoutlook.net/blog/?p=34594
Any currency issuing government owns THE SET OF ALL dollars, yen, pounds (whatever the currency). That is an infinite set.
At any given time whatever the total 'debt' of any currency issuing government is that of your currency in circulation held by banks, domestic and foreign currency users. Our savings and ability to spend in that given currency in accounting terms is an 'asset' for us. On the currency issuers side is a 'liability'.
So when you think of debt you're not thinking about it from the point of view as a currency issuer (which is natural because we don't see the world the other way).
"at some point you have to pay it off right" So yes if government has issued a treasury bond (debt) at the point it matures government will draw from its infinite set of dollars to pay it off.
But to entirely remove all its liabilities?
If government were to extinguish all its 'debt' its effectively doing so by withdrawing its currency from circulation. Then of course nobody would have any savings in that currency making it pretty useless. At this point it becomes apparent that your savings are the government issuing liabilities.
Your ability to save, be credit worthy, find a job, pay taxes, have customers walk through the door of your shop with dollars is a cumulative effect of budgets and laws which were flows of government liabilities to its citizens. This has existed in civilization ever since there was a need for a system of credit probably as old as farming on a scale that produced a stock of food. Hence clay tablets in Sumeria (ancient Iraq) are often accounts tracking liabilities and assets of various elements of that civilisation.
but if it cancels the debt all at once that would cause huge inflation in the economy. So everything's value would just reduce.....wouldn't it?
ya we gota pay it off, it's just that no one is asking for it for now.....
The US gov't has had a debt since 1835. When do you think this 'pay off' will happen?
mo money, mo inflation......
more than what?
the only reason her theory of printing more money to reduce debt works is because america has a monopoly over the dollar. Once the other countries catch up, the dollar starts to freefall like a house of cards, infact i wouldn't be surprised if in the near future China deliberately tries to hurt america by competing with it's currency because unlike america they don't have debt..... and if the euro evolves into a stable currency in a few decades america would collapse.....CREDIT- it's all good until you get a call from the collection agency....
one, it's not a theory, it is what happens. When someone redeems a treasury (we reduce fed debt) the gov't credits their bank account with new money.
Yes the US has a monopoly on the US dollar. What does "other countries catch up" mean? The US will always have a monopoly. No one else will create US dollars.
China will not deliberately try to devalue the dollar, even if they could, because of the harm it would do to the Chinese economy (it would cause massive unemployment from reduced exports) and they hold $4 trillion of savings (our 'debt') with which they could buy $4 trillion dollars worth of stuff unless they devalue the currency in which case they could not buy as much. Why would they cheat themselves like that?
China has an enormous amount of debt, however it is denominated in the yuan. How do you think they built all that infrastructure? They do not pay their workers in $, they pay them yuan. They don't publish their numbers and therefore no one freaks out.
The Euro is clinging to life and the ECB has made it obvious that they are unwilling to produce enough euros due to their own deficit phobia.It will not be a reserve currency like the US dollar.
Credit = money. When the 'collection agency' calls it in, the Fed goes ''tap, tap, tap' and the Treasury Notes are now Federal Reserve Notes. So what? It is the same thing that happens when you tell the bank to move your money from a savings account to a checking account. Nothing happens except now you can spend it and you collect no interest.
If China cashed in all their $ savings for $, all they can do with it is spend it on stuff that is for sale in $ which is the stuff we make in the US, which means we will have lots of jobs making stuff, which leads to my original question which you did not answer, more than what?
The correct answer is more than the productive capacity of the US economy, which we are not even close to. mo money, no problem.
www.nationaldebtclocks.org/debtclock/china
Well the ECB isn't a "real" central bank. They cannot perform the same functions that the Fed/US Treasury do. The Eurozone is stuck in a trap of its own design.
Modern Monetary Theory is another terrible idea from the Keynesian economics playbook. There are dire consequences of using this model. This model is based on the US economy's ability to satisfy its needs. All you need do is look at 20 years of the trade deficit to know this assumption is a failure. Secondly, Stephanie needs the US dollar to remain as the reserve currency. Right now, 85% of transactions are in USD. However, this has been eroding and will continue to decline. When other countries see the reckless printing of fiat currency, they will be less likely to commit to USD and will negotiate for their home currency. Thirdly, we have been in a period of high employment, and therefore, there is no spare capacity, evidenced by the high inflation rate. To prevent hyperinflation, the government must shut down many programs for an extended duration. We know that will never happen. Lastly, Stephanie thinks that government bureaucrats can make efficient investment decisions. They have never and will never be able to surpass the hundreds of millions of economic decisions by companies and people in a capitalistic economy. The decision-makers are corrupt individuals ignorant of science and technology. Government mistakes damage society because their decisions are political versus rational, reasoned, and based on objective truths.
Funniest comedy skit I've heard in a long time.
You evidently are too stupid to understand what was said. Either that, or you were high.
Another college professor who discovered money printing as the answer to society's ills. This is getting ridiculous.
Hello! This is how is already works. That's exactly what Congress does-create/print money. Sadly, they are creating it for war, corporate welfare and for elite tax breaks, rather than program a for the people.
Let's see, we have a professor of socialist economics and degreed from all the liberal "right" liberal universities and no doubt a Keynesian rather than an Austrian economist. If you really want to have a balanced event, you might want to invite an Austrian economist and have a debate.
Bernie's "popularity" comes largely from his promises of "free" everything and making the "rich" pay for it! Bernie has never held a private sector job, never opened and owned a successful business. Never employed anyone or had to balance a business budget. So it seems natural that a large percentage of his followers fall exactly in those same lack of individualism, individual effort and fully support the use of government to redistribute wealth. But in this process, the government itself siphons off a large percentage of the "take" in bureautic overhead.
The free trade agreements were foisted upon the U.S. by monopolist capitalists of the CFR and Trilateral Commission and by those involved building a New World Order under and around the United Nations.
Socialism ALWAYS ends up failing because they WILL run out of spending other people's money. When you tax success, you will increase the number of people who decide it's not worth becoming successful! It's human nature and there's no system that will keep drive and achievement high while taxing away the benefits of said success!
Just to think that this woman actually has a PhD... SAD!
and what do you have a PhD in stupid
Must be a Trumpster happy with 1% taking it ALL.
Why are so many Jews supporting MMT, it's just a rehash of Keynesian Nonsense!