People have been asking for a basic guide...
This is pretty good
Just excuse the fact it's made in the US
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Thanks Proff. I’ll be sharing that.
Can I make a suggestion for a UK version if any one can put one together? Seeing as how a snap (yawn is it here yet?) election phony war is well and truly underway.
Apt to the nascent manifesto in that event is how straight the Labour leadership can be with the voters. My suggestion-
‘Govt budget is NOT the same as your household one!
Never has been. We were fooled. Deal with it.’
It’s time to finally dump Maggies big lie.
Everytime some idiot politician, presenter, ‘expert’ or ordinary deluded person uses the ‘balanced’ or ‘magic money tree’ argument – they need to be educated!
A budget, anyone?
Personally I’ve always preferred J D Alt’s video as he suggests what is possible : ‘The Millennials’ Money’ – https://www.youtube.com/watch?v=bHQCjFebIf8.
Regrettably it too emanates from the US but it’s pretty easy to figure out the UK equivalents. Surely it’s long overdue that some adequately funded institution creates a UK equivalent? It wouldn’t cost a fortune.
(Incidentally Richard, re. ‘Time is Pressing’, the makeover suits you 🙂 )
It just needs a budget….
(The film, not the makeover, that is)
Thank you for posting… But, remain unclear, as I always thought if a government creates more currency it will cause a devaluation of that currency, and all that entails in trade with other nations, and therefore inflation…?
Currency has to be created – continually
The job is to ensure that excess currency is not created
And no one will get that right all the time
This is one of many arguments against the Magic money tree and the most obvious. How could a populist Government resist printing. If they print for green energy demands then why not for the NHS? Or education or improve our defences or cave in to Union pressure for public sector pay increases or keep the local library’s open.. the list goes on.
In fact before this all took effect the FX markets would anticipate this and Sterling is through the floor and we import inflation in an instant.
Have you heard of the ballot box?
And you are really totally opposed to democracy, as you imply?
And meeting real need, as is also implicit in your argument?
And no, FX markets would not collapse – because real growth would follow such a policy
But I’d be amused to see all those shorting it lose, badly
OK, so are you saying it means still being fiscally prudent, Richard? I am aware currency is created all the time ( and I find it extraordinary money is always somehow found for armaments and war; and eg for paying off the DUP)…So, eg if money was placed into ‘The Green New Deal’ this would create jobs and extra stimulus to the economy…and this could be deemed part of the MMT way…?
I think if this is so, the way of explaining MMT needs to be clearer than just an animation that shows the government printing money – and it floating out as if we have an unlimited supply…or does it? signed: Confused Ignoramus.
I was not pretending one animation solved all issues
Please read what I have written on the Green New Deal
Thanks Richard
Where do central banks fit in… if at all?
They manage this process for the government using the parameters it sets
Very good, I worked this out a long time ago, what I would like to see is a video showing why the government does not do the things it is capable of doing, why does it not do more to allow job creation why does it not repair and build infrastructure why does it install austerity.
A video showing us why and how this failure takes place would be even better than this video.
Why does a government not do what it is supposed to for the benefit of most of its citizens?
Because the few aristos and bankers TAKE the money. They buy the ministers and civil servants. Who neuter the state agencies from persuing these thieves. That minority of globally propertied peoples don’t want equality they want servants to wait on them and slaves to work their mines. They want the money but don’t want to pay the tax.
There are many sources of information of how the Bankers and Military Industrialists have been running the planet for the last century and more. You don’t need it at this blog.
There is precious little understanding about the money in your hand. Just the big lie that the government is the same as a individual, household or firm.
Chicken little sky falling and crying wolf fairy tales – to frighten us voters from choosing a government that tells the aristos, bankers and military industrialists to shut up and pay up their well over due taxes – won’t work anymore.
Rose Douglas says:
February 7 2019 at 6:57 am
Thank you for posting… But, remain unclear, as I always thought if a government creates more currency it will cause a devaluation of that currency, and all that entails in trade with other nations, and therefore inflation…?
Ă‚ÂŁ435Bn worth of QE didn’t do it. A vote in 2016 managed it though.
Hi Richard,
It is difficult for the public to appreciate the amount of knowledge and experience academic accountants and economists have. I have slowly been learning by following the blogs and articles. My advice for fellow novices is to not argue or criticise (being a troll) until they have learnt sufficient facts from the experts as it leads to meaningless conversations and sometimes abuse online.
I appreciate the work you and other experts are doing and the information you send out. Without which, we, the public, would be completely ignorant and at the mercy of similarly ignorant politicians and their hidden agendas. Ron
Thanks
Try watching our film which we think lays it all out . It’s had 5300 views on You Tube .
https://www.youtube.com/watch?v=1FglZyBcFyQ&t=267s
It’s good
Thank you
That video is brilliant. Always recommend it.
Yet the attacks grow daily on MMT in the UK. Otherwise all round good guys, such as Ann Pettifor, just can’t help themselves snipe against MMT from the sidelines all the while attacking the one progressive chance we have to finance a GND.
The latest tweet I saw this morning from Prof. John Weeks…
“MMT is a clever contemporary way to peddle quite old fashioned rubbish that goes back to banking/currency debates of early 19th century ”
Wish John had a clue there’s nothing ‘contemporary’ about MMT. Its only been this way for about 6,000 years – all he has to do is ask any anthropologist e.g. David Graeber…
“money does not emerge from barter-based economic activities, but rather from the sovereign’s desire to organize economic activity. The state issues currency and then imposes taxes. Because citizens are forced to use the state’s currency to pay their taxes, they can trust that the currency will carry value in day-to-day economic activities.”
Jo0hn knows he offends me with this