Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "The national debt need never be repaid" video.

  1. There are two types of theories: 1. Theories that describe what is as factual maps of reality (facts) and 2. Theories that prescribe what should be as ideological arguments in frameworks (beliefs). MMT is a descriptive theory and not a prescriptive theory like Keynesian Monetary Economics. MMT and Keynesian Monetary Theory share only the description of how the government can issue its own currency at will, and how the level of taxation relative to government spending is a policy tool that regulates unemployment and inflation. After that, they disagree on how these powers should be used. Keynesian Monetary Theory argues that government money creation should only be used as a temporary fix to address acute unemployment and underinvestment in infrastructure, and predicts that there will be inflation problems if carried on for too long. In contrast, MMT argues that Keynesian Monetary Theory ignores the role taxation plays in controlling the money supply and curtailing inflation. Therefore, government money creation can be used for acute and chronic underinvestment in the economy as long as taxation is employed to remove excess money from the economy when inflation occurs. In short, Keynesian Monetary Theory ignores taxation as a monetary policy tool, while MMT does not, and argues that it can be used in a targeted manner to control the money supply and prevent chronic inflation. So, your critique ignores the following: a. MMT ≠ Keynesian Monetary Theory b. MMT is more accurate in its descriptive map of what monetary tools are available to the government than Keynesian Monetary Theory. c. Describing What is ≠ arguments about what should be. d. We already have empirical evidence of the impact of government money creation during times of underinvestment, and the impact of taxation. We have: - historical accounts of how the UK handled the financing of wars and pandemics, what tools were used, and the results. - data from other countries since the post-WWII period of economic performance regarding GDP per capita, inflation, and levels of taxation. All these are available online, and the data reveals that MMT, as a framework, may have a point. High taxation does not correlate with economic underperformance as expressed by GDP per capita. Indeed, to give a complete picture, it is essential to look beyond simplistic "straw man" arguments and consider the data. And even more importantly, we must have the courage to embrace nuances. Like underinvestment in infrastructure is economic failure, which can lead to unemployment and inflation because of the consequences that follow on from market failure. That more, isn't necessarily better. And excessive speculation, and rentierism has negative consequences for economies, because they divert investment away from the production of goods and services that are needed to maintain a functioning economy that can provude materiall growth for more than a few.
    2
  2. But what you dont acknowledfe is that modern monetary systems are no longer solely run by government, because instead of national financial systems, weve been encourage to allow evolving away from that to a global financial system which produced the largest amount of money - bank credit - on behalf of sovereign states, multinational corporations, and financial institutions. The financial institutions need to be paid for creating this source of the cheapest capital on the planet for investors. So, the UK falling down the rabbit hole because of Brexit explains the disparity. And those cause the problem have used their money to buttress their power. I mean, even the US got downgraded in 2022. So, trust is the basis of money as credit, and everyibe relies on it. And you should have provided the debt to GDP percentage and data about the US to provide some sort of benchmarking. Murphy knows how sovereign debt is used, snd he can caluate the analysis better than you or I. For instance, Germany has a low interest rate, but the differential between that abd the UK's doesn't correlate with their Debt to GDP ratios. Interest rates are subjective judgments on a debtor's riskiness, not on what they owe. I mean, Trump went bankrupt 5 times, but still got banks to lend to him. It was only after he screwed over Deutsche Bank, did that flow of cash dry up... Subjectively Trump was a risk, but it wasn't until it became a consensus in the banking industry, was the decision not to borrow to him an objective one. The same applies to yield rates for sovereign debt. But what's more important than individual rates, is yields relative to one's competition. And wirh Trump taking the presidency, alk bets are off. Why? His economic plan to reindustrialise the US won't boost the US' credit rating, because it's the consumer - who's already punch drunk - who will bear the costs in very direct ways. Americans will be living in very interesting times for the next 4 years,as will we as we all share the same broken global financial system.
    1