Comments by "Grim Affiliations" (@grimaffiliations3671) on "Economist, Stephanie Kelton, Explains How Spending MORE Is The Solution To Inflation" video.

  1. Do you consider it socialism to have universal healthcare? If so the entire western world is socialist
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  2. It comes from thin air, it is spent into existence. Why would the currency issuer need to collect it from anyone else?
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  3.  @Rob-fx2dw  you are confusing external debt with internal debt. Not all currency issuers are the same. Currency issuing nations with a high degree of monetary sovereignty like the US,Uk,Canada, China, Japan have internal debt, meaning their debt is denominated entirely in their own currency. As such, their debt is sustainable and they can not lose control of their Interest rates. Other countries can be currency issuers too, but they usually have external debt, which means they have their debt denominated in foreign currencies, this means they are fiscally constrained and do not have control of their interest rates. This lack of monetary sovereignty means they have far less control of their fiscal policy. Just look at Japan, theyve been running massive deficits for decades and have the largest debt to gdp ratio in the world, and yet their inflation levels have not been excessive all this time. Because their debt is internal. Secondly, the government is indeed the issuer of the currency. The federal reserve is the fiscal agent of the US government, it derives it’s authority from and answer to the government. Sure the individual reserve banks operate as private banks, but the presidents of those banks join together with the board of governors (who are appointed by the government) to from the FOMC (federal open market committee). This committee is the entity responsible for carrying out monetary and fiscal policy, and it works on behalf of the government to achieve its dual mandate, which is price stability and full employment
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  4.  @Rob-fx2dw  The government does issue the currency, the fed is the fiscal agent of the government. When Congress appropriates new spending, the fed is obligated by law to make those payments
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