Comments by "" (@blackbulldog4897) on "Richard J Murphy" channel.

  1.  @inthegutterstaringathestars  ok then, here's your chance to show you understand and can explain any of this ... Explain the legislative architecture (the three/four Acts of Parliament) and processes which constitute the system of govt spending (hint: it's nothing to do with any of the things you have referred to previously) and how they fit together. Over to you...
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  2.  @inthegutterstaringathestars  you seem confused about what "permission" is. However, if you want your opinions on a subject to be taken seriously by anyone but yourself then you are going to have to prove you understand and can explain the system under discussion. You never asked me to explain anything at all, you were too busy putting forward your unbacked and completely made up opinions and confused them with an explanation of the realities of our fiat money system and govt fiscal ops. If you don't take the opportunity to demonstrate you understand the subject and can explain it that by doing exactly then means you obviously don't understand and cannot explain. Case closed.
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  3.  @inthegutterstaringathestars  well, you can settle the matter of whether you understand and can explain how govt fiscal ops both at the higher level and on a daily basis (paying pensioners for example) is by explaining how the system works, including the legislative architecture, at those levels. If you don't take the opportunity to demonstrate your understanding then why on earth would anyone take any of your unbacked opinions on the subject seriously. So either ... Over to you to explain or ... It's Case Closed. Narrator: everyone knew it was Case Closed.
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  4.  @inthegutterstaringathestars  any time you can muster the mental and physical resources to be able to explain the simple things you say you understand, please come back and do so. Until then, keep raging with yourself. Bye 👋
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  5. It's naive in the extreme to believe these neoliberal ghouls don't know what they are doing.
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  6.  @WarrenPeaceOG  banks provide liquidity.
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  7.  @anglo-irishbolshevik3425  the primary constraints are inflation (resources being available for govt to use at a price it's willing to pay) and politics.
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  8. MMT reveals that the UK govt can never run out of £s, it's the sole issuer of the currency. Every time govt buys something it issues new £s into existence. Every time it taxes it takes £s out of existence. Why should the above facts have any bearing on currency markets?
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  9.  @baronvontrap3325  these people ☝️ have zero idea how fiat money systems work.
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  10. It's not a stupid question. Firtly, Gilt holders are not "investors" they are simply people who choose to hold govt securities over any other asset (cash, shares etc.) Gilt holders don't set the rates, the DMO does, GEMMS have to buy bonds at issue otherwise they lose their licence. There is a registry of holders it's called CREST.
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  11.  @SlowCarToChina  try to think of things in terms of resources, mainly people. For govt to buy the things it needs, those things need to be available for govt to buy if it wants to avoid inflationary pressure. E.g. if govt wants to create a national council house building program (it doesn't), or employ more teachers, nurses etc given the standard options it always has, how does it go about it?
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  12. Point of order: MMT isn't "applied" or "not applied", it describes how fiat money systems work now, today. The UK govt can never run out of £s, the rest is politics.
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  13.  @NikkisNosh  Yes, a core doctrine of neoliberalism is to prevent the nexus of the currency issuing state and the working class, hence the "no such thing as public money, only taxpayers money" and "we can't afford it" nonsense. As Keynes said, "whatever we can do, we can afford". The UK govt can never run out of £s, it's the self financing currency issuer. It issues them into existence every time it spends. If it issues them, what it issues them for and who benefits are all political choices driven by ideology. The state of the country; NHS, infrastructure, education etc is a direct result of the application of the above ideology.
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  14. There's nothing controversial about the descriptive portion of MMT, it describes how our fiat money system operates now, today.
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  15.  @mikebrough3434  you only have to read a paragraph or two of any of those results to realise they are, at best, strawman arguments and at worst, economically illiterate. What implications do you think the implications are and why do you think they are controversial?
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  16. It does work, in fact it works perfectly but only for those it's intended to work for.
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  17.  @kevinsyd2012  I'd go along with most of that, couple of points though: . "printing money" throws up al the negative framing that gets the hyperinflation hyperventilators all excited . QE isn't "money printing", it's an asset swap, reserves for Gilts. It simply reverses the original transaction which swapped Gilts for reserves . It's a finer point but, Taxation is used to depress demand so the resources govts wants to use are freed up. . Govt deficits aren't necessarily good for the economy; as ever the important questions are who has the and why?
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  18.  @azar1354  the debt you refer to is simply the difference between the number £s the government has injected into the economy buying things/spending and the number of £s it's drained from the economy via taxation; in other words, it's the number of £s in the economy.
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  19. LDI's happened to Liz Truss. To be clear, all government spending is borrowed from it's own bank, the BofE. The process, simplified, works like this: . Parliament authorises spending . HMT instructs the BofE to mark up accounts of recipients . Bof E must, by law, comply so it marks up the reserve accounts of recipients retail banks (retail banks then mark up recipient deposit accounts) and marks down the Consolidated Fund . New £s created every time.
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  20. All of that is incorrect. The bond market has nothing to do with fiscal policy in the UK. By the time HMT securities are issued, the spending has already happened. Gemms are obliged, as part of their licence, to make market in Gilts under all conditions.
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  21.  @coAdjointTom  I'm not sure what you are asking there but, for context, there are a few things to consider about the Truss episode as it provides some valuable insights. . The £ was "plummeting" since Feb 2022 but, oddly, we didn't get the 24/7 breathless coverage we got with the Truss budget, did we. . Truss was cooked, in large part, by the LDI debacle. . She should have sacked Bailey but, of course, she couldn't.
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  22. It's the difference between the number of £s government has injected into the economy via buying things/spending and the number of £s it's drained from the economy via taxation. In other words, it's the amount of £s currently in the economy.
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  23.  @LeslieWatson-t5f  Unemployment is largely a story of government taxing too much for the size of government. There's no real reason we can't have full employment, all that prevents it is political ideology. As for "growth", it depends what "growth" you want and who benefits from it.
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  24. Only if you don't understand what it is.
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  25. QE is an asset swap; Gilts for reserves. It's a reversal of the original transaction which swapped reserves for Gilts.
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  26.  @adenwellsmith6908  Remember, the UK govt can never run out of £s.
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  27. Selling bonds doesn't "raise money". Bonds are sold, by political choice, to drain any excess reserves govt injected earlier.
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  28. Instructing, rather than asking. I agree though, the language used to frame the subject isn't helpful at all. Technically, govt borrows from it's own bank but the negative connotations of the term don't apply to the currency issuer, only the currency users.
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  29.  @garethmills105  Except of course for ZIRP and JG.
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  30.  @garethmills105  which proponents are you referring to? As I said, the JG is core to the framework; without it, it's not MMT. Of course you can disagree, we should have reasonable, informed debate. However, you cannot simply say JG isn't required and still call it MMT. If you do the above you are doing what Richard does; he gives his own version, which is absolutely fine but he shouldn't pitch it as MMT, he should pitch it as RM-MMT (Richard Murphy's version of MMT). There's nothing stopping you doing the same but for clarity you should call it GM-MMT. Btw, have you read the core literature?
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  31.  @garethmills105  Sorry, to be clear, we only disagree on what you should call your opinions; you should call them GM-MMT as they are what you believe MMT to be, not what it actually is. Which parts of MMT do you believe are theoretical?
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  32. It seems you don't understand how the state pension works; it's a case of how much of current production those under a certain age are prepared to give up to those over a certain age.
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  33.  @scottyfive4319  I've no idea what you are trying to say. The reality of the state pension is exactly as I said above.
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  34.  @scottyfive4319  it's not doomed to failure, in fact it's the only way the state pension can work, as a direct transfer from workers to those who are retired. It's always a question of stuff and how much of it those below a certain age are prepared to give up to those over a certain age. It's never anything to do with money and "pots", there's no state pension "pot".
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  35.  @theolddog5129  Tax revenue (from the old Latin/French 'returned') doesn't allow additional people to be employed. Taxation is the drain (the return) of previously issued £s.
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  36.  @theolddog5129  You seem to be labouring under the misapprehension that "taxpayers" somehow create £s which then fund the govt; this is not the reality of the situation, govt funds us, we don't fund govt. Taxes drain previously issued £s, they create the space for govt to spend into.
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  37. @Darren-g6f  what do you mean, growth in what?
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  38. @Darren-g6f  oh right, I understand you. Yeah, most people couldn't give a fig about GDP, could they? It's a meaningless metric to most people.
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  39. The UK government owns the BofE.
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  40. What we refer to as "government debt" is simply the difference between all the £s govt has issued into the economy by buying things and all the £s govt has taken out of the economy via taxation.
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  41.  @danielpye7738  Because it's not about money, it's about stuff people mostly.
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  42.  @rabmcnair4488  Hello rab, try to think of things in a different way; the UK govt neither has nor doesn't have £s, it issues them (brand new £s) into existence via it's own Bank whenever it wants to buy something from the private sector (spending). It can never run out of £s. So, all govt spending is via the creation of new £s, these £s circulate in the economy and they all (except those which are saved) return to the issuer via taxation. QE is an asset swap, Gilts for reserves. IT reverses the original transaction which swapped reserves for Gilts. The money did enter the economy but it primarily went into inflating asset prices.
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  43.  @physiocrat7143  you understand "government debt" is the difference between the £s govt has injected into the economy and the £s it has drained out of the economy (i.e. the £s in the economy, the net financial assets in the private sector) and the only borrowing govt does is via it's own bank, the BofE, yes?
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  44.  @skyblazeeterno  I've no idea why they settle on 25%. However, if you think of the economy in terms of available resources, what could be achieved for the public good with those resources and what those resources are actually being used for you can get an idea of what is being "lost".
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  45.  @skyblazeeterno  You are asking me why the other person said 25% of the economy is "lost"?
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  46. The problem is, prioritising people's needs is, in itself, an ideology.
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  47. ​ @skyblazeeterno £s can never "leave the country", they will always remain in the sterling area. The name tags on the £s may change but the £s can never leave.
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  48. Interest payments on govt debt are a political choice. GEMMS are required to buy all bonds issued. Venezuela <> UK
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  49. What power do you think the IMF has over the UK parliament?
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  50. Please explain how "borrowing" by the currency issuer from it's own bank is problematic in any way.
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