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

  1. Nonsense. We paid for it by changing the variance allowed in the Contingencies Fund Act. Keep up!
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  2. ​ @CuriousCrow-mp4cx MMT isn't something that's practiced or not practiced, it's a description of how fiat money systems work, particularly govt fiscal ops. Please read the core literature (at the very least) before commenting.
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  3. We don't have to. Bonds are issued ex-post of spending and by political choice. Bonds aren't a funding operation, they are a refinancing operation.
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  4. ​ @adenwellsmith6908  The DMO refinances any govt debt and converts it into a tradeable commodity.
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  5. The UK govt can always meet any bill denominated in £s.
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  6.  @mceajc  We have a currency issuing govt with it's own fiat, floating currency; that means it never faces any purely fiscal constraint, the constraints it faces are availability of resources at a price it's willing to pay and politics. Future pensions aren't difficult to fund, they are funded in the same way as all other govt spending; vis parliamentary authority and HMT instructing the BofE to mark up accounts of recipients. Given the above and the fact that the state pension is a question of how much of current production those under pension age are prepared to give up to those over the pension age (not very much in the UK) how do you see "higher inflation, currency devaluation" in that context?
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  7. @Betweoxwitegan  Take a step back my friend. MMT is a framework for understanding and explaining the capacity of a currency issuing govt with it's own fiat, floating currency. Part of it describes how our fiat money systems have worked since 1971. It's not a policy regime, but it recommends a job guarantee.
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  8. @Betweoxwitegan it's a framework for understanding and explaining the capacity of the currency issuing govt with it's own fiat floating currency. It's only policy recommendation is the JG. "Ability to change economic policy... " etc is policy choice, not MMT
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  9. Not really. Try to think of the "national debt" as the difference between the £s the govt has spent into the economy and the £s it's taken out of the economy via taxes; it's the total £s left in the economy. Banks don't lend out savings. Bank loans create deposits via the act of making loans.
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  10. You could but why would anyone accept your currency and, of course, how would you pay your tax?
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  11. ​ @physiocrat7143 taxpayers can't create £s, only government can.
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  12. The Job Guarantee is fundamental to MMT. If you say it isn't then I'm afraid you simply don't understand what MMT is. That being the case, what you are putting forward here is RMMT - Richard Murphy's M
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  13.  @garethmills105  The statement: "You can tell how much someone understands about MMT by how often they talk about the Job Guarantee (buffer stock employment framework, "superior to using unemployment as a disciplinary force against inflation") and their understanding of it's centrality to the entire framework" ... is a truism. It seems you haven't read any of the core literature or, if you have, you haven't understood it. You refer to MMT as a "theory"; it's no such thing, the descriptive portion is observable fact. Often and mistakenly, MMT is separated into two parts (and the "lens"); the descriptive part (how govt fiscal ops work in fiat, floating currency regimes) & what some mistakenly call the "prescriptive" part (two linked policies, the JG and ZIRP). The descriptive part is correct, the prescriptive part fixes the macro problems. Please, read the core literature. Once you have, you can move on to Bill Mitchell's 3 part series "Exploring the Essence of MMT", the second part of which will help to educate you on the centrality of the JG to MMT.
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  14.  @garethmills105  It's absolutely correct. The statement "You tell how much someone understands MMT by how much they talk about the JG (buffer stock employment framework)and it's centrality to the framework." is a truism. Often, and mistakenly (I suppose for simplicity), MMT is separated into two parts (without mentioning the "lens"); the descriptive part and the prescriptive part. The descriptive part is not theoretical, it's observable fact so why are you referring to "the theory"? The descriptive part explains how govt fiscal ops work in a fiat, floating currency regime; the prescriptive part explains the two mandatory policies, the JG and ZIRP. The prescriptive part is absolutely core to the entire framework.
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  15.  @garethmills105  you are doing exactly as Richard does; you are telling everyone what you think MMT is, not what it actually is. See the truism I posted earlier. It's simple, if you don't understand the centrality of the JG to MMT then you simply don't understand MMT 🤷
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  16. The last DMO auction was oversubscribed by a factor of 2.75.
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  17. The private sector does want them. The last Gilts auction was oversubscribed by a factor of 2.75.
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  18. The so-called "national debt" is simply the difference between the £s the government has spent and the £s it's taxed back. That's it! The interest payments don't and can't ever leave the Sterling Area.
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  19.  @theolddog5129  You are welcome. What do you remain unconvinced about? The digital tokens being given to Chinese companies are the same ones we have, i.e. £s. Greece's problems were wholly caused by the EU and the ECB, Varoufakis book is a good explanation of what happened; Greece should have left the EU, but .... The UK govt doesn't "borrow" from it's own population, it's the sole issuer of the currency (no-one and nothing else is legally allowed to issue the currency). Govt debt held by foreign entities is no more problematic than the £s in your bank account.
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  20.  @paulsoutham2454  Exactly. Tesco don't go to the "Tesco Points vigilantes" and ask if they can borrow some Tesco points when they want to issue more Tesco points, do they.
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  21. Put simply, they are nonsensical ideas which politicians can then use as excuses for why they didn't do anything to benefit the lives of the electorate.
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  22.  @foxmoongaze  you think politicians lying about what is and isn't possible is "playing with word's"? Understanding what MMT actually is leads one to understand the important things are resources and how govt uses them, not £s. In what way do you think confidence in GBP would "plummet", what's the mechanism?
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  23. @foxmoongaze  if govt doesn't continue to create £s and continues to tax at the same rate what do you think happens to the private sector? Please explain what this confidence thing is.
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  24. @foxmoongaze  well, it depends, doesn't it. Why do you suppose people buy Gilts and not stocks and other assets? What's the mechanism for "losing confidence" in a currency?
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  25.  @scroopynooperz9051  Well, QE is an asset swap, that's it.
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  26. It's a myth. The BofE isn't independent in any way.
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  27. Until he later changed his mind.
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  28.  @shauneden4229  which Act is it?
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  29. @shauneden4229  the provisions of the Act look pretty clear cut in terms of ownership, what makes you say it's still a private bank?
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  30. @kiuk_kiks  He has his own version of MMT which isn't MMT. He even suggests the founders of MMT are wrong about MMT!
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  31. A"nything we can actually do, we can afford".
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  32. @alexjeffrey3981 oh, right. The reality is the UK govt is the sole issuer of it's own fiat, floating currency; it can never run out of £s. The TINA, neoliberal narratives and supporters expend every effort to prevent the working class from understanding the above. Recent examples of the capacity of the currency issuing state being revealed are the GFC and COVID but WWI was probably the first.
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  33. ​ @alexjeffrey3981  Oh, right. (my last comment seems to have been deleted, let's see if this gets through) Well, the UK government is the sole issuer (via it's own bank) of it's own fiat, floating currency - the £. It can never run out of £s, it issues them into existence every time it buys something/spends. The cultural hegemony expends every effort to make sure the above information is, at least, obscured and supports and promotes the Thatcherite "there's no such thing as public money, there's only taxpayers money" which is clearly nonsense. Every now and again, normally during a major event like, say, the GFC, COVID, WWI, the state reveals it's currency issuing capacity. Austerity often follows. I hope that makes sense.
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  34.  @alexjeffrey3981  I think a short form comment of mine got through ☝️
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  35.  @gio-oz8gf  it's not. MMT is a description of how fiat money systems work along with two policy proposals. Understanding how fiat money systems work, especially govt fiscal ops, allows one to view policy choices through what's called the MMT "lens".
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  36. @martinaston1715  Taxpayers don't fund government, government funds taxpayers. We have a currency issuing govt with it's own fiat floating currency; that means it's self financing.
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  37.  @JohnPark-xf2gq  the reality is the UK neither has nor doesn't have £s, it issues them into existence every time it needs them. you will have to explain how our currency issuing govt (the only entity legally allowed to issue the currency) will have more £s to spend by taxing the rich...
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  38. She is doing her job properly. Her job is to make sure her corporate masters don't suffer. She has all the power she needs to direct the BofE to do whatever she wants them to do but she wants them to continue using interest rates to try to manage the economy and give state benefits to rich people.
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  39. If you are truly concerned about the "national debt" then you can do your bit to bring it down, send all your net financial assets to HMT.
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  40.  @jeff__w  Sorry, but point 1) above is incorrect. All Eurozone countries have their own Central Bank and can indeed issue Euros.
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  41.  @jeff__w  Sure, probably the best source on the Euro and Eurozone is a man called Dirk Ehnts. He's written extensively on the subjects.
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  42.  @malcolmbarnett8470  taxation performs multiple roles but the primary one is to free up resources for govt to use i.e. drain enough demand in the private sector to free up the resources govt wants to use. For
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  43.  @wsollers1  what, in your opinion, is the split between govt £s and bank credit £s in terms of % and, upon what do you base your assertion?
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  44.  @garethmills105  can you explain why the descriptive part of MMT doesn't describe the reality of govt fiscal ops in a fiat, floating currency regime?
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  45. @sailawayteam  maybe we are talking across each other. I'll try to elaborate. Govt spending and taxation are separate functions and they are not operationally dependent. All govt spending, except that which is saved (somewhere between 10 & 15%) is returned to govt via taxation.
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  46. @garethhumphries4039  Well, the act explicitly states it's not independent in any way. Sorry but MMT isn't just descriptive at all. It is indeed prescriptive in terms of the JG and Zirp or close to. If you don't understand how and why the JG is fundamental to MMT then you don't really understand MMT.
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  47. @sailawayteam  from an MMT perspective all govt spending is just spending, it wouldn't be split between "investment" and other spending. You aren't considering the private sectors desire to save (around 10% or so) so how would you accommodate that?
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  48. @sailawayteam  yes, sort of. An MMT perspective leads one to understand that starting from a number (the budget) is the wrong place to start. And yes, people like to save so, if it's not being spent then it won't attract taxation and return to the issuer. It's the equivalent of leaving money in a drawer or under the bed.
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  49.  @garethhumphries4039  exactly what are neo Keynesian ideas? Again, MMT doesn't describe how our economy works, see my other post regarding this. Have you actually read the core literature?
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  50. @sailawayteam  The fundamentals are correct. That is: Whenever govt buys something/spends, it instructs it's own bank to mark up the reserve accounts at recipients retail banks. The BofE must, by law, comply so it marks up the relevant reserve accounts. The retail banks then mark up the recipients deposit accounts. New £s are created every time.
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