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

  1. @CuriousCrow-mp4cx  well, he's laying out the fundamentals of govt fiscal ops in the UK.
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  2. How do you think government "creates increased money"?
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  3.  @LurchLures  The relation between inflation and money growth for low-inflation countries (on average less than 10% per year over 30 years) is weak, if not absent” (De Grauwe and Polan 2005: 256).
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  4.  @LurchLures  You are welcome. I try to keep things civil. If you read the research you will understand the 10% point. You are correct about CB's, the BofE is wholly owned by the UK govt; the Bank of England Act 1998 lays out which is master and which servant. Our government is self funding, it issues new £s into existence (it's the only entity legally allowed to do so), via it's own bank, every time it buys something/spends. Issuing HMT securities is a purely political choice which happens ex-post of spending. These securities convert a static, non tradable entity into a tradeable commodity at a higher rate. These securities are not a funding operation, they are a refinancing operation. “The use of quantity of money as a target has not been a success,” concedes the grand old man of conservative economics. “I’m not sure I would as of today push it as hard as I once did. Simon London, “Lunch with the FT – Milton Friedman,” Financial Times (7 June 2003)
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  5.  @pauldandurandboots  The govt should never compete with the private sector for the resources it wants to use.
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  6. The JG is not a policy choice, it's fundamental to MMT.
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  7. Anyone can buy Gilts in the secondary market. Take a step back. Once you understand what govt debt is and what Gilts are, things become clearer.
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  8.  @paulsoutham2454  Yes, that's a good analogy. Similar to the question: Does Tesco have to borrow Clubcard Points from the Clubcard Points Vigilantes before it can issue more Clubcard Points.
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  9. ​ @billB101 MMT explains how our fiat money system has worked since 1971.
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  10. ​ @branduusituuli you are forgetting the external sector and the private sectors desire to save.
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  11.  @branduusituuli  Then how does that fit into your nonsensical statement: "So, if a government spends (prints) more money that it can recover from a nations income - irrespective of the source of that income - then it is spending (printing) too much money."?
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  12.  @branduusituuli  Ok. Forgetting, for now, the nonsensical "irrespective of the source of that income" ... Government injects new £s into the economy every time it buys something/spends. It drains £s from the economy every time it taxes/fines etc. It doesn't "recover" £s from a "nations income", it drains the previously issued £s via taxation/fines. All £s injected by government, except those which are saved, will be returned to the issuer via taxation.
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  13. They do, they don't want the public to know.
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  14. Reality is taxes don't fund anything at all at national level, they create the space for government to spend into.
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  15.  @theotherside8258  State pension is a matter of how much of current production those under pensionable age are prepared to give up to those at or above pensionable age. It's a transfer from those currently working to those over the set age.
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  16. MMT isn't applied or not applied. It is how things are, it's how our fiat money system and govt fiscal ops work now, today.
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  17. The private sector cannot create the currency, it can only create credit denominated in £s which nets to zero. The only way net financial assets are added to the private sector is via govt spending. The only motivation for the private sector to do anything is profit so, if there isn't a profit to be had in looking after these aged etc. (why should there be) then who is going to do it?
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