Comments by "" (@blackbulldog4897) on "Politicians claim countries must be run like households, and that’s completely wrong" video.

@c.j.griffin MMT doesn't describe those things, it's not a policy regime (except for the Job Guarantee). It's a framework for understanding and explaining the capacity of a currency issuing state with it's own fiat, floating currency. Understanding the framework allows you to look at policy options using what's termed as the "MMT Lens".
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Everyone close to HMT and the BofE understands how the money system works. Many others in power do too.
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As Minsky said "anyone can create money, getting it accepted is the difficult part".
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@adb9125 ah, right. In reality, the only borrowing the UK govt undertakes is via it's own bank, the BofE. Try to think of the "national debt" as the amount of £s govt has spent into the economy minus the £s it's drained from the economy via taxation. It's a different paradigm to the one we are normally exposed to but, unlike the normal narrative, it's correct and based on reality.
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MMT doesn't predict anything at all. It's a framework for understanding and explaining the capacity of the currency issuing state.
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@kevinsyd2012 Well, taxation is paid into the Consolidated Fund so it offsets govt spending. Read some Bill Mitchell on the MMT view of the purpose of taxation.
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@kevinsyd2012 Well, taxation/fines etc offset govt spending. "Taxes in MMT, in addition to their redistributive and allocative functions (dissauding people from smoking etc), are an essential tool in allowing governments to pursue a spending program without pushing nominal spending growth ahead of the real productive capacity of the economy." The BofE creates £s, via balance sheet expansion, every time govt buys something/spends whether it's for public services or not.
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@kevinsyd2012 No, it's not. The MMT view is the primary purpose of taxation is to free up resources for the public sector to use.
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The £ is a fiat (not commodity), floating (not fixed/pegged) currency.
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What's the mechanism for the World Bank overruling the UK parliament?
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@chrisnew5724 Of course they understand the powers they have, they use them all the time. Whether they use the ones we want them to use, in the way we want them to is another matter.
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The Bank of England Act 1946 disagrees with you.
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Why do you mention rolling over debt?
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@JibbaJabber I'll try again. We'll have to forgive you for quite a lot it seems. Particularly for not understanding f/f currencies cannot be devalued because, well, they are fiat not commodity based and, well, they float. What do you think the correct level for £v$ or £ v Yen or Euro is? Here's what I'll say to the OP, the significance of which will obviously elude you: Do you see or expect to see the £v$ rate drop every time a bank loan is made? Do you expect to see the £v$ rate rise every time a bank loan is repaid?
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@JibbaJabber YT keeps deleting my replies. So I'm going to ignore your fundamental ignorance and ask you and the OP some questions. What do you think is the appropriate level for $ v £? OP: Do you see (or expect to see) the £ fall against the $ when a bank issues a loan? Do you see or expect to see the £ rise against the $ when a bank loan is paid off?
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@JibbaJabber I think we'll have to forgive you for quite a lot. The £ is a floating currency , it's value against other currencies "floats", it's also a fiat, not commodity based, currency so it cannot be devalued as you mistakenly asserted. Now that's out of the way, what are these "market forces" you refer to?
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@JibbaJabber Youtube keeps deleting my replies, wonder why?
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@JibbaJabber We'll have to forgive you for lots of things, not least your confusion around floating currencies. You are still clinging to the "devaluing" idea and really don't seem to understand that fiat, floating currencies cannot be devalued because, well, they are fiat (not commodity) and they float. If you can't or won't understand that then I don't know what to say to you. Now we've got that out of the way, what do you think is the "correct" exchange rate for £ v $ or £ v Yen? For the OP, do you see the exchange rate v $ or whatever falling every time a bank issues a loan or rising every time a loan is paid off?
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@JibbaJabber I think we can forgive you for not noticing lots of things, particularly that fiat, floating currencies (such as the £, $ etc.) cannot be "devalued" as you seem to think they can because, guess what, they float! If you can't or won't understand that simple truism then I don't know what to tell you. The record shows it was you, not I, who introduced city FX traders when you said this, and I quote: "Are you telling me city forex traders don't follow such news in the dealing rooms?" But, no drama, I'll forgive you for not noticing that either. Ok, so now we've got those things out of the way and you've been forgiven for them, what "value" in $ or Yen or whatever do you think the £ should have? What, in your opinion, is the correct exchange rate between the £ and other currencies?
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@JibbaJabber it's not I who is confused, if they are "given", why are you talking about "devaluing" a fiat currency and the BoE manipulating/pegging the fx rates. You seem to have forgotten we left the gold standard in 1931 and BW ended in 1971. Traders? Who knows what they think. I suggest you read some Oberlechner and the investigations on fx traders "habits".
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@JibbaJabber You are making some category errors. Firstly, fiat currencies are not commodity based, therefore they cannot be "devalued". Secondly, floating currencies float; they aren't pegged as, if they were, they wouldn't be floating currencies would they? What tools do you think, in the age of fiat floating currencies, the BoE uses to manipulate/peg the exchange rate?
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@adb9125 every country with its own fiat floating currency operates in the same way. The institutional arrangements may differ but it's all the same kind of operation.
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@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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@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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@JibbaJabber the £ and, for example, the $, ¥ etc. are floating currencies. The rate of exchange between them depends on demand between any pair. Something like 90% of FX activity is speculation. Do you think, for example, currency traders look at M1 (or whatever series they decide upon) and think "there's more of of those this week/month so I'm going to short them?"
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@adb9125 why would it?
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@adb9125 I can understand why you might think that but it's not an appropriate way to frame things. By that logic the $ should be worthless (as there's far more of them in existence than any other currency) shouldn't it? Also, don't forget about the endogenous credit money creation by the private sector - it increases and decreases all the time.
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@JibbaJabber what £1 will buy you at any particular time depends on multiple factors, in terms of imports it's a floating currency. However, £1 will always be worth £1 in terms of your tax liabilities.
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@adb9125 it's not "borrowing" in the sense we normally understand it, it's simply the govt being in debt to it's own bank. How do you think the above can "devalue" £?
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 @billB101 MMT explains how our fiat money system has worked since 1971.
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 @branduusituuli you are forgetting the external sector and the private sectors desire to save.
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@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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@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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