Comments by "" (@blackbulldog4897) on "Governments can’t have block holes, whatever ministers might say" video.

@mikebrough3434 oh right, I understand what you mean. Pretty much every anti MMT "article" I've ever read is a strawman. The thing is, all of the people who have been supporting the "tax/borrow", "there's no such thing as public money, there's only taxpayers money" narratives (which are obviously completely false) all their professional lives simply don't have the capacity to admit they have been wrong their entire professional lives. Plus, they wouldn't have the jobs they have if they didn't support those nonsensical ideas. Hence the farcical attempts at "pushback" against what is observable fact.
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Debt (£s still in the economy) does matter, more in terms of who has them and why than overall size. If one country has less govt "debt" than another it simply means there's less of one countries currency in that economy than the other.
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QE doesn't pay for anything, it's an asset swap; Gilts for reserves. It reverses the original transaction which swapped reserves for Gilts.
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The PM poll showed 85% of MP's didn't understand how private sector credit creation works. It also showed 70% understood govt creates new money. Swings and roundabouts.
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If the deficit was left (as it would be by default) in the ways and means account instead of it being refinanced via HMT securities then the rate wouldn't really matter to govt as all BofE profits are remitted to HMT.
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@count-beany You are welcome my friend, happy to help wherever I can. I'm always happy to discuss these matters with anyone who has an open enough mind to challenge the nonsensical orthodoxy. You are correct about the profit/loss point but, in reality, it doesn't matter as govt is the currency issuer; it neither has nor doesn't have £s. Your point on govt debt interest: consider this... If BofE holds Gilts via QE then the BofE receives the coupon payments. If the coupon payments contribute to BofE profits they are remitted to HMT, it's Alice in Wonderland. When govt issues HMT securities to refinance any deficit it's making a political choice; that political choice is to give rich people free money. Given the above, consider this: Government Interest payments have increased by over 4% of GDP 2020 and Q4 2022. That's more than energy subsidies and benefit increases combined. I agree with you regarding inflation, it's almost always a supply side issue, normally energy. Regarding interest rates, an understanding of MMT would lead you to realise the bank rate should be set to zero or close to it then let the credit mark compete on that basis. The money supply is completely endogenous.
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There's nothing controversial about the descriptive portion of MMT, it describes how our fiat money system operates now, today.
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@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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@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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@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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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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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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@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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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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Please explain how "borrowing" by the currency issuer from it's own bank is problematic in any way.
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You could but why would anyone accept your currency and, of course, how would you pay your tax?
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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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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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