Comments by "" (@blackbulldog4897) on "The government can never run out of money" video.

  1. ​ @milkybaravenger given the UK is a currency issuing state, credit ratings are not relevant in any way. All, that's all, govt spending is via HMT instructing it's own bank (the BoE) to mark up the reserve accounts of recipients retail banks. The UK govt is the sole issuer of £s, it never needs to "borrow" £s from anywhere or anyone except it's own bank.
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  2. MMT doesn't "prevent" anything, it's a description of how fiat money systems work, particularly govt fiscal ops. The "overdraft" is simply the amount of £s the UK has issued into existence but not yet taken back via taxation.
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  3.  @SlowCarToChina  UK govt is the sole issuer of £s, it never needs to raise revenue to spend it simply issues £s into existence every time it buys something; the other side is that the UK govt "deletes" £s every time it taxes. The only place £s can come from is govt injecting them, via buying something, into the economy. Whenever parliament passes a Supply and Appropriation Bill then the spending within it cannot legally be prevented; that's the source of all £s (we'll ignore bank credit for now). So, £s are never the issue; it's always resources, people mostly. There's no "black hole", that's pure obfuscation and the govt saying "we don't want to spend on these things". There is an "overdraft" but it's nothing like an overdraft you or I would have. There's enough productive capacity in the UK for everyone to have a job, a house and a pension without inflation being a problem; as ever it's a question of political priorities. Interest rate rises? Would you say they are an injection or a drain?
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  4.  @SlowCarToChina  I was referring to interest rates being an injection or drain in terms of govt spending. For example, in December 2023 interest payments on govt debt (it's a purely political choice to pay this interest) had increased by 4% of GDP since 2020; more than energy subsidies and standard benefit increases combined.
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  5.  @Redf322  UBI is a truly dreadful idea. It's a direct transfer from govt, a state benefit for everyone, it would be absorbed into higher prices. That means poor people are still poor, they simply have bigger numbers in their bank account.
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  6.  @adenwellsmith6908  And ... your assertion displays a fundamental misunderstanding of how fiat money systems work as the observable reality is ... the government can never run out of purchasing power (£s), it's the sole issuer of the currency, it can never run out of £s. You are confusing real resources with £s.
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  7.  @charliemoore2551  It wouldn't, it's a completely daft idea.
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  8.  @jardenc  The fact is, the government can never run out of £s. It issues them into existence every time it buys something.
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  9. 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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  10.  @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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  11. 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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  12.  @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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  13. 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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  14.  @adenwellsmith6908  Remember, the UK govt can never run out of £s.
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  15. ​ @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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  16. 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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  17.  @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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  18.  @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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