Comments by "Maria" (@maria8809ttt) on "Does MMT say we can spend without limit?" video.

  1. OMF (Overt Monetary Financing) layman's terms money printing has case studies that illustrate it can create positive effects. Various analysis show that in the 1930s Japanese finance minister Korekiyo Takahashi was able to jump start the Japanese economy by allowing the central bank to create money to fund public works. Korekiyo is famous for abandoning the gold standard in 1931 and introducing a major fiscal stimulus with central bank credit that was found to have been crucial in ending the depression quickly.
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  2. Political choice.
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  3. TQE went into holding the over inflated market value, not the real economy. They could have used permanent base expansion. It's all political choice. Permanent Base Expansion is not inflationary.
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  4.  @Rob-fx2dw  Such as?
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  5. Full employment can always be achieved. Environmental employment that looks after our planet can create work as a public good. We need to think about our perception of what work is, the hours, the purpose etc. Remembering government has no need of profit.
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  6. Very true, OMF does not carry any intrinsic inflationary risk: it is the government spending itself that carries such a risk, regardless of how such spending is financed, by raising taxes, issuing debt to the private sector or issuing debt to the central bank. Indeed, all spending (private or public) is inflationary if it drives nominal aggregate spending faster than the real capacity of the economy to absorb it. That is why full employment aids productivity, that aids the increase in product availability enabling reduced inflationary pressure. More housing equals more jobs, equals more housing stock, that equals decreased price pressure. Once the stock is at the price level required and has filled optimum need, no further stimulus is required. The wages from the jobs created are spent into the economy that increases local demand and grows the economy from the ground up. Capitalists can produce goods to met that demand in the real economy. A regulated capitalist private sector, and a socialist government that stimulates the economy where required brings stability and less need of taxation.
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  7. Brilliant.
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  8. Fiat saved capitalism after the Great Depression.
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  9. Fiat also saved capitalism after the Global Financhel Crisis. Maybe we should start to look at the real problem, unregulated capitalism. The Capitalist Neoliberal Doctrine is not fit for purpose.
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  10. Look up Capitalist Neoliberal Doctrine. You will recognise all the polacies used today. This doctrine needs the state to survive. You know it advocates capital accumulation when you look at the economy and where the capital has exponentially increased and where legal protections are placed. This accumulation of capital is not socialist, it is an enlarged state assisting capital accumulation with the private sector. ​ @andyinsuffolk 
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  11. Keynes participated in the design of the international economic institutions firmly established after World War 2. Many of the protections in place to prevent the detrimental economic effects of unbridled capitalism have been stripped away by political deregulation of the private sector financial services. This will lead to economic destruction as was seen in the Great Depression. MMT cannot be removed. It is the global system implemented when gold convertibilty could no longer surport converting under the Gold Standard due to gold being a finite resource.
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  12. MMT is just the description of how the Global Modern Monetary System already works. All the levers of government ability. It is the global framework that polical polacies are attached to designed by Keynes. Keynes was the founder of macroeconomics. We use his stripped back macroeconomics today, Modern money (perminent Fiat) is just the full macroeconomic system that Keynes designed, it has always been available. It was just made perminent after gold convertibilty and the fixed exchange rate agreement was removed/abandoned by the US after the callaps of the Bretton Woods System. That was caused by the US war cost being unable to be met by gold, as gold amounts have a finite value. 1971. Modern money (Fiat) is global and working 7 days a week, 24 hours a day. Perminent Fiat has been in place since 1971-1973 globally. The transition from the Bretton Woods System to perminent Fiat and a free floating exchange rate brought havoc in the 1970s, also the oil crisis didn't help. I remember the UK polatitions made out this global transition was a demestic occurrence. And, have built many political myths around it.
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  13. ​Even on a self imposed gold standard, the government can use OMF overt monetery financing (money printing) when it wishes. It just removes the policy. The Gold Standard was just a step to align global currencies for ease of trade. How the dollar became the global currency for trade is interesting. Considering all the percks of been the global currency has. The original design by Keynes had a stand alone global currency for global trade. That never got implemented. Keynes considerd one nation holding that much power was detrimental.  @229andymon 
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  14. Ellen Brown has demonstrated how the German government used its currency issuing powers to finance public investment from 1933 to 1937, transforming a bankrupt country into the strongest European economy in just four years.
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  15. MMT is the description of how the Monden Monetary System works. The political polacies are pinned to that framework.
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  16. ​ @helenheenan3447 Very true, the Capitalist Neoliberal Doctrine is set to aid capital accumulation and protections of that accumulation. Its real economical out comes have been well documented as detrimental. It created the build up to the Global Financhel Crisis where there was a mass private sector default, then a liquidaty crisis due to private investment removing their money until the default risk was removed and absorbed by global central banks. This doctrine needs an enlarged government to absorb risk removel.
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  17. Theory, as in academic, like music theory, not as in unproven. It is the monatery framework, like music theory is the manuscript for placing a series of notes, and how those notes can be placed etc.
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  18. ​ @eastcoastuk1120 Think of political policies as the notes played on a music manuscript, there are rules within music theory that if followed have a positive outcome, we also know the negative outcomes as well, so we don't play them. The policies placed on the global modern monetary framework play the economic outcome. It can be good or bad, it all depends on the player and how they comform to the rules. We know policies that allowed unbridled capital accumulation play off key outcomes, resulting in such as the great depression, that is historically empirically proven, so rules were placed as preventative measures. People don't blame music theory for badly played music, they blame the player. MMT isn't bad or good, not left or right politically, it can accommodate the full spectrum of political policies. It is only when political policies are placed does it set the economic outcome. At the moment, Capitalist Neoliberal Doctrine, a set of political policies are producing the economic outcome we are living.
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  19. Private banks should not have the ability to increase the money supply/liability. Deregulation was gifted by the government, reregulation of the private sector banks and market mechanisms is also in the governments power concerning it's currency in the UK. This was enacted in the US after the Great Depression by Roosevelt.
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  20. Glass Steagall
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  21. UBI isn't the answer, the payments would have to be really low. I can't see capital taking a lesser cut from productivity profit. The more UBI that is required, will mean further capital profit reduction or UBI level reduction. UBI is just something to help quell the parts of the workforce that will be surplus to requirement, as tech becomes increasingly capable of reducing cost.
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  22. Yes, parts of Keynes theories were removed and over ruled by an American delegation. What was left now favoured capital. With integral parts removed from Keynes mechanisms the model failed. In stead of reintroducing the full structure of macroeconomic movement. Capital doubled down. It failed globally, again in 2008 they doubled down again. This isn't going to end well if this carries on. Social unrest is increasing, default is increasing, private sector debt is increasing, inequality is increasing. Capital is consolidating.A perfect storm, not seen since 1929. Look what happened to the stock market September 1929, Fiat was avaliable at that time, but when that much shock hits that quickly even Fiat couldn't absorb the shock quickly enough to prevent a wipeout. This is were we are at now. We need the full theory to start to reverse the crisis build up, but that is a political issue. They shouldn't have removed the protections limiting capital power and accumulation placed by Keynes after the Great Depression. ​ @oneoflokis 
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