When a News Corp newspaper starts writing articles that reflect the insights provided by Modern Monetary Theory (MMT) you know that progress in the dissemination of those ideas is being made. Even if they don’t get things exactly right. The Dow Jones & Company (owned by News Corp) daily, the Wall Street Journal carried an article last week (October 31, 2016) – Message from the Gilt Market: U.K. Can Never Run Out of Pound – which leaves no room for doubt. The London-based journalist Jon Sindreu wrote that “Among facts that take a stubbornly long time to sink in, here’s one: Countries that borrow in their own currencies never have to default on their debt”. So never again allow a person in your company to suggest otherwise. There are many like facts that seem to evade the understanding of journalists, politicians and others who desire to push the neo-liberal line. I say ‘seem’ because it is certain that many of these neo-lib banner carriers know full well they lie when they make claims about currency-issuing governments running out of money and the like. They are ideological warriors after all and in war, anything seemingly goes.
The main thesis entertained in the Wall Street Articles is as follows:Bill Mitchell – billy blog
The penny drops – WSJ acknowledges UK government can never run out of money
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia