Wednesday, September 6, 2017

Mike Sandler — The Debt Ceiling And #MintTheCoin: Another Teachable Moment For A Sustainable Money System


It's baaack!

Bit wacky in spots though.

In addition, it erroneously attributes the idea to MMT economists when it was originated by Ellen Brown and proliferated by Beowulf. MMT'ers subsequently picked it up.

HuffPost
The Debt Ceiling And #MintTheCoin: Another Teachable Moment For A Sustainable Money System
Mike Sandler


5 comments:

Matt Franko said...

"MMT'ers subsequently picked it up."

They should drop it...

Matt Franko said...

"In fact, paying down and retiring the national debt would take money out of circulation, causing an economic contraction and impoverishing people. "

Uhhh... no it wouldn't, the "debt" is in UST accounts and is NOT in "circulation" ... or at least those balances are not comprising reserve assets at the institutions...

doing the coin would add balances to the TGA which would be available to withdraw, but without authorizing Treasury to drain reserve balances thru Treasury securities issuance as govt withdraws from the TGA at a rate that exceeds deposits.... thus forcing the institutions to hold ever increasing balances of non-risk reserve assets against which they have no regulatory capital available... July numbers put this at a current $90B/mo rate...

THAT would cause an economic contraction and impoverishment just like it did in the GFC in late 2008...

Matt Franko said...

" originated by Ellen Brown and proliferated by Beowulf."

Two trained jurists... it's definitely legal for sure....

Noah Way said...

"QE for the people" LOL

IF the people underwater on their mortgages had ben bailed out there would have been no need to bail out the banks AND the insurance companies. That's right - we bought the same shit TWICE, and the people who actually needed help - well, too bad for them. Pump and dump, baby.

Matt Franko said...

Fed asset purchases are not "the bailout!"