An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Sunday, October 1, 2023
Why The Government Has Infinite Money — Second Thought (video 18.35)
The US government can create infinite dollars out of thin air, but are we sure that we want the peasants to understand this in today’s social and political climate?
Federal spending is rife with corruption (e.g. endless billions for “Ukraine”). Would the corruption become even worse if the peasants fully understood the truth about federal monies?
Consider Universal Health Care. Already we have a two-tier justice system in which whites are second class citizens in Democrat-run areas, and a two-tier education system that penalizes white and Asian males.
Would we have a two-tier medical system with Universal Health Care? After all, treating all races justly, fairly, and equally is “racist.” Being color blind is “white supremacy.”
The “Cares Act” of March 2020 created $2.2 trillion. What do we have to show for that? What about a national infrastructure program? On 15 Nov 2021 Biden signed the Infrastructure Investment and Jobs Act, which created $1.2 trillion out of thin air. Most of that money was stolen. On 16 Aug 2022 Biden signed the “Inflation Reduction Act” which created nearly $1 trillion for the IRS, and for the “climate change” hoax, and for “Affordable Care Act” subsidies to hospitals and HMOs. Are we sure we want more of all these rackets?
What about a Universal Basic Income? If the peasants had that, would any of them be willing to do any work? Fifty years ago maybe, but today it would be easier to do drugs and live on the sidewalk.
Also, if the peasants understood the truth about money, then the calls for “slavery reparations” would be fiercer than ever, and not only from blacks.
The guy in the video says, “Government spending isn’t a bad thing.” No? Doesn’t that depend on what government spending is for? He says “It wouldn’t cause massive problems if the government spent more.” No? What about the social and political problems I noted above?
He says that “national debt” isn’t really a debt at all. Of course it is. Depositors lend money to the Fed when they buy T-securities. The Fed owes that money to depositors, just like any bank owes money to its depositors.
He says, “We are told that inflation happens when the government spends too much, but this is not true. Government spending has nothing to do with inflation.” No? During the world wars the US government sold “war bonds,” and instituted a withholding tax in order to get money out of circulation, and thereby control inflation. We no longer have “war bonds” but we still have the tax. Monetary issues are only half of the inflation equation, but they can’t be ignored. What if the government gave everyone a trillion-dollar coin?
Again, the US government can create infinite dollars out of thin air, but are we sure that we want the peasants to understand this in today’s social and political climate?
The Video frames MMT or its representation of the monetary system as serving a leftist agenda (which is true by the way) and thus all the true statements in the video become tainted with partisanship. A much more sober argument is needed if you intend to enlighten the public.
This is the kind of video Richard Wolff could have presented, had he not danced around the implications of MMT over the years. Prof. Wolff is a well-known American Marxist. Bear in mind this is the first video on this topic.
Both general presentations, of which there are many already, and also presentations for specific cohorts are needed to educate the public, especially since most people are heavily under the influence of neoliberal propaganda.
Right now, the so-called left is operating under heavy neoliberal tendencies. That needs to be corrected. The video implies that the war party at least is quite aware that the government has infinite money and doesn't mind allocating national resources to wars of choice rather than actual defense.
From where I'm sat, it looks like all sides of the debate are the war party at the moment.
From my experience those who are stuck in the 'gold coin' mental model, really struggle with the actual 'print, shred and save' reality.
And the neoliberal view, with its emphasis on substitution, relies upon this idea of a 'universal exchange commodity'.
The left are as bad, stuck as they are in the world of PR and marketing where they see the manipulation of minds as the key to power - where it is easier to lie for the short term than tell the truth for the longer term.
The US government can create infinite dollars out of thin air, but are we sure that we want the peasants to understand this in today’s social and political climate?
ReplyDeleteFederal spending is rife with corruption (e.g. endless billions for “Ukraine”). Would the corruption become even worse if the peasants fully understood the truth about federal monies?
Consider Universal Health Care. Already we have a two-tier justice system in which whites are second class citizens in Democrat-run areas, and a two-tier education system that penalizes white and Asian males.
Would we have a two-tier medical system with Universal Health Care? After all, treating all races justly, fairly, and equally is “racist.” Being color blind is “white supremacy.”
The “Cares Act” of March 2020 created $2.2 trillion. What do we have to show for that? What about a national infrastructure program? On 15 Nov 2021 Biden signed the Infrastructure Investment and Jobs Act, which created $1.2 trillion out of thin air. Most of that money was stolen. On 16 Aug 2022 Biden signed the “Inflation Reduction Act” which created nearly $1 trillion for the IRS, and for the “climate change” hoax, and for “Affordable Care Act” subsidies to hospitals and HMOs. Are we sure we want more of all these rackets?
What about a Universal Basic Income? If the peasants had that, would any of them be willing to do any work? Fifty years ago maybe, but today it would be easier to do drugs and live on the sidewalk.
Also, if the peasants understood the truth about money, then the calls for “slavery reparations” would be fiercer than ever, and not only from blacks.
The guy in the video says, “Government spending isn’t a bad thing.” No? Doesn’t that depend on what government spending is for? He says “It wouldn’t cause massive problems if the government spent more.” No? What about the social and political problems I noted above?
He says that “national debt” isn’t really a debt at all. Of course it is. Depositors lend money to the Fed when they buy T-securities. The Fed owes that money to depositors, just like any bank owes money to its depositors.
He says, “We are told that inflation happens when the government spends too much, but this is not true. Government spending has nothing to do with inflation.” No? During the world wars the US government sold “war bonds,” and instituted a withholding tax in order to get money out of circulation, and thereby control inflation. We no longer have “war bonds” but we still have the tax. Monetary issues are only half of the inflation equation, but they can’t be ignored. What if the government gave everyone a trillion-dollar coin?
Again, the US government can create infinite dollars out of thin air, but are we sure that we want the peasants to understand this in today’s social and political climate?
The Video frames MMT or its representation of the monetary system as serving a leftist agenda (which is true by the way) and thus all the true statements in the video become tainted with partisanship. A much more sober argument is needed if you intend to enlighten the public.
ReplyDeleteThis is the kind of video Richard Wolff could have presented, had he not danced around the implications of MMT over the years. Prof. Wolff is a well-known American Marxist.
ReplyDeleteBear in mind this is the first video on this topic.
are we sure that we want the peasants to understand this
ReplyDeleteDid the Covid pandemic not convince you that ignorance is strength?
@ Puzzimausi
ReplyDeleteGood point.
Both general presentations, of which there are many already, and also presentations for specific cohorts are needed to educate the public, especially since most people are heavily under the influence of neoliberal propaganda.
Right now, the so-called left is operating under heavy neoliberal tendencies. That needs to be corrected. The video implies that the war party at least is quite aware that the government has infinite money and doesn't mind allocating national resources to wars of choice rather than actual defense.
"The video implies that the war party "
ReplyDeleteFrom where I'm sat, it looks like all sides of the debate are the war party at the moment.
From my experience those who are stuck in the 'gold coin' mental model, really struggle with the actual 'print, shred and save' reality.
And the neoliberal view, with its emphasis on substitution, relies upon this idea of a 'universal exchange commodity'.
The left are as bad, stuck as they are in the world of PR and marketing where they see the manipulation of minds as the key to power - where it is easier to lie for the short term than tell the truth for the longer term.
Nice video. Professionally done. Guy's got 1.6 mln subscribers. Pretty nice!
ReplyDelete“ the actual 'print, shred and save' reality.”
ReplyDeleteThat not reality…it’s a figurative description…
“ where they see the manipulation of minds as the key to power ”
ReplyDeleteThat is the Platonist/dialogic method…