Hear The Bern Episode 51 | The Deficit Myth (w/ Stephanie Kelton)
Vložit
- čas přidán 13. 09. 2024
- Economist Stephanie Kelton gives Briahna a crash course in monetary policy and why the United States would actually benefit from increased deficit spending - so long as it flows toward working people, not stock buybacks. Stephanie makes the case that, in the midst of the historic economic crash that COVID-19 is causing, the federal government could go much farther than last week's stimulus package to ease economic pain and prevent mass layoffs.
Stephanie on Twitter: / stephaniekelton
Pre-order The Deficit Myth: stephaniekelto...
Love you, Briahna, love you, Bernie!
Wow! This was so helpful for me! I've known all this for years, on an intuitive level, but never had the language to explain it to others. Bernie, you're my president, bc you act like one. Love
People was a TOOL --- he was used to take the progressive thunder and energy and throw it in the gutter. An old Bait and Switch --- Bernie couldn't beat lying senile corrupt Joe Biden in A debate. How is that even possible? UNless he threw it on purpose. Bernie really does want the USA to turn into old Soviet Union.
But also "inflation" as a term is meaningless. If you have inflation completely equally then all it means is a change in number. The problem is unequal inflation.
@@MrMarinus18 You’re correct. The inequality is the problem
@@yourgodismean4526 But also a major problem the US has is that wages are forcefully kept low. If you keep wages frozen then even moderate inflation adds up overtime.
@@yourgodismean4526 Another major thing is where the money goes to. At this point increasing interest rates mostly means making the rich who have treasuries even richer.
Considering the number 1 problem in the US is the extreme inequality raising interest rates is very counterproductive.
THANK YOU BRIAHNA!!!!
I am so grateful for the time you and Stephanie gave to educate those of us that didnt didn't have a handle on what exactly the deficit was. I thought I knew, this was enlightening! Stephanie, I want that book!!!! Thank you both again ✊💕
IResonateWithU
I don’t think anyone was really listening to her.
Example: she sites Zimbabwe as an example of hyper inflation that wasn’t caused by printing money.
But that’s exactly how it was caused.
1)Government redistributed land to poor people who couldn’t work it properly
2) food supplies plummeted.
3) Zimbabwe government Attempted to give people more cash thinking people would produce more to earn the additional cash.
4) but instead, prices just rose for the same limited resources.
Classic inflation due to printing money. her example is totally bad.
It's not an education but it's just propaganda which as B.S. Kelton's statements even conflict with what the so called father of MMT claims.
@@marcoglara2012 1. Zimbabwe is an example of how hyperinflation is NOT caused by printing money but instead was caused by replacing skilled farm workers with unskilled farm workers resulting in a catastrophic supply side loss resulting in higher prices which meant the Govt had to create more money to pay those higher prices. The printing of money is an aftereffect not the cause. You yourself just stated with #1
Govt redistributed land to poor people who couldn't work it properly. This is the cause, not printing money.
@@Rob-fx2dw Can you juxtapose Keltons statements that conflict with statements from the father of MMT? or do you just spew nonsense? Provide links and explanation.
@@henrygustav7948 I have seen your comments before and your head in the sand approach to others evidence that you have rejected but not not replied to with any reasonable research to back it.. Do your homework yourself. I am not going to present everything to you on a plate to save you the effort. Show me you have done some research
Briahna, thank you for asking your clarifying questions. They were much needed!
Yes I agree! Had she not, I would have vaguely understood or it would have gone completely over my head.
I'm going to watch this every day for the next 7 days in a row so that my brain can soak this stuff in.
Corey, take it to the next level and bring it into conversations with those around you. i.e. spread the educated word!!
☮&❤
One thing many who bring up Weimar Germany like to ignore is that the main thing that kicked off the hyperinflation was the French occupation of the Rhineland which was Germany's most productive sector.
It makes perfect sense that if you have an economy that is already struggling and you suddenly occupy and cut off the area that produces around 30% of it's GDP you would get hyperinflation cause the entire economy just grinds to a halt. You also have the problem of Weimar Germany have lots of foreign debt and other countries demanding massive war reparation in terms of goods and vehicles that they now can't make because their industrial heart is cut off.
Basically what happened in Weimar Germany was that they just had the 2008 financial crash, they have massive political unrest and then they also get an economic blow comparable to the Covid lockdowns on top of that.
A big reason the inflation hit them so hard is that the government had spend money but then all of a sudden the production stopped cause of the French.
Fantastic! Thank you so much for featuring Stephanie Kelton. It is a great tutorial. This is what everyone needs to know including our young people. I will share this podcast.
Love you, Briahna! You are a voice of compassion and reason!!!
Ughhh I really wish the mainstream media would cover this so that it could reach more people.
MSM Doesn't Want People To Know This So They Can Keep People In The Dark!
Person to person is best and watching these videos helps 100%
Yas!!! 👏👏👏 Stephanie Kelton is awesome! Destroying the myth that "we can't afford it" .
@@ilan6076 you didn't watch the video or didn't understand it. Federal spending is not funded by tax dollars. Congress writes money into existence and federal taxes delete the money out of circulation. We could have a 10 trillion budget and we would be fine.
@@ilan6076 here is more info
czcams.com/video/YnyDRwSqp2E/video.html
czcams.com/video/9BYhoMILwR4/video.html
czcams.com/video/F9zEEsgjxto/video.html
For Christ sake, you can print unlimited amount of money, but there will always be limited amount of resources, goods and services. Why cant we all just stop working and start printing money? Because of her idiocy, the middle class and anybody with savings will be paying inflation tax.
@@myopinionwhileIcanstillhaveone, I need help in understanding this concept. Government writes bills then prints that amount of USD, then gets that money back through taxes and that USD are destroyed/deleted. How is this not increase tax on the people? I am not understanding this concept. What am I missing? I have been taught that money in the hands of money is alot better than money in the hands of only a few people. Any good book or a school that would help better explain this concept and why this concept makes sense over the traditional way of thinking? What I have seen over the last few months is that companies right now are in an hiring frenzy but the workers are staying home because of collecting unemployment benefits. Companies are not able to get workers even though there are plenty of places that are hiring, this is slowing the logistics chain, which is also jacking up prices on day to day items. I don't see how government involvement in the workforce is helping our workforce. Why do we need a hudge government? Why can't we do things ourselves that we are asking government to do? Most of the stuff this lady talking about is through financial education and getting the proper insurance to cover your specific needs.
It’s about time that the ‘How are you going to pay for it' myth is busted.
What everybody overlooks is the fact that M4A is a great opportunity for the Government to control waste and neglect. This alone, would bring down the extra costs of medical coverage, as it stands now!! I believe that Government Clinics would help people tremendously! I went through EIGHT years of testing and appointments before getting a hysterectomy that I should have had in my late 20s! The Doctor admitted that "they" don't see everything. But, it was the Radiologist that screwed up over and over. Even immediately following the procedure, the same radiologist reported test result "measurements" of ovaries THAT I NO LONGER HAD!! Out of ignorance and laziness! Doctors and surgeons rarely ever look at imaging and they rely on Radiologists! Just last year, a Neck Doctor wanted to again order a near tenth round of therapy for me, AGAIN! I told him that I DO my therapy! All the time!! So, after ten years of having plates and screws in my neck, this Doctor pulled up my neck scans and revealed what no Doctor ever has! I was born without a curve in my neck and all these years I was instructed to do therapy BACKWARDS! WtF??????? ALL THAT INSURANCE spent spent on improper instruction, extra tests and appintments and extra pain that I was creating myself!! Because no Doctor actually LOOKED at the Scans and the Radiologists didn't reveal the problem!! This is INSANE and Unacceptable!!
@@ilan6076 Can you read or not? Because you fools are becoming more and more of a waste of time!
Get a Clue!!!!
Kimberly Graves they always find a way to bail out corporations and wars, but not to support their most important asset, being human beings.
The answer to Briahna's question at the 47 min mark is that This is how the Politicians can keep Manipulating the Masses. The Public Must remain Ignorant of MMT or we will begin Demanding what the Gov't should already be doing...Enabling US to attain some part of the American Dream. Politicians have attained that for themselves, with some palm greasing, and to stay Socially Superior they must maintain the Income GAP. It's all a Winner take all Game with the Elites, "He who dies with the most toys wins". Average Americans are not In that Game. Every once in a while someone like Mark Zuckerberg comes along and manages to get into the Game.
I love this discussion, keep them coming. Let's speak truth to POWER. LIKE a breath of fresh air.
Wonderful conversation between two extraordinarily intelligent women. Thank you.
We have two parties that are Corporate Shills. The Dems are insurance, financial, and pharmaceutical while the Reps are oil, coal, and heavy machinery. We need to remove corporate influence from the system permanently. Public funding of elections will help but we need to push people to ignore the cultural split and vote for things that help people.
Youre a dope who will live under right wing rule if you dont wake the f up
@@SteveM-gj2vy based on what? Dems and Republicans are corrupt AF.....care to explain how that isn't true?
@@jacobkobald1753 list 5 things where democrat were 'corrupt.'
is this you or are you the one from overseas? Jacob is on Couchsurfing! | Couchsurfingwww.couchsurfing.com › people › jacobkobald
... delivery, reporting | Content selection, delivery, reporting. Show purposes. Accept All. Jacob Kobald's Photo · Jacob Kobald Hamilton, Ontario, Canada ...
@@SteveM-gj2vy Afghan report, NAFTA, Bankruptcy bill, the Clinton's in general, 1994 crime bill. And I'm Canadian I have no idea what link you just tried to post
I don’t think anyone was really listening to her.
Example: she sites Zimbabwe as an example of hyper inflation that wasn’t caused by printing money.
But that’s exactly how it was caused.
1)Government redistributed land to poor people who couldn’t work it properly
2) food supplies plummeted.
3) Zimbabwe government Attempted to give people more cash thinking people would produce more to earn the additional cash.
4) but instead, prices just rose for the same limited resources.
Classic inflation due to printing money. her example is totally bad.
Real Progress In Action CZcams Channel to learn more about MMT and a channel that is all in for Bernie, too!
Thanks for the info. :)
Not me, us.
@@philippesantini2425 Welcome 👍✔😊💖🐤
EXCELLENT - I'm understanding more and more. sharing this critical information that all citizens need to know.
Bernie! Bernie! Bernie! 🔥🔥🔥
Finally
Briahna you are the Best and we love you.
We LOVE you briebriejoy!!!!!!!
This was mind blowing. Awesome stuff! Tbis whole campaign has transformed my political views over the past 4 years-especially in 2020, for the better! Thank you!
Now lets get out there and put Bernie into the White House! #Bernie 2020!
Great guest, Briana! Ms. Kelton did an excellent job explaining the myth of scarcity of government money.
I’ve been waiting all week for this one! Very informative. If only our media wasn’t so hell bent on spreading propaganda and misinformation.
*NOT Joe US ❗*
*NEW INDEPENDENTS* Party
🔥🔥🔥🔥⚖️🔥⚖️🔥🔥🔥🔥
*💚🌎💚BERNIE 2020💚🌎💚*
#Bernie2020 - Let's DO this!!!
Bernie/Nina 2020!
How incredibly eye opening.
Briahna go on the Jimmy Dore Show and support the #GeneralStrike #RentStrike #MortgageStrike #M4A
Jimmy Dore is for losers who want to be as low as a drug dealer
@@SteveM-gj2vy nothing wrong with many drug dealers, something wrong with you however.
@@henrygustav7948 HAHAHAHA !! GREAT JUDGE OF CHARACTER !!
Bernie Bros defending drug dealers !!!
and these clowns dont understand why they have nearly been shut out for 3 straight years..about 200 elections they have lost
@@SteveM-gj2vy Its funny because Pharmaceutical drugs kill more people than drug dealers selling weed for example. Yes great judge of character. Who is the low one?
No one in the Dem party or Rep for that matter, will talk about purchasing power of the working class or the difference between currency and money
Fantastic! I love Stephany.. Just saw this tonight & am so grateful that you gave her this platform. As horrid as these in home videos are, she came across w/ incredible clarity. Much gratitude Brie
Brava, Stephanie Kelton!! Thank you for your insights. Yes, Bernie!!
You rock!!! Thanks for being so articulate. Run for office. Be Bernies VP. Go on Rising with Krystal ans Saagar
Um THANK YOU AMAZING QUEENS FOR THIS. This was information that made sense
To Bernie Sanders: Why did your campaign wait until now, April 3, 2020, to raise this issue? Why do you not have the courage to say that the way to that the way to finance social programs that every other industrialized nation has WITHOUT RAISING TAXES is to establish a budget for the military industrial complex as a PERCENTAGE (e.g. 25% instead of the current 53%) instead of a dollar amount. This would keep the US MUCH MORE SAFE by giving the military more than enough money to DEFEND the US, but not enough to ILLEGALLY INVADE other sovereign nations, overthrow democratically elected governments to install dictators friendly to US multinational corporations in wars that since WWII have invariably been proven to be based on lies that understandably created hatred for and fostered retaliation against the US by the countless other nations we’ve invaded under false pretences.
Bernie is one person up against a lot! The major news media already lies and smears on him. So many people are brainwashed in thinking they know how taxes work but since you have all of the answers on what Bernie should had done then run for office and lets see how well you do!
Excellent. Thank you for the clarity and empathy.
Yay! Mrs. Kelton.
Wow! Mind-blowing episode! I'm going to have to watch this one again!
YAY! Briahna got it, right about the 30 min mark!!!
Stephanie Kelton 2024
Thank you Stephanie Kelton you are an amazing teacher of economics.
BRIAHNA NOOOO! WHERE'S YOUR BEAUTIFUL FRO! I NEED MY FRIEND! Don't give into pressure from the evil fro-haters! #FROFOREVER!
This was a very interesting discussion, thanks to Briahna and Stephanie Kelton. This was without even discussing things like international balance of payments and international control of trade policy and the roles of the IMF and the World Bank and the new international trade banks that have come into existence that will balance international economic power and help redistribute world economic power.
Formerly economics advisor to the senator??
Ms. Kelton should teach a Master Class.
Anytime someone you know trots out the old household budget analogy, show them a Stephanie Kelton video.
Yes! Love you BGJ! Keep this up
Stephanie Kelton is a national treasure. Put her front and center in Bernie's media campaign. What have we got to lose? Everything if we don't.
Here's a great video from Dr. Stephanie Kelton czcams.com/video/WS9nP-BKa3M/video.html
Interesting. I wish the quality was better.
During COVID19 people are starting to realize that the, "How are we going to pay for it?" question, when it comes to Bernie's policies (especially Medicare For All) is the wrong question. The right question would be, do we have enough productive capacity for these policies to work? Congress just made a 2 trillion dollar appropriation without raising taxes. Where did the money come from? In fact where does everyone's money come from? How would have Bernie paid for his policies? Through The Federal Reserve.
Since The Federal Reserve prints the money for a sovereign nation, The USA, it can print as much money as it needs. But wouldn't that cause inflation and lessen the value of money? What makes that money valuable, and holds back inflation when money is printed? Productive capacity, (A.K.A., work). As long as productive capacity balances with federal spending, the value of our money will stay constant. For a long time there has been more potential productive capacity than federal spending, and that has manifested itself in unemployment. There can never be enough work done to improve our country. So why is there unemployment?
Some people might say federal spending should be lessened, because we want to lessen the Federal Deficit. But why in the world do we want to lessen the federal deficit? After all when the federal government has a deficit, what will the the people and their businesses, A.K.A. the private sector, have? A surplus! What does that mean for our economy? More people's needs, wants and ideas can become a reality, because they will not hesitate to spend on these things if they have a surplus. So what would lessening the Federal deficit mean? Taxing more from the private economy than it spends on the private economy. (This doesn't mean we shouldn't tax the extremely wealthy, because that will lessen inequality). Lessening the federal deficit would mean less money goes around for the work we do. Basically, we would all become poorer.
So, what have we learned? The idea of lessening the federal deficit is dangerous for our economy. But federal deficit spending is great for the economy, as long as our productive capacity balances with federal spending.
This is where a federal jobs guarantee comes in. It will employ all people who want to work but can't find work. Our productive capacity would increase, lessening inflationary pressures and allowing for greater latitude for federal spending to ensure the rights of all. The jobs guarantee would set a dignified baseline for our economy, such as a true $15.00 minimum wage, and provide a transition for people into the private sector.
Briahna nice interview. Would you ask Dr. kelton why is the US government borrowing from the private bank of the FED? Why not do what President Lincoln did and issue Greenbacks directly interest free or at very low interest? Thank you both so much for spending your time and efforts to help our nation.
This channel should stay active permanently. Let it grow and evolve into it's own thing, don't let it turn into another forgotten campaign channel. The movement will live post-Bernie.
I have to ask which sick puppy ticked "Dislike" on this?
Dave Pigott A Biden campaign troll, probably paid to dislike and throw shade on Bernie’s videos
Keynes clearly had a solid theory that explained monetary phenomena that is a counter narrative to the monetarists' perspective. Keynes wrote the General Theory of Employment, Interest and Money. Anyone who has taken the time to read Keynes' Theory knows that investment keeping pace with expansion in employment of untapped resources is the key to staving off recessions and finding full employment.
Keynes described principles that do seem to be part of any economic system that we have encountered throughout history. He tailored his descriptions to fit the capitalist system, though. The primary economic phenomenon that seems to exist regardless of the system is expansion of production based on exchange by participants in the system. One person's purchase or exchange is another person's income and one exchange leads to another. With money being the medium, Keynes described this phenomenon in the financial/capitalist system as the Marginal Propensity to Consume (MPC) and the Multiplier (AKA: Employment Multiplier, Multiplier Effect) that we find in Samuelson's Keynesian Cross. In my opinion, the reason expansion ends is due to accumulation of those with the lowest MPC who eventually cease to invest in the system at some point, starting a recession.
Paul Samuelson later incorporated monetarism and Keynes' Theory into his mathematical and graphical models that blurred the lines between the two by attempting to reconcile their differences. That is where we derived the IS-LM model that is typically taught in macroeconomics courses at the 200 and 300 levels. A lot of the debate between economists is regarding whether those models actually have any value. Other models that have been considered outdated also include the Phillips Curve. Notice that models in question are the monetarists' models. Keynes' Theory has withstood the test of time, in my opinion. Attempts to discredit Keynes have always seemed disingenuous to me.
The main criticism of Keynes stems from the inflationary period that arrived during the middle of last century. Part of that was discussed in this video. But, the criticisms never tackled instability and uncertainty as reasons for the lack of investment that eventually led to the drop in employment. COVID-19 will cause more uncertainty and lead to more unemployment than any other shock to our system that we have ever experienced in modern history. The policies they discuss here in this video would actually sustain the capitalist system in a crisis like this, creating stability in the system in what is commonly referred to as a social safety net.
Keynes' Theory:
Note: Keynes was not a socialist. He said so himself. Keynes also stated he wasn't necessarily a friend of labour. Oddly enough, the link I found for anyone to read his Theory is on a Marxist website. But, make no mistake, Keynes was offering a theory of maintaining the capitalist system. Anyone who says otherwise has mischaracterized that which they never researched.
Link: www.marxists.org/reference/subject/economics/keynes/general-theory/
Keynesian (Cross Khan):
Link: www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/macroeconomics-the-keynesian-cross/v/keynesian-cross-and-the-multiplier
Wonderful discussion, TY.
Simple: The gov't washes its own cash through product offerings called bonds. IT ISN'T DEBT! Bonds are interest-bearing products offered by the government to reclaim their own cash. When they print more cash, they offer bonds to reclaim it; if necessary.
Inflation is akin to drought and government spending is the overall climate. The last thing we need in a drought is less rain and the last thing we need in a cash-flow blockage is less government spending.
Just a suggestion since it was a good interview but the breaks in network stream made it hard to follow. Maybe Bri and Stephanie could redo their side of the interview each with a separate just audio or video recording, paste the segments back together repost?
I LOVE STEPHANIE!
I HOPE SHE BECOMES TREASURY SECRETARY....
SHES PERFECT FOR AWAY FROM CAPITALISM
The you tube channel Economics Explained just did a great video on MMT.
You should let us ask questions on live stream.
Love you Brianna love you Bernie
One of the most important questions isn't answered about MMT. If MMT is used to a certain extent will the US dollar end as the global reserve currency? When the USD money supply is increased that devalues the price of USDs held globally. Eventually all countries would stop using USD and end up creating another global currency. The world would essentially be paying for Americans, which wouldn't last long. Japan can be used as an example of what the US economy would become. Long working hours (16 hour work days), low wages, but low unemployment. Also the cost of imports would rise drastically. Example an iPhone would be 2-10x more.
The world of possibilities once we #LearnMMT...
Thanks
Would've loved it if the Prof had directly answered the question about the causes of hyperinflation in Venezuela
Excellent explanation !. All econ majors are shaking our heads ! We speak with a vocabulary known only to ourselves to describe economic events that exist only in fiction - ceterus paribas
Very good.
Kelton For Congress!
Great post! 😊
The two big parties are totally beholden to their corporate donors / owners. Time to join third parties that are NOT servants of corporations.
Brie melts my heart!
For those that are still confused, I suggest watching Stephanie's vid: czcams.com/video/K5AtywE68-s/video.html
The sound keeps blurring on very important 'nouns.' So, I still don't really get your point. Very Frustrating!
#RentStrike #mortgagestrike #generalstrike there are #SocialistAlternative #GreenParty alternatives #RentStrike2020 near u
may i highly recommend economist Mark Blyth?
Wow! Very informative and eye opening!!
stephanie is great. ted is silly to ignore her angry birds approach
Bernie please call of any discussions of the stimulus package!! You've always voted the hard way.Now is the time you leadthe american people towards socialized medicine .by blocking this corporate heist.
Talk about the fed balance sheet, the 0.01% now will own 80% of all US assets instead of the previous 50%
We are at 10 million claims btw and folx in my state are getting busy signals in Oregon
This seems nuts. The reliance on the dollar as a reserve currency is clearly floating us all along--it is a status that will be lost in something catastrophic (like a pandemic that is dealt with worse here than other countries). Also, there's no concern here about the relative strength of the dollar and the effect of weakening the dollar in a world that relies upon trade. Also, I am really concerned that there is no talk about the drag of the deficit on paying for medicare or social security or discretionary spending--the increasing proportion of debt payments that is total expenditures is crazy and dangerous. Maybe I'm one who's nuts?
I agree that the way expenditures are used is prioritized in ways that are poisonous and encourages inequality. I agree that concerns about inflation have been overwrought due to forces that have not been understood (but probably due to internationally widespread QE and GDP growth). I guess I'll have to read more about the rest to see what and what does not seem reasonable.
Great points! The debt payments have been reducing post 2008 as interest rates have been very low. It would also be interesting to consider pragmatic primary purchases of treasuries from central banks. This would see the interest (minus opex) returned to the government through royalties from the central bank. The globalized aspect of capital and trade is where I have a lot of questions. Would love to see a follow up that discusses how MMT works in globalized context.
A light in the darkness, one that gives hope. Now let's start spending those greenbacks on things of value -- clean energy, a national electricity grid, Teslas and other EVs, replenishing and enriching soil, a rational national health care systems with twice as many caregivers and stockpiles of PPE and vaccines, teacher salaries, and so on and on. I'm a year younger than Bernie, and I want to see us complete the vision of the New Deal and more.
So good!
People are going into debt for school tuition to learn false information this is what is truly scary don't you agree Stephanie.
More videos and keep it to 5 minutes. Love you.
Ngl, Briahna trying to get economics cracked me up. Loved this episode.
Time for a TED talk, Stephanie ! Or is that too hot a topic for the info elites?
Creating the money and spending it is equalized out as long as the money that purchased the bond remains "frozen", when the bond matures they get their money back plus the interest and effectively causes an inflation of the amount of money in the economy. The equalizing effect is determined by the maturing time of the bond, basically just pushing the increase of the money supply into some point into the future.
Unless, the money tied up in the bond market never leaves, which would cause the bond market to grow indefinitely.
You should have asked the question, "what happens to the bonds"?
What about the US Gov Red ink that went to tax cuts that went to stock buybacks that disappeared?
There is strings attached to the loans. You cant have a stock buy back for the extension of the loan plus a year
Is it all about the spectermins?
"For ordinary people, public budget deficits, despite their bad reputation, are much better than private loans. Deficits put money in private pockets. Private households get more cash. They own that cash free and clear, and they can spend it as they like. If they wish, they can also convert it into interest-earning government bonds or they can repay their debts. This is called an increase in "net financial wealth."
Ordinary people benefit, but there is nothing in it for banks.
And this, in the simplest terms, explains the deficit phobia of Wall Street, the corporate media and the right-wing economists. Bankers don’t like budget deficits because they compete with bank loans as a source of growth. When a bank makes a loan, cash balances in private hands also go up. But now the cash is not owned free and clear. There is a contractual obligation to pay interest and to repay principal. If the enterprise defaults, there may be an asset left over-a house or factory or company-that will then become the property of the bank. It’s easy to see why bankers love private credit but hate public deficits."
www.thenation.com/article/defense-deficits/?fbclid=IwAR0Dr_InEN9KnnOSKAK14lTTHd4E5EHXyidh6LMeSKQIRQyECRmJ05StQQ0
A huge part of the valuation of money is confidence in it. When a person witnesses the conjuration of wealth from thin air, it does not instill that much needed assurance.
Like we constantly witness on Wallstreet? Your theory doesn't hold water. As a matter of fact, the taxes only being payable in the US dollar, in combination with bond purchases is actually what gives the dollar its value.
Well, well, well, that didn’t age well.
How’s that spending driven inflation going for you? How are your groceries prices?
Bankers don't want governments to run deficits because they maximize their gains during the debt deflation recessions that government deficit spending can prevent from occurring.
Printing money does cause inflation. Iraq printed money to pay contractors and buy materials to rebuild infrastructures destroyed during first gulf war as they were banned from selling oil.
That caused Iraqi dinars to jump from 6 to a dollar to
3000 to a dollar in a matter of 2 years which devalued the currency.
However, Iraq is a single commodity based revenue with currency that is only used locally.
The US economy is vast and versatile and 60% of US currency is used outside the US.
That mean even with printing currency, more people outside the US will get affected that in the US.
Iraq was destroyed, its lack of productive capacity that causes inflation. Supply side shock. Inflation CAUSES money printing, money printing does not cause inflation.
My guess is the ugly truth about the deficit myth is that it serves to protect corporate interests. They do not want those social programs to exist. They do not want a populace that is economically secure because that would impinge on their leverage to extract profits as big as profits as they do now at the expense of the populace whose insecurity best serves their interests and profits.
Isn't it to some extent because they only allow a small portion of the population to have the money that it prevents inflation in the classic sense? If most everybody in the economy is suffering and living paycheck to pay check or homeless even then there will always be this extreme demand or expectation of value for the dollar...
For the average person it would be good to know how much the employed/unemployed people received vs how much big business got.
You can print unlimited amount of money, but there is always going to be limited amount of resources, goods, services. Printing money is not the solution, real production is. When you print money, you are stealing purchasing power from the people who actually have had to work for the money. It is different to get money by working and different to get money out of thin air by doing nothing and just spend it. Where is government going to get money? By printing it? Why has the government such a privilige but not an individual? Why can't we all just print money out of thin air? Yeah righ, some of us have to actually create REAL VALUES that this out-of-thin-air printed money chases.
Against corona-virus, like Japan, Germany, China and Russia, Avigan-tablets could be applied to health control workers and patients, parallel with ventilators and social distancing.
11:00