BRICS
Learn #MMT
Warren Mosler
(http://www.collectedworksofwarrenmosler.com/)
Randall Wray
Randall Wray: Dirua hasiberrientzat
Randall Wray: Egin al dezakegu diruak guretzat lan egin dezan?
Randall Wray:
Jadanik aipatuak:
Randall Wray: dirua hasiberrientzat (elkarrizketa)
“Whaever is doable is financially affordable”, alegia, “Egingarria den edozer eskuragarria da finantzen aldetik.”
Randall Wray: nola MTM-k mundua salba dezakeen (elkarrizketa)
“Whar matters is resoursez, not money”, alegia, “Axola duena baliabideak dira, ez dirua.”
Hona hemen informazio pixka bat gehiago:
a) Randall Wray: Nola MTM-k mundua salbatu dezakeen
b) Randall Wray: MTM hasiberrientzat. Politikari baten gida
Segida MTMz:
Warren Mosler, 1996
Comments on the Current U.S. Budget Debate
(https://www.epicoalition.org/docs/comm.html)
The assumptions underlying the current budget debate are erroneous….
It is only after the deficit begins to expand again that the economy recovers. The historical correlation is 100%….
Contrary to general perception, fiat money is driven by the fact that taxpayers need the government’s money to pay their taxes. … so it can obtain the real goods and services it desires via the spending of its currency.
…. Treasury spending is a reserve add. Selling securities, by the Fed or Treasury, is simply a reserve drain, a monetary operation. This underlies the empirical evidence that nations can run any debt ratios they want, in their own fiat currencies, and still “fund the debt.”
How large a deficit is prudent? …., the government could offer a job to anyone who wanted one, at some minimum rate of pay deemed appropriate, and let the deficit float. This would end unemployment and unemployment compensation, eliminate the need for minimum wage laws, and promote price stability,…
The Federal debt is all the money spent but not taxed. …
The current budget debate is based on erroneous assumptions. Washington does not understand fiat money. Until it does, efforts to reduce the deficit will continue, and the economy will continue to underperform.
Segida:
August 28 marks the anniversary of Martin Luther King Jr.’s ‘I Have a Dream’ speech. The famous speech, made in 1963, is a reminder that the struggle against racial prejudices and the need for change in mindset still persists in the US today.
oooooo
Bob Dylan and Joan Baez perform “When the Ship Comes In” at the March on Washington for Jobs and Freedom, August 28, 1963.
Bideoa, hemen: https://twitter.com/i/status/1696236267137044867
oooooo
Vladimir Zelensky’s statement for the Rada TV channel revealed the main fear of the Kiev regime: to be left without Western money, weapons and support, Leonid Slutsky, Chairman of the Russian State Duma Committee on Foreign Affairs and LDPR leader, said: https://vk.cc/cqtgE8
oooooo
Press release on the exchange of greetings between Russian Foreign Minister Sergey Lavrov & Foreign Minister of the Arab Republic of Egypt Sameh Shoukry on the 
th anniversary of diplomatic relations between the two countries. Read in full: https://t.me/MFARussia/17170
0ooooo
Iran has completed a £2.5 billion oil barter deal with China to build the Imam Khomeini International Airport (IKIA). 
oooooo
The Sirius Report@thesiriusreport
Saudi and Iranian rapprochement has many advantages:
Iran Railways announced the transit of Russian cargo to Saudi Arabia via the Iran transport corridor for the first time.
We have discussed this transport corridor in great detail over several years and highlighted why it is another important development in the multipolar world.
oooooo
oooooo
WATCH:
@afshinrattansi asks former US Army Commanding General in Europe Lt. Gen. Ben Hodges if the US military is totally ineffective and a waste of money
Full interview: https://rumble.com/v3cfylo-ex-us-army-europe-commanding-general-ben-hodges-challenged-on-russia-nato-p.html
Bideoa, hemen: https://twitter.com/i/status/1696147773022760987
oooooo
Russia in South Africa @EmbassyofRussia
FM Sergey #Lavrov: 
#BRICS Plus is already underway. We have invited over 60 countries that are interested in developing relations with our association in the BRICS Outreach format and partner countries. This is a new format that was endorsed at the summit in South Africa.
French President Macron seems to retain a colonialist mindset in telling his ambassador to Niger to stay there
oooooo
According to an ngo Gun Violence Archive, more than 28,000 Americans have died in gun violence thus far in 2023. This needless slaughter will end when the National Rifle Association is banned and stores stop selling handguns to anybody.
oooooo
Indian Prime Minister Modi stated in an interview that he believes that the Ukraine war is “above all a humanitarian issue. The effects of the ongoing conflict have affected the developing world the most.” He remains neutral and advocates diplomacy.
oooooo
Dmitry Medvedev: Our enemy is constantly counting painfully how much and what we have left. Tanks, shells, missiles and more. This is understandable – enemy propaganda lives by its own laws. But not only – such a calculation is quite in the logic of the very existence of the
Bandera state. After all, it is a parasitic country and receives food “from the body” of its owners, lives at the expense of them. There will be no arms supplies, and everything will end quickly for the Bandera regime. The parasites will die.
We provide ourselves with all types of weapons ourselves. And today, already in quantities exceeding the current needs of the Armed Forces. This is how our military-industrial complex operates now. Its conveyors work in three shifts. And he will produce armaments as much as is necessary for the effective defense of our Fatherland.
oooooo
Requesting the British Museum to return Chinese relics plundered by the UK has now become a trending topic on China’s Twitter-like platform Sina Weibo with more than 210 million views.
oooooo
Zelensky says he told Lindsey Graham that he’ll only hold elections if the US gives him $5 billion dollars
Bideoa, hemen: https://twitter.com/i/status/1696160300653789248
oooooo
Russian Embassy, UK@RussianEmbassy
#Zakharova: In effort to distract attention of its Western handlers from problems on the frontline, incl fiasco of so-called counteroffensive, neo-Nazi Kiev regime continues to launch pointless strikes against civilian facilities, with foreign media actively covering them.
oooooo
While the world is screaming about Ukraine’s sovereignty, Israel just dropped bombs on the civilian International Airport of Aleppo in Syria, putting it out of service.
This is a war crime.
And not a peep from the “international community”.
oooooo
Scholz about his conversations with Putin: “Something bothers me more than the talks: He (Putin) is not complaining about all the sanctions.” The person that singlehandedly killed the German economy with sanctions against Russia is shocked that Russia doesn’t care about them
General Mark Milley, the chairman of the US Joint Chiefs of Staff, told Jordanian TV on Thursday that US forces illegally occupying oil fields in Syria’s northeast will remain there for “many, many years” to come
oooooo
“The world is not aware of it but they’ve financed all of America’s wars in the Middle East. They’re financing America’s war in Ukraine against the Russians. The reserve currency country can exploit the rest of the world. And does.
Germany will be deindustrialized.
Why are people so utterly and totally blind to the real reality and talking about things that don’t matter? It’s like they’re insane! They simply can’t accept reality! They have no comprehension of the world they’re living in!
Real problems are unacknowledged and unaddressed and I think they’ll remain that way until the slide becomes rapid.
When Washington started weaponizing the dollar with sanctions and confiscations, the world started wondering about having dollar reserves.
Washington is a bunch of totally incompetent fools! Why expand your debt beyond reason and then discourage people from holding it? How does it expect to survive?
How is it a superpower when it can’t even think? It has an economics profession that is completely blind! It understands nothing! It has a financial press that’s a joke!”
— Paul Craig Roberts
Bideoa, hemen: https://twitter.com/i/status/1696392493984817263
oooooo
“At any level, the prevalence of private military in our world is a symptom of a disease. And that disease is corporate power, and the rule of the 1%, they have created a world to enrich themselves, but that creates a barren wasteland of a world. So the 1% hide behind Wars now..”
Aipamena
Matt Kennard@kennardmatt
abu. 15
The culture war is a gift to the 1%.
Don’t get played.
The real war is corporations vs the people.
Bideoa, hemen: https://twitter.com/i/status/1691474097237069824
oooooo
Yes indeed, but all colonial powers (since ~5,000 yrs ago?) have issued a currency (on foot of future tax demand) as a tool of their political/military control of trade. (Within their home States too.)
And this leads straight to the present day….
They needed people to work in exchange for their otherwise worthless tokens, so typically in a year’s time -a full cycle of agricultural seasons – all citizens would have to ‘return’ (‘revenue’) some tokens back to the State (that had previously ‘paid’ for stuff with this ‘money’ thing).
An ‘Economy’, defined as using a ‘monetary’ thing, ~ begins with a State powerful enough – often a colonial power too – to politically & militarily impose a ‘tax’ debt – or else. This is many 1000s of years of human history.
The people controlling those States, the incumbent ‘rich’, never want the citizens to know that the ‘money’ thing it issues (pays with) is both near free to produce & not ‘scarce’ at all, ever.
It’s the same today. The underlying model of governance is –
-
rich elites gain & sustain political power by propaganda monopoly & periodic militia/military violence. (Conflicts with regional rival rich elites ‘patriotic’ ‘outgroup’ targeting propaganda ad adjunct to local ‘divide & rule’.)
-
imposition of the monetary system follows
But note, the monetary system itself is politically neutral, because if the State provisions society with an such agreeable, ‘eusocial’ living environment (neuroscience/psychology term) people are content & no one cares what tax is paid.
What I mean by ‘content’ here, is that if the masses of ordinary, working class citizens assess that real terms *progress* is being made, they don’t care what ‘ideology’ or any other label of Government is in power.
MMT shows that the present monetary system can maximise use and whatever distribution of ‘real resources’ it has available, 100% domestically, & by mutual agreement in foreign trade.
On the other hand…
Too much tax, relative Gov’s spending means involuntary unemployment & misery, *eusocially* as well as financially. (Rich elites also take advantage to target the non-working masses as an unworthy ‘outgroup’ to divide us & get us tolerate that we must compete for artificially ‘scarce’ wages.)
Of course, finessing full voluntary employment by annual +/- fiscal increments, in a large & complex private sector (>50% GDP), ever in flux, is always a hit and miss affair.
So… the only non-descriptive part of MMT, is the Job G’tee full (voluntary) employment ‘buffer stock’ system – an ‘automatic stabiliser’ enhancement for maximising ‘real’ terms efficiency of the economy.
An ‘efficiency’ that any ‘eusocially’ coherent & ecologically informed society should feel obliged to employ to ensure a minimum standard of health in body & society, for all.
Human labour, at minimum ‘wage’ level, therefore, is always ecologically impact ‘free’ compared with any higher waged/higher consuming employment.
If we have *any* unmet local community social needs, that can be met with minimally trained/qualified labour (or even trained labour if individuals & community agree), then there is zero reason for Gov as currency issuer not to hire any & all who want this work. (With mutual community/democratic consent for JG programmes.)
The monetary system – economic system – using the Gov issued fiat currency structure we already have (or could easily have) – is *not* the problem. (Nor are any ~isms, 19th C or otherwise 😉 )
It’s the public information/discourse system under monopoly control, & the people they elevate to political power (whether ‘votes’ are involved or not), that is the #1 problem.
Preventing humanity from evolving to a potential next stage of eusocial harmony/sustainability on this finite & rapidly over-used planet, our only home.
Aipamena
Go Wash Your Brains #MMT@AllredRd
abu. 28
@LarpAscending @PDWriter eta @MikeHMMT erabiltzaileei erantzuten
The caveman fire example doesn’t account for the existence of money and the emergence of markets.
“I’ll regularly pay you money to light the fire every night” came much, much later.
oooooo
Pavlina Tcherneva: enplegu osoaz
Pavlina Tcherneva: Lan bermea eta MTM (Moneta-Teoria Modernoa)
oooooo
oooooo
youtube.com
Scott Ritter: Answers Questions Ukraine-Russia Special Military…
Order Scott Ritters Book @https://www.claritypress.com/book-author/scott-ritter/Ana
Bideoa: https://youtu.be/_BnsjcMBuYg
oooooo
Turkish President Recep Tayyip Erdogan could visit Russia on September 8, Bloomberg reported, citing Turkish officials familiar with the situation:
oooooo
#Opinion by Maria Zakharova
We are talking about the dumping of almost 1.5 million tonnes of radioactive water from the Fukushima NPP into the ocean.
What is the price for the silence of the world’s leading environmental organisations? 
http://is.gd/KOpyQ1
oooooo
The 2023 edition of China’s standard map was officially released on Monday and launched on the website of the standard map service hosted by the Ministry of Natural Resources. This map is compiled based on the drawing method of national boundaries of China and various countries in the world.
oooooo
On 2013, ten years ago, during his visit to #Kazakhstan president Xi announced his plan to reinvent a Silk Road – now it is known as biggest investment project in XXI century.
To find out why he announced that important news in #Kazakhstan watch our documentary with with @TheOliverStone “QAZAQ History of the Golden Man” on #AmazonPrime
https://amazon.com/gp/video/detai
oooooo
Angelo Giuliano@Angelo4justice3
Why Zelensky changed his mind and now wants to have presidential elections ?
Simply because won’t be reelected and he wants out, he knows Ukraine’s days are counted, nobody wants to be a president signing unconditional surrender and facing the shame of having been used as cannon fodder in a proxy war orchestrated by the collective West. If he was to stay in power as a de-facto dictator, Zelensky would risk to be hanged by his own people, especially the far-right neo-nazi factions. Most presidential candidates in order to participate will want to get insurance of protection by the CIA with “exfiltration” options and of course the money and villas as bonus package to serve as governor of US vassal state until defeat is declared and then Ukraine will be completely left alone by the collective West, discarded like a used condom.
NATO will then shift Eastward on the next war using Taiwan this time against China, average Joe will soon forget this war and Ukraine even existed, Hollywood will also make sure to embellish the narrative and turn the humiliation into a heroic battle…
Average Joe is just too busy to see the big picture or sometimes it is more convenient to pretend not to know when one is accomplice of a crime by staying silent.
oooooo
Iran awards $2.7bn airport project to Chinese contractor Iran will pay for the project in crude oil. Iran & China are not even waiting for BRICS payment system to kick in. They’ve already started expanding ties!
oooooo
My latest 2 minute topic
Bideosa, hemen: https://twitter.com/i/status/1696282064847278432
oooooo
A homegrown process compressor was unveiled in Iran
The domestically manufactured compressor is the first piece of equipment that will be installed at the Venezuelan El Palito Refinery in competition with the American one.
Iran is revitalizing Venezuela’s economy so that once it joins BRICS it will be ready to export its oil to BRICS countries
oooooo
Top Putin’s Interviews With US Journalists
oooooo
The mainstream media does not tell you, but there are already starvation deaths in Nagorno Karabakh caused by Azerbaijan’s illegal blockade. Where is the outrage? Why is no one focusing on the self-determination of the Armenians?
oooooo
What happens when a British academic with a history of anti-Putin animus colludes with a former CIA Russia hand with a history of getting it wrong on Russia to write about the Prigozhin affair? You guessed it—Putin did it! Shallow analysis, but this is par for the course at RS.
0ooooo
Tucker in Hungary
Aipamena
Tucker Carlson@TuckerCarlson
11 h
Ep. 20 Hungary shares a border with Ukraine. We traveled to Budapest to speak with the country’s prime minister, Viktor Orbán.
Bideoa, hemen: https://twitter.com/i/status/1696643892253466712
oooooo
Tucker Carlson on the inevitable collapse of NATO. Filmed in Hungary.
Bideoa, hemen: https://twitter.com/i/status/1696518346513277086
oooooo
youtube.com
BREACHED Russian Defensive Lines in Ukraine? w/Scott Ritter
#Ukraine #Scottritter #Putin #military #Biden #Nato
Bideoa: https://youtu.be/AK3S0fIHup4
oooooo
If you want to know how Belarus feels about the special military operation in Ukraine and several topics related to the operation, including Wagner and the Ukrainian Banderists, I would recommend watching this interview with @RealScottRitter and Grigory Azarenok. #VoteForShlikas
Aipamena
Scott Ritter@RealScottRitter
abu. 28
https://rumble.com/v3cg9vt-scott-
oooooo
The dynamics of war insanity will be broken when the Global Majority in Latin America, Africa and Asia demand that NATO stop escalating the war and tell Ukraine that the game is over.
oooooo
Victoria Nuland on the loose
oooooo
INTERVIEW: The one man who could have guaranteed the Wagner boss’s safety, Vladimir Putin, wasn’t going to do it anymore, says Scott Ritter Follow
Bideoa, hemen: https://twitter.com/i/broadcasts/1yoKMZoaAylGQ
oooooo
Bernie Sanders before he became a sheepdog for Biden & the Democrats: “There are those people like myself who believe a third party is the future…My experience in working within the Democratic party is that it is USELESS.”
Bideoa, hemen: https://twitter.com/i/status/1696523453745250652
oooooo
“Those who say they’re going to invade Niger [for democracy], many of them are coup-makers,” says former Ivory Coast president Laurent Gbagbo, overthrown in a French-backed coup in 2011.
ECOWAS wants to invade Niger for “uranium, gas and oil” deals.
Bideoa, hemen: https://twitter.com/i/status/1696170164520198238
oooooo
Colonel Bachirou Amadou, Niger National Council: “The fight will not stop until the day there are no longer any French soldiers in Niger.”
Bideoa, hemen: https://twitter.com/i/status/1696589273816834423
oooooo
The Sirius Report@thesiriusreport
It’s incredible to see Bitcoin devotees cheerleading a Bitcoin ETF and yet continue to talk about how Bitcoin will liberate humanity from the current financial system. Do they seriously not see the stupidity of such thinking?
oooooo
Learn #MMT
oooooo
In Gabon, the military announced the cancellation of the results of the national elections and the dissolution of government institutions. The army leadership expressed its disagreement with the results of the elections, dissolved the existing institutions of power and
and announced on television that the results of the national elections were not accepted. Gabon borders to remain closed until further notice – military
Bideoa, hemen: https://twitter.com/i/status/1696774546085584988
oooooo
Akon: #China has done more for #Africa in recent years than the #Europeans had over centuries.
Bideoa, hemen: https://twitter.com/i/status/1696709468887654519
oooooo
This was from nearly 2 years ago. Germany has taken the wrong path and they are rapidly running out of time and road. We have spoken about the Moscow – Tehran – Beijing axis coming to fruition, as part of the multipolar world, for years. Iran now to be part of BRICS.
Aipamena
The Sirius Report@thesiriusreport
2021 ira. 17
Xi: Today we will begin the necessary procedures so that Iran will become a full member of the SCO. The Russia-Tehran-China part of the multipolar axis is developing quickly. Germany has to make a decision relatively quickly. Go down with the west or embrace Eurasia in full.
oooooo
The UK government pays by having its central bank, the Bank of England, credit bank accounts. The idea that a government has to “raise cash” to solve “Britain’s problems” is plain wrong. They can spend whatever amount of pound sterling they put into their budget.
Aipamena
Owen Jones@OwenJones84
abu. 28
For politicians, “tough decisions” means clobbering the poor, not taxing the rich. Any politician who claims Britain’s problems can be solved without raising a lot of cash isn’t being honest with you. My new column
https://theguardian.com/commentisfree/
oooooo
Learn #MMT
oooooo
George Galloway@georgegalloway
Scott Ritter: The List Of Prigozhin’s Enemies Is Long | MOATS with Georg…
INTERVIEW: The list of Prigozhin’s enemies is long
“INTERVIEW: The one man who could have guaranteed the Wagner boss’s safety, Vladimir Putin, wasn’t going to do it anymore, says Scott RitterFollow MOATS on Y…
oooooo
The conventional wisdom in the West is that this war will make NATO more united. The influential Tucker Carlson offers a counterargument: “NATO is going to collapse” as Europe will eventually blame the US for attacking its energy infrastructure and de-industrializing Europe.
Bideoa, hemen: https://twitter.com/i/status/1696754829001936907
oooooo
Getting ready to #UNGA78: No alternative to political and diplomatic settlement of Middle East and North Africa crises: 
peaceful resolution; based on provisions and norms of intl law; taking into account interests of all parties involved; 
no external interference. Russia’s position in full: https://mid.ru/ru/foreign_pol
oooooo
Algeria partners with China for construction of 6,000km railway lines
Algeria partnered with China to construct an expansive 6,000 kilometers of railway lines within Algeria, a move lauded by Algerian President Abdelmadjid Tebboune as pivotal in advancing his country’s socio-economic progress.
Earlier this month, Tebboune said that strengthening the railway sector is the “best guarantee of development”, stressing that “our Chinese friends have agreed to this project, which will cover a distance of around 6,000 km.” The aim is to facilitate the exploitation of mines, promote trade and create economic vitality in Algeria.
A member of the Algerian parliament said the project will connect all cities and regions in Algeria, and also pave the way for economic development in several African countries.
oooooo
Statements on Taiwan’s independence that appeared in a document published by the UK House of Commons Foreign Affairs Committee do not correspond to reality, Chinese Foreign Ministry Spokesman Wang Wenbin told reporters:
oooooo
George Galloway@georgegalloway
INTERVIEW: The whole African continent is excited about BRICS, says African Stream’s Ahmed Kaballo. But the rescinding of the invite to Putin has put a downer on the actual event Follow
Bideoa, hemen: https://twitter.com/i/broadcasts/1BdxYyqPzLLxX
oooooo
Maria #Zakharova: The EU uses political & economic pressure & blackmail to induce Western Balkan countries to join its aggressive political line towards Russia. 
They want the accession countries to share collective responsibility. https://tinyurl.com/yh7kzeed
oooooo
Russian Foreign Minister Sergey Lavrov will head the Russian delegation at the Group of 20 summit in India at the request of President Vladimir Putin, Russian Foreign Ministry Spokeswoman Maria Zakharova told TASS: https://vk.cc/cqvCbu
oooooo
Scott Ritter: Ukraine’s Fate Sealed Long Before Failing Counteroffensive
oooooo
Gogoratzekoa! Scott Ritter: Discusses The Responses He’s Received From His Recent An… https://youtu.be/dKlsRpBXXrg?si=eoy5M-5lWEpcGC5F
Scott Ritter: Discusses The Responses He’s Received From His Recent…
SOURCE: BILLY BOBhttps://youtu.be/UnZU4n9lurg?si=4cMU3hByE2hD51InOrder Scott Ritters Book @https://www.claritypress.com/book-author/scott-ritter/Analysis on …
oooooo
Western countries can no longer afford to integrate Ukraine into NATO, Hungary’s Prime Minister Viktor Orban said in an interview with Tucker Carlson: https://vk.cc/cqwAFb
oooooo
Post-BRICS Hybrid War in effect. NATOstan, DARPA and usual suspects against the Heavenly Horses. Much of it playing… In the White Room! Don’t be waiting in the dark where the sun never shines.
oooooo
BREAKING: COUP IN GABON
Military leaders have seized power in Gabon – saying the presidential elections in the country lacked credibility.
Results announced on Wednesday declared Ali Bongo won a third term with just under 64.27 per cent of the vote. Borders have been closed, and all institutions dissolved.
“Today, the country is going through a serious institutional, political, economic and social crisis,” an officer said on TV channel Gabon 24. He was flanked by a group of a dozen army colonels, members of the elite Republican Guard, regular soldiers and others.
Gabon has been under the rule of the Bongo family for over five decades, and the dynasty is notoriously allied with the West, backing UN sanctions and a no-fly zone against Gaddafi’s Libya.
Bongo Snr, the incumbent’s father, famously said, ‘Africa without France is like a car without a driver. But France without Africa is like a car without petrol.’
The family’s been dogged by corruption claims, living lavish lifestyles in the poverty-stricken country.
However, there was a strain on French-Gabon relations before the coup. Bongo’s government banned French media outlets like RFI and France24, citing ‘a lack of objectivity and balance’ in election coverage. Considering how long Paris has backed the Central African government, could the Bongos have finally outlived their usefulness?
The biggest question is, is the coup a result of the aspirations of the people of Gabon or the government of France?
We’ll keep you updated on the developing story at African Stream.
#Gabon2023 #GabonCoup #GabonElections
The US has announced a new $250 million package of assistance to Ukraine including HIMARS and artillery rounds, US Secretary of State Antony Blinken said in a statement: https://vk.cc/cqvTib
oooooo
A popular front coup in GABON just ousted the French-installed leader Ali Bongo. This follows similar coups that recently took place in Niger, Mali, Guinea & Burkina Faso.
Bideoa, hemen: https://twitter.com/i/status/1696860872566612209
ooooooo
Aipamena
What the media hides.@narrative_hole
21 h
How did they even convince Americans that it was a good investment to dump $80 billion (and counting) into a proxy war with Russia that can never be won, at the cost of ruining millions of Ukrainian lives? It blows my mind, the monumental brainwashing necessary to turn such a… Gehiago erakutsi
Oooooo
@tobararbulu # mmt@tobararbulu
oooooo
Robert Cauneau @robert_cauneau
Aug 28 • 24 tweets
(https://threadreaderapp.com/thread/1696218568709267603.html)
The #MMT analysis shows that public debt is not a problem, ever. This analysis also applies to the Member States of the Eurozone. The fears that public debt arouses are the result of a profound ignorance of the underlying mechanisms.
Thread⬇️
1. With a fixed/convertible national currency, the “monetary base” does not include government securities, as these are claims on government reserves (gold, foreign currency, etc.), which are part of the so-called “national savings”.
2. With fiat currency (floating/non-convertible exchange rate), government securities (held outside the government) are increases in the “monetary base”, because the notion of reducing the reserves of the State (gold, foreign currency, etc.) is inapplicable to fiat currency.
3. The national currency can only be created by public expenditure. It corresponds to “Net Financial Assets”, i.e. what the private sector receives when it receives a payment from the State, which does not have to be reimbursed.
4. Public debt is the national currency created by public spending that has not yet been used by the private sector to pay taxes. It represents the cumulative (stock) of past fiscal deficits (flows).
5. In other words, the public debt corresponds to the currency created by public expenditure but which the State has not yet withdrawn through taxation. It therefore represents the net financial wealth of private sector agents.
6. Thus, when a State seeks to reduce its deficit by increasing taxes and/or reducing its expenditure, private sector savings are reduced. The fact that the state withdraws more national currency through taxes than it creates through expenditure creates austerity.
7. Public debt is therefore assimilated to everything that represents the liabilities of the State: namely the sum of cash + bank reserves + government securities. This definition is similar to that of central banks, as well as that of the ECB under the Maastricht Treaty.
8. When the State issues securities, there is no “monetary creation”, but only a change in the form of the currency, from “reserves” to “State securities”, such as a simple transfer of a deposit account which does not pay interest, to a savings account which does pay interest.
9. And, when government securities mature, there is not a “repayment”, in the sense used for private debt, but an inverse change in the form of the currency, from “government securities to “reserves”, therefore without decreasing the quantity of currency.
10. The above analysis also applies to the Member States of the Eurozone, it being specified that the financial limits which constrain these States are not technical. They are fundamentally political, therefore in reality self-imposed.
11. MMT analyzes interests not only from the perspective of the public accounts, but from that of the economy. From this angle, they are seen as contributing to the public deficit, albeit in a socially regressive way, because only benefiting the rentiers.
12. If interest is to be seen as a burden, it should be not from a financial perspective, but as a societal burden (social justice), as it only benefits those who have already money.
13. It is important to understand that if interest increases, it is because the ECB decides to let it increase. Interest rates are completely under the control of the ECB. These are political choices.
14. Draghi’s Whatever it takes in 2012, as well as the situation that has prevailed since the start of the covid crisis are sufficiently eloquent as to the fact that the level of interest rates is fundamentally a political variable.
15. Neither the level of public debt nor that of interest constrains the fiscal space of States. Indeed, the ECB can decide, when it wants, whatever the level of indebtedness of a country, that this country can continue to spend, or must default.
16. With regard to Greece:
– 2010: Public debt problem with a ratio/GDP of 130%
– Today: no public debt problem with a ratio of more than 200%
The sustainability of public debt is not an economic issue, but a political one, in the hands of the ECB.
17. The financial markets are only at work if the ECB decides so, letting them. Thus, all the rhetoric that the Eurozone Member States’ ability to spend depends on the mood of the financial markets is unfounded.
18. No scientific publication has ever been able to demonstrate a causal link between a country’s level of public debt in its currency and fiscal space. It is only a view of the mind, without any concrete basis, and/or the expression of an ideology in favor of austerity.
19. Some economists have tried it, notably Reinhart and Rogoff, with the ridiculousness that we know, because of an error in their calculation sheet, discovered later by a doctoral student…
20. There is therefore no “straightjacket” or “wall”. Public debt is not synonymous with “cancer”, but with net financial wealth of the private sector. The use of this semantics is only the reflection of a profound ignorance of the system.
