Discover and read the best of Twitter Threads about #learnmmt

Most recents (24)

"Inflation the Boogeyman"

versus

Inflation in reality

[#LearnMMT THREAD v1]

WARNING: Just by **reading this thread** you (yes you) are causing a tidal wave of inflation that no plumber can ever fix.

Good job. 👍
2/ Those who do not understand #MMT, or do not want you to understand MMT, will say things like:

"Creating money causes inflation. Creating it beyond that causes hyperinflation."

So, creating one dollar 👉Inflation!

Daring to create that second dollar 👉 **hYpERinFlATiOn**!!!
3/ The idea that

“Creating money causes inflation."

is as ridiculous as saying

“Birth causes crime."

I mean, all criminals are born, amiright?
Read 23 tweets
Taxes don’t pay for things.
The govt creates money when it spends & destroys it when it taxes.
There is no money-bin where the taxes go.
People keep spinning this ‘taxpayers money’ BS bcz it’s too mind-blowing to #learnmmt
Our sovereign currency is a blessing we ignore
#ausvotes
The great difficulty #MMT (Modern Monetary Theory) faces is the inertia of old dogma.
MMT explains how sovereign currencies have the ability to build their attendant nation’s communities by investing in people
It’s just a way of paying for things by changing ‘the economic levers’
Most economists still act as if our currency is still tied to the Gold Standard. It’s not but they like to avoid speaking to this reality.
You can imagine them as one would a pre-science ‘man of medicine’.
#learnmmt
Read 13 tweets
Vamos a repasar todas las tonterías que dijo Huber en su lamentable entrevista para @Planeta_Futuro
1. Según Huber la TMM dice que ""El gobierno" crea dinero como bonos soberanos". No. Los bonos soberanos no son dinero, son un instrumento para retirar reservas del sistema.
2. No, tu vecino no crea dinero cuando le dan una hipoteca. Pero el gobierno inyecta reservas en el sistema cuando gasta. El acto de emitir deuda pública es posterior a la creación de dinero. Los bancos usan las reservas creadas por el gobierno para comprar esos títulos de deuda.
3. Hoy todos los gobiernos dotados de soberanía monetaria emiten dinero. Primero cuando gastan, luego lo retiran emitiendo títulos de deuda pública o cobrando impuestos, pero luego el banco central se ve obligado a comprar esos mismos títulos para volver a inyectar dinero.
Read 20 tweets
Ten #MMT tips to remember on #TaxDay:
1. Federal #taxes don't fund federal spending, so let's #decouple these two important tools.
2. Taxes offset #Government spending.
3. It's a matter of #logic: #dollars must be spent into existence (by the Gov) first, in order for us to use some of those $ to pay taxes
4. #Taxing for #revenue is for local states/municipalities, not the #sovereign issuer of the #currency.
5. Taxing excessive wealth protects #democracy from #Oligarchy and protects us from abusive market power
6. Taxing #pollution & #speculation to reduce such activities, not to "fund" #healthcare and #education.
Read 6 tweets
1/ Imagine there's a billionaire with three children, but she only provides them with (just) enough food for two. They come to her to complain and ask for more, but she responds with, "I know, I know! But how‘re you gonna pay for it?"

(Yes, this thread *is* related to👇.)
2/ Of course, the children have no choice but to start fighting with each other. There's simply not enough food to go around, and eating is a biological necessity! Even though they are **brothers and sisters**, they have to be terrible to each other in order to survive.
3/ Even though she could easily provide for all her children, she chooses instead to shame and punish them for being horrible to each other. [How stealing a loaf of bread for a starving family forms the basis of Les Miserables] bahaiteachings.org/the-lesson-of-…
Read 18 tweets
You know how we artificially back our currency today? Taxation??? No, that is substantively how we do it today. No, the real answer is austerity. We back our currency by forced unemployment and misery.
What in the world would make "progressives" more focused on false evidence appearing real (F.E.A.R.) than the truth?
One can only speculate as the the "why" behind it.
Read 7 tweets
1/ #LearnMMT song parody: “I Am The Very Model of a Modern Monetary Theory. [THREAD v1]

Sung to the tune of “I Am The Very Model of a Modern Major General" from Gilbert & Sullivan's The Pirates of Penzance. Here’s a fantastic performance of the original:
2/ Notes: The full length verse is in the structure "main verse (long) 👉 chorus 👉 short verse." This parody mixes it up a bit.

Key:
🎶 = Start of main verse (long)
🎵 = Chorus
🎼 = Post chorus verse (short)

A crude version sung by me is at the end of this thread.
3/ 🎼 The... very model of a Modern Monetary Thee-o-ry.
Where all fed spending’s always paid for with created currency.
Which logically extends that taxes cannot pay for anything.
Read 22 tweets
1/ *Many* resources for getting started with #MMT.

[#LearnMMT THREAD v.2.01]

In a sentence: MMT is non-fiction macroeconomics.
2/ Here is an excellent single article explainer of #MMT by @StevenHailAus, economist and lecturer in Economics, University of Adelaide: theconversation.com/explainer-what… #LearnMMT
3/ Here is an excellent single article explainer of #MMT by @John_T_Harvey, professor of Economics at Texas Christian University (@TCU): forbes.com/sites/johnthar… #LearnMMT
Read 19 tweets
1/ *Many* resources for getting started with #MMT, for those who know nothing about it.

[#LearnMMT THREAD v.2]

In a sentence: MMT is non-fiction macroeconomics.
2/ Here is an excellent single article explainer of #MMT by @StevenHailAus, economist and lecturer in Economics, University of Adelaide: theconversation.com/explainer-what… #LearnMMT
3/ Here is an excellent single article explainer of #MMT by @John_T_Harvey, professor of Economics at Texas Christian University (@TCU): forbes.com/sites/johnthar… #LearnMMT
Read 19 tweets
1/ What is money?

What gives the money value?

[#LearnMMT THREAD v.1]
2/ The purpose of a government is to

compel its people

to use the real resources at its disposal for the benefit of society (what they define as “beneficial”).

Money, such as the United States dollar in the US, is the incentive given to the people for doing so.
3/ In other words: Money is a tool that the federal government uses to

provision

itself. Examples of what the government needs its people to do:
Read 14 tweets
1/ Where does money come from?

[#LearnMMT THREAD v.1]

Money: US: US Dollar
U.K.: British Pound
Australia: Austrailian Dollar
Canada: Canadian Dollar
China: Yuan
Japan: Yen
...
2/ In fiat currencies, there are two kinds of money:

1. High Powered Money (HPM), or "currency."
2. Bank loans, or "credit."

This current thread discusses only "currency." To learn about bank-created money (where banks are "franchised" by gov'ts):
3/ In the United States, before the first US dollar was created, no one could spend, save, invest, or pay their taxes in US dollars. This question, "Where does money come from?" must be broken into two parts:

1. Who created it? (And how?)
2. Who authorized its creation?
Read 19 tweets
Austerity is a con. Tories driving it KNOW there is a more equitable way to run the economy.
It's #ConsciousCruelty because they also know their massive cuts to public services & infrastructure, causes suffering & death. They don't care. 1\6
Austerity is corruption because not only do Tories slash public funding, they also set up schemes that pump huge sums of public money to a handful of executives.

Remember Jeff Fairburn? He's just the one from the 'help-to-buy' gravy train. 2\6

amp.theguardian.com/business/2019/…
Under Tory austerity, if you've a failing company mismanaging critical public contracts, but have access to Tory ministers; No problem. Tories got your back.
3\6
Read 6 tweets
1/ Repositories of #MMT scholarship and academic papers.

[#LearnMMT thread v.1]

neweconomicperspectives.org/mmt-scholarship
2/ Repositories of #MMT scholarship and academic papers: By @GowerInitiative: gimms.org.uk/tools-and-reso… (direct link: zotero.org/groups/2251544…)
3/ Repositories of #MMT scholarship and academic papers: Regarding the Federal Job Guarantee and involuntary unemployment:
Read 6 tweets
1/ How are you going to pay for it?

[#LearnMMT THREAD]

Our federal representatives, media, and so-called experts incessantly tell us that it is

not
possible

to give us the things that would help us

not die,
suffer,
go bankrupt, or
be unemployed.
2/ Our representatives tell us that they

can't

give us these things, even though they

really

want to.

They can't because, they tell us, if they dared even try, it would cause

"out of control inflation,"
dramatically raised taxes,
"wasted taxpayer dollars,"
3/ and "the ballooning debt and deficit would bankrupt our grandchildren when the bills came due."

They tell us that the only thing more important than helping the people

not die,
suffer,
go bankrupt, or
be unemployed.

is to be "fiscally responsible."
Read 22 tweets
1/ The

federal deficit

is the amount of money spent by the government in a single year, minus what it collects back in taxes.

$3 trillion 👈 spending
- $1.7 trillion 👈 taxed
———————————————
$1.3 trillion 👈 the federal deficit

[#LearnMMT THREAD v2]
2/ The *size* of the federal deficit is not what’s important. The only thing that matters is what our government

chooses to
do,
who they choose to do it
for,
and who they choose to
not
do it for.
3/ The *size* of the federal deficit does not matter. The only thing that matters is

how moral,
equitable,
efficient, and
INFLATIONARY

their spending is.

If we have the resources to do it,
do it.
If we don’t,
don’t.
Read 14 tweets
1/ The

federal deficit

is the amount of money spent by the government in a single year, minus what it collects back in taxes.

(The national debt is the sum total of every deficit since the country began.)

[#LearnMMT THREAD]
2/ The *size* of the federal deficit is not what’s important. The only thing that matters is what our government

chooses to
do,
who they choose to do it
for,
and who they choose to
not
do it for.
3/ The *size* of the federal deficit does not matter. The only thing that matters is

how moral,
equitable,
efficient, and
INFLATIONARY

that spending is.

If we have the resources to do it,
do it.
If we don’t,
don’t.
Read 12 tweets
1/ If you really want to #LearnMMT, then you need to understand reserve accounting. [THREAD]

You and I have a bank account at a local bank.

The bank (via its corporate headquarters) has a bank account at the central bank (CB). The CB is the BANK’S bank. There is none above it.
2/ Let’s start from our point of view. I have a bank account at Wells Fargo (WF) on Main Street in my town. A bunch of individuals and local business have accounts at this local WF branch. Let’s say there’s a total of $300 million in all the bank accounts at this one branch.
3/ In some other more wealthy town, there’s another local Wells Fargo branch that has a total of $2 billion in bank accounts for all their individual and business accounts.
Read 37 tweets
This State has always been synonymous with the interests of the English Norman-Westminster/City of London Regime via the issuance, control and taxation of ‘money’ and the violent separation of the people from the natural means of meeting their needs...
..Shaken slightly between 1945-1979: it regained control with the neoliberal project and the systematic proliferation of conservative metaphors. Its Achilles Heel is the obfuscated and inverted fact of Spend and Tax (by Tax to Spend myth) with its supporting toothless bogeymen...
..‘Deficit' and ‘National Debt’. Only awareness of these major MMT insights could subvert this process to be utilised explicitly for the public good - to address the naturally evolved physical, emotional and intellectual needs of us all...
Read 4 tweets
1/ Taxing the rich is like audio compression.

#LearnMMT [THREAD v.3]

Here is about ten seconds of an interview where the interviewee is very soft and the interviewer is extremely loud in comparison. (It's a recorded phone call.)
2/ While listening to this, every time the interviewee speaks, you need to turn the volume up to max in order to hear them. And when the interviewer speaks, you need to jump at the volume knob to turn it all the way down. Otherwise you blast your ears and break your speakers.
3/ The problem is not that the soft parts are not loud enough. The problem is that the loud parts are just too damn loud.

The solution is not to increase the volume of the softer parts, but only to decrease the volume of the excessively loud parts.
Read 17 tweets
1/ Every dollar of federal spending is, and has always been, paid for with created currency. This logically extends to "federal taxes don’t – and can’t – fund federal spending."

Federal taxes are still critical to our society.

#LearnMMT [THREAD]

2/ Overview: Federal taxes:

1. "Drive money." (People must do as asked, in order to get money, in order to pay taxes. Otherwise they go to jail).
2. One of many tools for controlling inflation.
3. A way to impose moral decisions (higher to discourage, lower to encourage).
1. Federal taxes "drive money."

The value of the dollar does NOT come from "the full faith and credit of the United States government." It comes from the fear and avoidance of severe penalties if one does not pay their federal taxes in the US dollar. neweconomicperspectives.org/2011/07/mmp-bl… 3/
Read 16 tweets
1/ Taxing the rich is like audio compression.

#LearnMMT [THREAD]

Here is about ten seconds of an interview where the interviewee is very soft and the interviewer is extremely loud in comparison. (It's a recorded phone call.)
2/ While listening to this, every time the interviewee speaks, you need to turn the volume up to max in order to hear them. And when the interviewer speaks, you need to jump at the volume knob to turn it all the way down. Otherwise you blast your ears and break your speakers.
3/ The problem is not that the soft parts are not loud enough. The problem is that the loud parts are just too damn loud.

The solution is not to increase the volume of the softer parts, but only to decrease the volume of the excessively loud parts.
Read 18 tweets
Pssst ... Pass it on...

70% of Americans want #MedicareForAll
60% want a #GreenNewDeal
80% want big $$$ out of politics
71% want to raise the minimum wage
61% want to cut military spending
60% want tuition-free college
82% want paid maternity leave
76% want to tax the rich more
Correction: 81% of Americans want tuition-free college at public state schools. freecollegenow.org/poll_econopp_f…
Read 18 tweets
Your wellbeing and healthcare crucified upon a cross of gold that doesn't even exist anymore.
#M4A #MMT
theintercept.com/2019/02/05/nan…
"Primus, like Pelosi, is a well-known deficit hawk, and both subscribe to the argument by the late Pete Peterson that the debt and deficit are among the gravest threats facing the country... 2 of Primus’s 5 objections to single payer...related to such alleged fiscal challenges."
The public is slowly waking up to the fact that its future and welfare are held hostage by a profoundly destructive ideology of fiscal rectitude. #LearnMMT #MMT
Read 3 tweets
Some basics.

The US Dollar is a tax credit.
It is a unit of measure.
You can't run out of inches
You can't run out of numbers
The government can't run out of dollars...
unless it purposely, politically chooses to.

1/x
Since the US Dollar is a mere tax credit and a unit of measure, it is neither precious nor permanent.

A dollar is an IOU.
When it is spent into existence a debt is born.
When it is taxed out of existence a debt is washed away.
All money is debt.
So reducing the national debt means reducing the national money supply.

Dollars are not reused
A dollar is spent once into existence.
It circulates within the economy
Is destroyed once it is returned as a tax.
Read 13 tweets

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