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Patricia
@PatriciaNPino
, 3 tweets, 1 min read Read on Twitter
What was that? MMT only applies to the US? Well, it now applies to Japan too.🙃

Japan has been a poster child 4 MMT. Its advocates predicted decades ago that Japans HUGE Govt Debt was not the problem mainstream economists thought it was.

Quite something
wsj.com/articles/were-…
I mean it has been fun to watch.
This from 2013.

“Run for the hills! Japan will go bankrupt in the next 24 months”

cnbc.com/id/100391704
And stark a reminder of mainstream economics inability to predict anything right.
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Patricia
@PatriciaNPino
@CatatonicUk @meadwaj @richmondpapers @NeilSalter4 @DaveRHumphreys @CarolineLucas @BBC @davidgraeber Ok, this will take a few tweets, forgive me if I say something you already know;

#MMT At it’s core it’s just a description of how money works. How money was created as a means for authorities to command resources (in the old days kings etc, but now more democratic govts).>
@CatatonicUk @meadwaj @richmondpapers @NeilSalter4 @DaveRHumphreys @CarolineLucas @BBC @davidgraeber It focuses on the crucial role of fiscal policy in the economy (The money creation which is under democratic control). And It also outlines the differences between Govts who issue their own currency, and those that don’t.

There are prescriptive aspects, e.g. the job guarantee,>
@CatatonicUk @meadwaj @richmondpapers @NeilSalter4 @DaveRHumphreys @CarolineLucas @BBC @davidgraeber the curtailment of bond issuance, capital controls. These were formulated to ensure that govt can use fiscal policy to maximum effect. This is why for example, MMT rejects the monetarist view of relying on int rates to control inflation, preferring >
Read 7 tweets
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Patricia
@PatriciaNPino
Greece was never bailed out. They bailed out German & French banks, who held Greek debt. This stabilized Germany & Frances economies post crisis, while the Greek ppl were punished w severe cuts and forced to run a fiscal surplus. They never saw the money.
The bailout allowed Germany & French Govts 2 keep political face in their countries (They had lost control of banks lending in the run up to the crisis), While presenting Greece as lazy & irresponsible.

They also promoted the narrative that they were “saving” Greece.
The Greek were forced to accept the terms of the bailout with threats of closure of banks, immediate cut of subsidies,etc. When ElectedGovts didn’t comply, They replaced them.

Hundreds/thousands have died & Greece’s public assets have been pillaged by profit hungry corporations
Read 4 tweets
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Patricia
@PatriciaNPino
Bill Mitchell on Labours Fiscal Credibility Rule. Part 2/3. bilbo.economicoutlook.net/blog/?p=40071
Thus the Rule is incompatible with progressive policy targets. Namely, Full Employment. (Unless u believe in neoliberal NAIRU).

What worries me most is that Labours advisers seem more concerned with fiscal balance than progressive policy. Would they break the rule if necessary?
And if they break the rule. How would they counter Tory narrative that “Labour is fiscally irresponsible” when it’s breaking its own self imposed rules?
Read 3 tweets

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Citizens' Media TV 🦉🌹
@citizensmediatv
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.

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"out of control inflation,"
dramatically raised taxes,
"wasted taxpayer dollars,"
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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."
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Thomas Fazi
@battleforeurope
[Thread: 1/11] Yesterday was the day #MMT officially went mainstream, courtesy of @bhgreeley at @ftalphaville: ftalphaville.ft.com/2019/01/16/154…. Here are the highlights of that historic article:
[2/11] @bhgreeley: “There is nothing inherently socialist about govt debt. A govt can issue debt to pay for whatever it likes: to fight a war, to lower taxes ... to soften the sharp edges of a recession. The US has, in fact, issued debt to pay for all of these things”.
[3/11] @bhgreeley: “American politicians say that public debt crowds out private investment, that it's unsustainable and will turn the country into Argentina. Or Greece. Or now Venezuela. But regardless of what they say, what American politicians do is vote for more debt”.
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Sean Bryan
@seanpbryan
I had never heard of Modern Monetary Theory #MMT until this @planetmoney podcast. It piqued my interest and I started reading more about it. It has completely transformed the way I view govt. spending and what govt. should be doing.
npr.org/sections/money…
1/4
I'm still trying to understand a lot of this, but my big takeaways are:
1) Taxes do not fund federal govt. spending; the govt. creates money and then removes it through taxes. So, it is impossible for the federal govt. to run out of money; it cannot default.
2) A federal deficit means a private sector surplus, and a federal surplus means a private sector deficit (ignoring foreign trade). In order for you and me and all other private individuals and companies to have savings, there must be a govt. debt!
2/4
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Christophe Barraud🛢
@C_Barraud
🇨🇳 #CHINA Q3 GDP Y/Y: 6.5% V 6.6%E (slowest growth since Q1 2009)
*NBS spokesman Mao Shengyong said that the international situation was bringing “downward pressure” on China.
*Link: bloom.bg/2RVX1ZA
🇫🇷 🇪🇺 🇨🇳 French tire maker Michelin warned of declining sales in Europe and #China in the second half of the year, dragging down shares of its competitors in the U.S. and Europe - Bloomberg
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bloomberg.com/news/articles/…
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Citizens' Media TV
@citizensmediatv
"Then why does the military budget keep going up as social programs keep getting cut?"

Now that’s a good question.

[thread]

#LearnMMT
You & I require income (a paycheck) before we can spend. We must choose & prioritize what we spend each $ on. Food or medicine? Can’t afford both this week. Or...gotta chop that pill in half in order to buy bread & eggs to feed our kids. Hard choices. One or the other. Either or.
Before the United States went off the gold standard in August of 1971, the federal government was exactly the same way: they needed income (taxes, borrowing) before they could spend on federal programs.
Read 33 tweets
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Buster Hyde USMC/Ret
@BusterUSMC
**The Fall of California**
The “Golden State” Goes Brown.

1. California isn’t just a place, but a dream.
2. In the American mythos, California represented the end of the journey, the land where the dispossessed & forgotten could start again, where “Okies” who fled the Depression searched for relief & veterans of the WWII discovered a middle-class paradise.
3. And what’s most incredible is that, for a time, that is exactly what California, USA was for so many American Citizens.
Read 90 tweets

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