QE is absolutely NOT printing money. It is swapping forms of debt. To quote @wbmosler, "it is effectively a tax" .

The Federal Reserve is not just randomly "printing money". That is literally NOT how it works.

1/x
The Federal Reserve is a score keeper and they manage interest rates. They manage private indebtedness. They manage bank lending and clearing payments. They are not Willy Nilly printing money. That is called monetary policy.
When you are talking new money creation in the form of net financial assets, not loans, you are talking fiscal policy and ONLY Congress can authorize that. That means new money creation out into our economy through government spending.
They don't commission the "printing of cash" so it can sit in a bank waiting to be borrowed. They issue instructions to the Fed who then creates deposits into the Treasury's accounts where it is then "spent into existence" and it never has to be paid back EVER.
The national debt = the net money supply or the sum total of every untaxed government spent dollar in existence today.

I am probably yelling into my pillow or staring at a brick wall trying to make folks understand this... But it is really not that tough.
The dollar is merely a tax credit. It is a unit of account. Like an inch or a pound. You measure debt in US Dollars by measuring tax liabilities in US dollars or whatever your nations unit of account is.

Make sense?

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More from @sdgrumbine

19 May
Cash is not real resources.

Real Resources are like Housing, Healthcare. Education. Food. Transportation.

If we do not get this, then let's go one step further.

THE FEDERAL GOVERNMENT CANNOT GO BROKE WITHOUT AN INTENTIONAL ACT OF CONGRESS.

1/x
The Federal Government can make any payment for anything that is for sale in US Dollars.

Regular people cannot.

The Federal Government can absorb any cost hikes, inflationary pressures and has the means to force production to meet demand.

Regular people cannot.
So if you want to come to me with a UNIVERSAL Basic Needs proposal, you have my attention.

If you want to advance a UNIVERSAL Basic Income scheme, No thank you.
Read 4 tweets
18 May
For anyone who thinks MMT (Modern Monetary Theory) is a subject that can be put off or ignored.

1. Because of that mindset we do not have healthcare in the USA.

2. Children are burdened with 1.6 trillion in student debt
3. We do not have relief payments to families in the midst of a pandemic. No nationalized Payroll. No job guarantee.
4. Families are breaking up over Economic insecurity
5. We have no right by law to an education
6. We do not have paid family and medical leave.
7. We have no job guarantee
8. Banks are putting us in private debt because the Federal Government isn't spending on the people
9. Million die from hunger, exposure, preventable illnesses, unemployment and suicide
Read 5 tweets
18 May
Here are some of the major problems we face:

1. We are dealing with austerity and our movement hates to talk economics.

1/x
2. The powers that be understand we are ignorant of macroeconomice and exploit that weakness to maximum effect.
3. Many in the movement have created false narratives about money, the Fed, banking, the role of federal taxes and are so partisanly loyal that they cannot function unless their party, favorite politician or media tells them what to do.
Read 8 tweets
16 May
I really hate the 4 things and they are 4 things I think most of us feel, have seen or had happen to them:

1/x rant
1. When people show off their good fortunes while people suffer. "look at me, aren't we great?" "I'm so blessed to have lots of money and family support so we can do whatever..." "Look at the pool." "This is us at a 5 star restaurant"
2. When people see the shallow celebration and envy them while resenting the people in their own homes wondering why these good projects aren't done at their own home. You know the type. Trust me. They aren't rare. Sadly.
Read 8 tweets
12 May
One of the most important aspects of the economy is the role of imports vs exports and which is more "desirable".

1/x
On paper, accounting shows us that exports are a real cost and imports are a real benefit.
Trading paper for real resources is a win based on accounting identities and truth is, under blue sky, the world is stable kind of circumstances relying on the accounting identity is a perfect way to see them.
Read 7 tweets
4 May
We have a major divide on the side of good. Some good guys think that their blood, sweat and tears they spend fighting the good fight makes the bills they pass unassailable even if it leaves millions out in the cold because they see their efforts and feel that is progress.
The people left behind cry out "hey, I got left behind and I don't want to die either!" And that juxtaposition between those who fought for and won incremental progress take offense when the people that are left hurting cry out and say they aren't satisfied. A tragedy isn't it?
That whole union ethos of an injury to one is an injury to all needs to be true north. It needs to be our guide post. No backslapping as we get some off the Titanic and watch the rest drown.
Read 6 tweets

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