From time to time. I'm going to take a look at what Kevin posts and then put them under the lens of MMT.
Move Kevin's narrative away from the false government finances operates like a household budget anology introduced by the financial sector
Kevin is talking about the Scottish budget deficit. Which he says is £10 billion and then performs the any right wing think tank trick and says that is £1,900 a year for every man, woman and child in Scotland.
The narrative Kevin is using is wrapped in neoliberal language, framing and propaganda is that each man, women and child in Scotland owes £1,900.
Owes it to who ?
The bogeyman, because Kevin can only create bogeymen, women and children and then dress them in neoliberal clothes
It's not difficult to see what the difference is between MMT and the mainstream what all the debates are about.
MMT say it is unethical and immoral in a civilised society to keep a group of humans unemployed just to control inflation when the government could give them a job
The mainstream say govts are not to be trusted and thus we need to hand all the policy decisions to a bunch of unelected technocrats at the BOE and on top of that we need councils full of unelected technocrats to decide policy.
Unemployment is collateral damage to achieve that
SWL and Portes are old-fashioned political lobbyists who dress themselves up in the garb of credentialism.
SWL Scottish independence paper proved that beyond any shadow of doubt.
The adult technocrats then make sure everything is ok – for the new aristocracy.
Mainstream economics has debunked what is in this book for years now. There are no serious economists working in universities today that would support the view that Martin has helped to publish. Infact the Bank Of England would not recognise the claims in the book.
What governments of all stripes need to know is if you increase the budget deficit by X will it cause inflation ?
In other words when governments increase the non government sector surplus will inflation happen ?
The IFS and the OBR cannot tell you the answer to this question
This all operates exceedingly smoothly is evidenced by a relatively stable overnight interbank interest rate—even with wild fluctuations of the Treasury’s budget positions. If there were significant hitches the rate would be unstable.
How many humans became unemployed. How many humans became underemployed, how many humans had to move from their freinds and family to find a job, how many humans got divorced, how many humans ended up on opiates,
How many humans lost their homes, how many humans went to jail, how many children were affected, how many humans took their own lives, how many humans couldn't afford food, how many humans became alchololics, how many humans turned to petty crime, who haven't worked since
STOP !!!!!! and THINK !!!!
If a job guarentee had been up and running since 2003 and when the financial crises hit in 2007 how many humans would NOT have been affected ??
What could a country do with pensions that uses a fiat currency-flexible exchange rate system ?
First of all you have to identify the problem and it aint about money. The major flaw in this main stream dialogue is what is called a ‘fallacy of composition’
They say somehow we have to ‘save’ public funds today for the future, what we must cut back on are expenditures today, which does nothing but set our economy back and causes the growth of output and employment to decline.
Every mainstream economist will agree that there pretty much isn’t anything in the way of real goods we can produce today that will be useful 50 years from now.
I've never read it but Is the GERS report comparing apples and oranges ?
Now this nonsensical view of the way the monetary system operates is based on the same fundamental building blocks as views expressed in the GERS report.
None of these arguments are remotely correct in a fiat monetary system. My arguement is not about wether the GERS figures are accurate. My arguement is if Scotland becomes independent the GERS figures are of no help to anybody.
A very clever magic trick by the charlitans of all colours who use the GERS figures in whatever form as a starting platform to discuss the success or failure of an independent Scotland. A propaganda triumph worthy of Pathe News for those who say indy is not an option.
The neo-liberal era has seen a major reduction in Departmental capacity to design and implement fiscal policy – given the obsession with monetary policy and the major outsourcing of services to the private sector.
It is becoming clear where the household budget anology came from. We are beginning to understand the framing, language and propaganda used to portray the government budget and the words deficit and surplus.
The lobbying arm of the financial sector.
When we are ready to give MMT presentations to the public in the UK. We now have the tools available to us to the answer the question.
Why do governments lie about the monetary system and why did this change happen ?
It was funded by Wall Street and the City of London. We use Michael Hudson's work to explain it. We now have a complete story to tell that squares the circle.
It is our playbox so you play by our rules. So what does the playbox look like?
A Functional finance playbox not a sound finance prison
1) The central bank is constitutionally barred from dealing in the foreign exchange markets, and margin trading is banned.
2) Banks can only lend (create money) for the capital improvement of the country. Currency traders then know there will be no ‘patsy’ in the market and no leverage available to them, So they can't attack anything. They would run out of liquidity. To sell the currency you have it.
And take about Oil of few paragraphs is the GERS report.
Nicola thinks she's running something other than a glorified county council. The difference is that the bank account the Scottish government uses will bounce cheques when they reach their overdraft limit. Payment authorisation would be refused without HM Treasury permission
Just like any other local county council area in the UK.
The UK does the tax collection across the UK. If you did the accounts for North Yorks County Council you would find it too has a 'deficit' that is filled by the block grant and whatever 'borrowing' HM Treasury permits.