Rohan Grey Profile picture
Ass't Prof. @WillametteLaw. President @TheMMTNetwork. Network Manager @FreedomBoxFndn. Vice-Chair (Privacy) Digital Currency Global Initiative @Stanford/@ITU
Joseph M. Firestone #DumpTheIncumbents #M4A #MMT Profile picture Mark Flowerchild #MMT #RealProgressives Profile picture steven devore Profile picture Postman Profile picture JustHangin Profile picture 6 added to My Authors
May 13 12 tweets 3 min read
There have been a lot of #notallstablecoin takes flying around from crypto advocates in the last few days. It's worth reiterating a few points from the last time we were going around on this topic.

First, while there are obviously differences between models of stablecoins, and Specific stablecoins - whether there's a single central issuer, whether it's backed by collateral, what kind of collateral, whether it relies on an algorithmic or actively managed stabilization approach, etc - these differences are all focused on the "backing" side of things.
Apr 25 5 tweets 1 min read
This is simply not true. It simply codifies a particular kind of human error (presumption that inelastic currency is pro-social) and chooses not to subject that error to the same degree of political/social scrutiny as governments. If you start from the political belief that Austrian econ/hard money/sound finance is optimal, then sure, all you're doing is locking in that one political decision and *then* letting people do their thing on top. But that's a big "if"! One I would say the history of democracy is
Jan 30 8 tweets 3 min read
I enjoyed the opportunity to chat with @StephanieKelton about this Jon Stewart-Tom Hoenig exchange, which is very illuminating.

stephaniekelton.substack.com/p/jon-stewart-…

But equally cool was seeing Jon Stewart do a 180 on his previous skepticism of #MintTheCoin. Back in ~'13, Stewart was very dismissive of the trillion dollar coin, as seen in this back-and-forth w Paul Krugman.

businessinsider.com/jon-stewart-vs…

I'm not a fan of Krugman nor do I have much intrinsic respect for the economics "Nobel Prize", but it was notable in these interactions
Jan 20 6 tweets 2 min read
The Fed's report on CBDCs is out, & predictably, on the most important issue of all - protecting/maintaining cash-like privacy - there is no analysis, just assertion, that anonymity is non-viable b/c greater scale/velocity of digital. Very disappointing.

federalreserve.gov/publications/f… ImageImage I've made this point before, but it's important to emphasize: the Fed is not statutorily responsible for issuing cash, nor does its mandate or expertise extend to issues of preserving civil liberties or balancing security/privacy concerns. Its opinions/preferences are not gospel.
Jan 19 7 tweets 5 min read
@conorsen Plenty of MMTers, including myself, have proposed a) voluntary/mandatory savings programs, b) auto-fiscal stabilizers, c) direct credit regulation (as an alternative form of monetary policy to interest rate hikes). Why are those not sufficient? Believing inflationary risk is real @conorsen does not require believing traditional approaches to managing inflation risk are good/appropriate.
Oct 4, 2021 5 tweets 2 min read
This piece has four major errors.

1. Prates claims Fed only purchases Tsy securities. But that’s incorrect. The Fed buys both notes & coins from Tsy today, and then sells them onto commercial banks and others, who sell excess coins back to the Fed.

newyorkfed.org/aboutthefed/fe… 2. The Fed is also legally the Tsy’s fiscal agent, and is required to accept monies deposited by the Tsy. There’s no indication that excludes coins and the law is quite clear if Tsy and Fed disagree on scope of that authority, the law sides with Tsy Sec.

rohangrey.net/files/coinage.…
Oct 2, 2021 6 tweets 2 min read
There's a much deeper rot in the practices and culture of central bank governance than many are willing to admit Easy to dismiss this as a one off, a bad apple, even a sign of the need to tighten up around the edges. But it's deeper, there's a more fundamental legitimacy crisis at play around the technocratic presumptions of central bank dominance and this feeds right into it.
Oct 1, 2021 10 tweets 3 min read
Who said it?

"Even the advocates of a strict literal construction of the phrase, 'to coin money & regulate the value thereof,' while insisting that it defines the material to be coined as metal, are compelled to concede to Congress large discretion in all other particulars. The Constitution does not ordain what metals may be coined, or prescribe that the legal value of the metals, when coined, shall correspond at all with their intrinsic value in the market.

... More than once in our history has the regulation been changed without any denial of
Sep 30, 2021 4 tweets 1 min read
Youre still just displaying your ignorance. The Tsy "printing" this quantity of money doesn't do anything unless Congress actually directs it to be spent, and if Congress directs the Tsy to spend it doesn't matter whether it's via issuing tsys or coins the economic effect is same Obviously it would be a stupid idea to try to spend 30,000x GDP in one go, which is why no one is saying Congress should do that. But that has literally nothing to do with minting the coin unless you dont understand public finance like Preston.
Sep 30, 2021 5 tweets 2 min read
Currently there is a $300 million statutory "ceiling" on the law authorizing the Tsy to issue Greenbacks, ie paper currency not subject to the debt ceiling. If we removed the $300 million ceiling and say "as many notes as Tsy Sec deemed appropriate", it could print a quintillion. Just like the Tsy Sec could issue a quintillion dollars worth of Treasury Securities if/when the debt ceiling was suspended, as it has been for most of the past 8 years in between brief reauthorization-and-resuspension periods. The coin is no different, Preston just hates fiat.
Sep 14, 2021 9 tweets 2 min read
"We have no choice but to default....except of course all the choices we just don't want to consider"

For shame. Obviously the debt ceiling is stupid and should be abandoned. But as so many centrists and moderates love to point out in other contexts, sometimes political realities prevent the best-possible outcome so you have to consider what you *can* do with the power you have.
Sep 10, 2021 6 tweets 2 min read
"If the facts and the law aren't on your side, bang on the table"

But for real, this framing is so tiresome. The real battle isnt Crypto vs Big Finance, its whether we want the future of digital payments to be defined by Big Finance 2.0 or the public via democratic alternatives. I've been plenty skeptical of the crypto community, but I was skeptical of traditional finance first. Hence advocating for public banking, fedaccounts for all, publicly-issued, privacy-respecting eCash, etc. Accusing everyone who is crypto-skeptical of promoting the status quo
May 26, 2021 27 tweets 5 min read
Sound finance socialists dont like it, but it seems obvious to me that in this era, at least, at any given time/for any given center/left coalition, there is more support for progressive spending than can be 1:1 offset by the progressives taxes supported by the same coalition. The reason why we dont always see this manifest in the kind of progressive deficit politics it implies would be optimal is, of course, that some of that same coalition prioritizes concerns about limiting deficits & reducing the national debt over progressive spending commitments.
May 21, 2021 7 tweets 2 min read
It's tempting in these moments to interpreting something like "reducing price tag from $2.3T to $1.7T" in the way you might a scene from a movie where two people are haggling over the price of a rare item, or one of them providing a service the other needs to complete a quest etc But that's not what's going on here. We're talking about $600bn of investments, of projects, of money going to particular communities for particular needs, hard-won through years of organizing and advocacy, just vanishing up in smoke as a token of compromise to a hostile enemy.
May 20, 2021 9 tweets 2 min read
The current Tether drama unequivocally proves that the current stablecoin regulatory regime is not good enough.

There are two possible explanations for Tether's behavior. One is, as many skeptics (including me) have argued, that Tether is basically a massive fraud and has been engaging in shadow accounting games and offering half-truth-based public statements to extend the scam for as long as they can, while continuing to invest in all sorts of risky crypto assets and pumping the market to push their price up.

The other is that Tether's leadership
May 15, 2021 4 tweets 1 min read
One of the biggest problems with cryptoland is that the vast majority of people in it conflate technological know-how with monetary & financial system know-how.

If you don't understand how banking works, that's fine! But for god's sake stop deluding yourself and others about it. There are a lot of sovereign citizen crazies out there that have convinced themselves that they've discovered the cheat codes to The Law and the Constitution. But of course, they haven't, they're making a dumb person's idea of what a good legal argument sounds like.
Apr 15, 2021 4 tweets 1 min read
Some ppl like to criticize MMT for suggesting we can do big spending programs without 1:1 commensurate tax increases. For some, it takes the wind out of args for taxing the rich (it doesnt). Others think it's fantasy to think you can spend big w/o higher middle class taxes.

But once you get past all of rhetoric and incoherent conflation of nominal and real variables, what this critical view really boils down to is the argument that it's better for progressives to adopt a Manchin-style strategy in budget negotiations.

Apr 9, 2021 17 tweets 4 min read
Interest rate policy is:

- a blunt tool with lots of negative side effects
- by definition not targeted to the actual source of inflation
- potentially counterproductive due to contradictory effects of income channel vs price channel
- usually considered to exclusion of all else New Keynesians have for years relied on interest rate adjustments to singlehandedly manage inflation outside of the ZLB/ELB, as Jason's own thread asserted.

What's the point in acknowledging it's shortcomings if you're just going to default back to knee-jerk reliance on it?
Apr 7, 2021 8 tweets 2 min read
Watching leftists and people whose ostensible raison d'etre come to the defense of Substack by criticizing Ghost is pretty sad.

By any objective metric, a non-profit that provides a f/oss product capable of being self-hosted, and which funds the development of that product via paid hosting services, is far more aligned with progressive values re: concentrated economic power and platform censorship than a VC-funded, for-profit company that solicits big names by paying them advances, and giving them employee-like benefits without actually hiring them.
Apr 7, 2021 4 tweets 1 min read
Sorry, what? This is the free speech warrior?

Ghost is open source software capable of being self-hosted by anyone. They offer hosting services for a fee.

That is a long, long cry from intentionally soliciting & paying 'talent' in the way Substack does.

But more importantly, the idea that the problem is 'terrorists and pedophiles' may be able to publish content, rather than a large commercial platform deliberately amplifying certain prominent voices with its VC money, is the kind of argument spooks and cops use to suppress individual expression.
Apr 7, 2021 6 tweets 2 min read
I get that someone like Breyer is positionally almost required to say this kind of stuff, but to pretend like Bush v Gore didnt represent a profound challenge to the long term health of this worldview is frankly dishonest. Bush v Gore wasn't just a matter of favoriting conservative causes, it showed - similar to the Whitlam dismissal in Oz - that when push comes to shove the fiction of a clean separation between elected and non-elected branches is not enough to sustain/protect democratic values.