Bank of england keeps rates at 4%
Inflation rate is 3.8%

Hence the inflation rate is being pulled up by BoE base rates.

I'll explain this mechanism.... 1. The government is monopoly issuer of the currency, like any monopolist, it sets the price...or what is demanded in return for it.

2. If the government pays £20 for an hour of a teachers work, it is setting the price of £1 to be equal to 3 minutes of teacher time.

We are told that governments can fund in 3 ways:
- Tax people
- Borrow money from people
- Issue new money.

This is incorrect.

The only possible way is to issue new money. It is impossible to fund, using tax or borrowing.

WHY is this?..... It is because with are a debt based, fiat currency economy.

When the government receives tax money, or money from borrowing, all that happens is a number increases at the Bank of England

0.00 becomes 100000.00

How can you fund anything, with a number?

I found out about MMT, after trying (and failing) to create a virtual economy online game:

'Vodkaville' - People were supposed to visit a drinks warehouse, buy spirits / mixers, then sell them at a virtual shop, competing with other players doing the same....(1/x) The virtual 'tax and spend' economy just never worked, kept running out of money, as players hoarded it. No amount of fiddling with the parameters would fix it.

So I looked around the 'net to try and came across @wbmosler 's Seven Deadly innocent frauds of Economic policy.

Forget about the Economics behind MMT for a minute.

Instead, the heart of MMT is about power. Who has supreme power in the country?

Is it Big Business? Is it the government?

MMT shows it is the Gov. Fiat currency systems were created to give democratic control to the gov. This is really, highly important, to our democracy, that the government can do damn well what it wants.

When I see/hear progressives saying MMT is wrong, or don't need MMT, they are saying that our system, we currently have is wrong. That the power belongs in Big Business.

Let me say something about how some on the left shun MMT, because it does not address 'Capitalist Relations'.
This is entirely wrong. Indeed I think the reason that supporters are so passionate about what is, well, just an an economic theory, is because they see how MMT... knowledge can change a persons political views and understanding of the economy we have.
I believe that MMT will destroy the capitalist relations we have now, and it doesn't need to change anything to do so. It just needs to be known about.
You have to understand that the..

Let's talk about MMT and Netflix film 'Dont Look Up'. If you haven't seen it, watch it. It shows how the mainstream media can conspire to destroy any idea, any plan, anything that might be detrimental to the plans of the oligarchy in charge. (1/x)
@AaronBastani

https://twitter.com/JamesJohnTapper/status/1475782395102212103

MMT is the way it is. The more you look at the facts, the more you realise there is no other way, other way it can be. Published academic papers about MMT, spanning 25 years have been written.

And yet, right now, Googling for MMT shows this.

Why is MMT being 'canceled'?

This isn't actually MMT. However, its half way there, and demonstrates beyond any doubts at all, that the government can and does create money. Understanding of MMT is the next step, after watching this. (1/x) After watching this, a question that might be asked is how did the bank end up lending this money to the government? Well what follows is a case of accounting gymnastics designed to conceal the truth. I will outline the steps. (2/x)

This thread is for those left wing MMT deniers. They are so sure of themselves, They bluntly refuse to even engage.
I will not ask you to go read anything, or learn anything.

This is a simple logical step through why MMT is true.

@meadwaj @paulmasonnews @OwenJones84

(1/x) Indisputable Fact 1.
The government can create money from keystrokes. The bank of England has engaged on a huge amount of quantitive easing. The bank of England is owned by the government. Therefore the government can create currency from thin air.

Indisputable.

For once I am not going to talk about MMT.

I am going to talk about *mainstream* neoclassical economics.

We are told Tax's fund spending, and any spending above taxation is met with borrowing, which has to be paid back by our kids. So what does this idea logically lead to? So the premise of this, is the government is, like the rest of us, a user of the currency, and should, like the rest of us, balance its books, or even better, run a surplus.

So say the government does this - balances its books.

This means all money must be created by banks.

@sjwrenlewis The tories are in power, because of the same ideas that caused Austerity. Let me explain. (1/n)

Imagine you are a small business owner. Not massively rich, but doing ok. In these recent times however, things have begun to get tight. Orders are down. @sjwrenlewis (2/n) Indeed you are beginning to worry about cashflow, if you have enough to pay your staff given the ongoing economic squeeze. There are many small to medium sized businesses feeling this way.

Election time - Labour runs on the idea that taxes need to rise to pay for policy.