Someone shared the tweet thread below with me on either Facebook or Twitter (can't remember) and it's EXCELLENT. So I've recreated it here, as faithfully as possible to the original as I can. I learned stuff and I hope you do too. To see the original tweet thread, click here. Tweet Thread About Reserve Accounting … Continue reading Understanding How Modern Money Works, Requires Knowing Reserve Accounting
I listened to an interview of Warren Mosler by Bob Murphy, for episode 18 of The Bob Murphy Show podcast. A link to the full interview is at the bottom of the post. The interview is easily divided into three sections, which can be listened to independently if desired, so I broke the interview audio … Continue reading Warren Mosler Interviewed about Modern Monetary Theory (MMT)
To be clear, this applies to currency issuing governments ONLY. This is true of the US Federal government. This is not true of the government of Texas. The US is the currency ISSUER. Texas is a currency USER, just like you and me. Having said that, the reason we have money is because the currency … Continue reading Government Deficit Spending Creates Private Sector Surpluses
Consider that the US Federal Government is the source of ALL US Dollars in existence. Consider that the US Federal Government can create US Dollars at will, whenever it is deemed necessary. Consider that the US Federal Government's ability to spend money is not constrained by the availability of US Dollars, as they can simply … Continue reading What Does It Mean When Politicians Say “We Can’t Afford It”?
Has it occurred to you there are some things for which we NEVER ask that question. In the fairly recent past: The invasion of AfghanistanThe invasion of IraqThe 2018 tax cuts In a more distant past we didn't ask this about WW2 or the moon landings. Why is it this question is sometimes considered to … Continue reading How Will We Pay For It?