Discover and read the best of Twitter Threads about #MMT

Most recents (18)

Il controllo dell’inflazione dovrebbe essere affidato a una politica monetaria indipendente dalle richieste del governo: questo modello, da perfetto manuale di economia, potrebbe essere superato in un prossimo futuro.
È quanto sostiene il fondatore del maggiore Hedge Fund al mondo, Ray Dalio, in un post su LinkedIn nel quale indica la MMT non come una scuola di pensiero minore, bensì come qualcosa che potrebbe assomigliare al futuro comportamento dei policy-maker.…
Se per la teoria economica mainstream la banca centrale indipendente garantisce un comportamento più efficiente verso la stabilità dei prezzi, sottraendola alle esigenze elettorali dei governi, MMT ritiene che politica fiscale e monetaria dovrebbero agire in modo coordinato.
Read 48 tweets
1/ The Constitution, flawed tho it may be, has a lot in it’s favor. Those of us in the #MMT community speak a lot about Article 1, section 8 and the ramifications of it to our current monetary system.
2/ Now, with Kavanaugh being thrust down our throat, it’s time to discuss another section of the constitution; Article 3, section 2. In the second half of the second paragraph, it says:
3/ “...In all the other cases before mentioned, the Supreme Court shall have appellate jurisdiction, both as to law and fact, with such exceptions, and under such regulations as the Congress shall make.”
Read 5 tweets
A core proposition in #MMT is that we can always create whatever money is necessary to maintain a full employment economy. The Federal Reserve building is named after the Fed Chairman who made the same point in 1939. #MarrinerEccles
Here's Eccles--a businessman and a banker--calling B.S. on business leaders and their argument that tax cuts & deregulation would unleash a powerful (trickle-down) effect that would boost output and employment.
Here he is arguing that tax cuts should be aimed at the real job creators--consumers --especially low-income workers. For economic *and* social equity reasons.
Read 7 tweets
“Then why does the military budget keep going up as social programs keep getting cut?"

Now that’s a good question.


[thread – version 2]

You and I require income (a paycheck) before we can spend. We must choose and prioritize what each dollar is spent on. Food or medicine? Can’t afford both this week. Or... gotta chop that pill in half so we can buy food for our kids. Hard choices. One or the other. Either/or.
Before Nixon took the US dollar off the gold standard in 1971, the federal gov't was the same way: they needed income (i.e. taxes) before they could spend. Now that the US dollar is a "fiat" currency, "a budget" to me and you is


like "a budget" to the federal gov't.
Read 34 tweets
"Then why does the military budget keep going up as social programs keep getting cut?"

Now that’s a good question.


You & I require income (a paycheck) before we can spend. We must choose & prioritize what we spend each $ on. Food or medicine? Can’t afford both this week. Or...gotta chop that pill in half in order to buy bread & eggs to feed our kids. Hard choices. One or the other. Either or.
Before the United States went off the gold standard in August of 1971, the federal government was exactly the same way: they needed income (taxes, borrowing) before they could spend on federal programs.
Read 33 tweets
Third Way, a group of self-described "moderate Democrats," is stoking fears that the progressive movement will hurt our chances at winning the mid-term and presidential elections. (1/4)…
Third Way, which consists of many Wall Street bankers and real estate developers, accuses progressives of wanting to end capitalism, while the "moderate Dems" merely want to mend it. This is a gross mischaracterization of the progressive movement. (2/4)
It's the corporate & financial interests who don't want change, while progressives are talking about what Millennials and Working Families want (i.e., #MedicareforAll, #CollegeforAll, #JobGuarantee, #UBI, 100% #RenewableEnergy)...(3/4)
Read 5 tweets
I hear a few ppl say that #MMT applies only to the USA & not the U.K. I don’t know where this comes from, but they’ve made up so much stuff about MMT that I’m not surprised about this. so lets clarify some things:

1) MMT applies to all nations that have a fiat currency & r monetarily sovereign.

2) the UK has a Fiat currency. So does the US, Australia, Japan, and many others. This means their currencies r not pegged to gold or any other currency or commodity.

3) these countries are also monetarily sovereign. That means that their national govts are the monopoly issuer of the currency.

4) in all these nations, commercial banks also create money through credit. But this is not the same as “currency”, which is a net asset to us.

Read 13 tweets
When discussing the #NHS in terms of privatisation I always think it's useful to equate what neoliberals and the private sector are doing to it as akin to a parasite infecting its host. The goal of a parasite isn't to kill its host but to extract energy to allow it to grow. 1/11
Ultimately the parasite seeks to reproduce and spread, much the same as private providers offering and supplying public services has spread and increased over the years. So what is the "energy" these parasites are extracting, and how do they know they won't kill their host? 2/11
The energy source in the case of the NHS is the Treasury, the "energy" itself is the national currency. These parasites know that the currency issuer (government) has an unlimited ability to create the currency, and provided the public doesn't learn this fact, they can 3/11
Read 11 tweets
For me the biggest insight regarding #MMT isn't that taxes aren't needed prior to spending but that bonds are for monetary policy not fiscal. The big scary borrowing everyone hammers on about so much is nothing more than savings opportunities with an interest rate set by the BoE.
This realisation opens up important discussions about whether these savings opportunities are being provided on a fair and equitable basis, or indeed, whether they should exist at all in this format given the misinterpretation of their function.
Whilst eliminating interest on government "debt" may well be desirable, it would also eliminate safe savings opportunities for those in the private sector. For me personally, if a ZIRP were to be implemented then an offer should be made for individual savers. This may be in the
Read 7 tweets
An English monetary tale: For 600 years from the 12th century, prior to the invention of double entry book keeping, English sovereigns issued to their subjects loan tallies, notched wooden sticks split into two, down the middle, in exchange for coinage, goods and services.
Coinage was minted from silver bullion via ‘free minting’. The Royal Mints took in silver bullion from individuals, typically merchants, and returned a slightly lesser amount of metal in coined form, creating the money supply in silver pennies.
Minting of silver pennies, ‘just pennies’, was worth the sacrifice of silver as they alone were accepted and used by the Sovereign, who also enforced their use by individuals in common law in English trading markets as payment of all debts.
Read 11 tweets
Hello MMT world! This twitter feed is meant to provide opportunities for online MMT activism. We will post articles, YouTube videos, twitter threads, etc., which could benefit from an MMT perspective in the replies, then you can join those discussions. (1/4)
Our purpose: to stamp out myths regarding the monetary and banking system, so that political and economic discussions can truly be informed. (2/4)
Our strategy: get MMT out there to the places these discussions are already being had. Do so in a highly visible and lasting way that maximizes the impact of our time. Engage people in friendly conversation. Win hearts and minds one by one. (3/4)
Read 4 tweets
If you REALLY want #MedicareForAll, then stop talking about how we will “pay for“ #MedicareForAll.

#MMT #LearnMMT…
An insightful response to our article on avoiding the “pay-for” trap.


And another:

As citizens, we make demands from our reps, it’s their job to deliver on those demands & sort out the details properly.

Me: “I want #MedicareForAll
Rep: “How RU going to pay for that?”
Me: “Stop making me do your job. You wanna be a leader? LEAD!”

Read 13 tweets
1/ An extraordinary first article for understanding Modern Monetary Theory #MMT: “Cutting the federal deficit to cure a recession is like applying leeches to cure anemia.” #LearnMMT…
2/ Freaking out about the deficit and the debt is to myopically focus on only the federal government’s bank account at the expense of every private citizen. A balanced budget for the federal government takes money directly out of the pockets of every American. #LearnMMT
3/ Freaking out about the deficit & debt is sort of like only caring about the financial condition of the parents while completely ignoring the well-being of all of their children – and the family as a whole. What is best for the FAMILY?! What is best for the COUNTRY?! #LearnMMT
Read 6 tweets

1: Money is the root of all political evil.
1a: ...and it’s corollary, income inequality.
2: Modern Monetary Theory #Mmt demonstrates that we CAN have nice things. The only reason we don’t is because the powerful can only stay powerful if they keep the powerless powerless.
Read 6 tweets
1/8 Please please please, @WaywardWinifred (& all progressive leaders!), please #LearnMMT. in a country that prints its own money (the United States is a “sovereign” nation with a “fiat” currency) the national debt is meaningless and nonsensical.
2/8 #LearnMMT
- “We can’t ‘afford’ #MedicareForAll!” 👉 The word “afford” is meaningless in a fiat currency. We print our own money!
- “Sure, #M4A is nice, maybe someday, but how will we pay for it?!” 👉 We pay for it by voting the money into existence. How? By passing HR-676.
3/8 #LearnMMT
- But r taxes will go up! 👉 Federal taxes, while really important, DO NOT PAY FOR ANYTHING. (If u could print ur own 💰, would u need income?)
- But it will bankrupt the country! Think of the children! 👉 Exactly how do u bankrupt a country that prints its own 💰?
Read 9 tweets
See, this is what happens when you #LearnMMT. @RoKhanna, like every federal government official (whether elected or appointed) has learned #MMT. Federal officials have always known #MMT. ( 👈Remember that, because it will – should! – make you angry after you, too, #LearnMMT.) 1/
Once you #LearnMMT, you will realize that there is one – and only one – reason that we can never seem to "afford" the moderately-expensive nice things for the powerless, even though we can always (and immediately) "afford" the mega-expensive nice things for the powerful. 2/
High-speeed economics lesson. Buckle up:

The US is a "sovereign" nation w a "fiat" currency (which has been the case since 1971, when Nixon took us off the gold standard). That means we can print our own 💰 – WHENEVER we want FOR whatever we want & however MUCH we want. 3/
Read 21 tweets
It would be a shocking scandal if it came to light that the professions of medical science had, for decades, known about an easy to treat, underlying cause of cancer—but conspired to obfuscate and suppress the information to protect their participation in a medical industry
raking in hundreds of billions a year to treat the disease. Professional standings, tenures, licenses would be in tatters. Lawsuits would abound. Outrage would march on every city hospital and medical college in the nation—would it not?
Then you need to read this short article -- A Comfortable Betrayal…
#LearnMMT #MMT ARE THERE ANY REAL JOURNALIST LEFT??? @SteveCollinsSJ @mikeshepherdME @BillNemitz @chrislhayes #NBC #CBS #abc2020 Will You Take to the streets with us? Poll Below ⬇️⬇️
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Over the years, I've heard both friends & critics dismiss Modern Money (#MMT) as a "one-trick pony." I have some thoughts on that. (1/X)
First of all, I get it. Having once held similar reservations myself, I extra get it. But it couldn't be further from the truth. (2/X)
We're talking money here. This thing we swim in, this thing we're forced to breathe, whether we like it or not (3/X)
Read 25 tweets

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