@ingo oh it is just a link to the index of exploring economics. That's not very useful. Thanks anyway.

@ingo can you link me specifically to the criticism part please?

Key sentence in a story that is interesting on many levels.

"But the dollar is a fiat currency, which means that its value does not depend on the backing of any assets the government owns."

Failure to understand this is the foundation of the #DeficitMyth, the convenient excuse for destroying the US government.

What's the deficit myth besides being expedient?

See L. Randall Wray's "Making Money Work for Us" or the very compact "Money for Beginners."

#mmt

https://www.theatlantic.com/ideas/archive/2025/03/strategic-cryptocurrency-reserve-swindle/681917/?gift=w2hbEf3JROTUmsXaSUzB4QB9js3cOSlD5Vy40w1Pqf4&utm_source=copy-link&utm_medium=social&utm_campaign=share

@johnverdon @katyswain I would say only ex post. The reason is because you cannot drive a currency by issuing a bond first. So it is kind of like starting in the middle.
From a foundational POV, I say no. From an already established cyclical view, I say yes.

"We can, and must, tax the rich. But not because we can't afford to do anything without them. We should tax billionaires to rebalance the distributions of wealth and income and to protect the health of our democracy."
- Stephanie Kelton

PS: if not seen, watch the "Finding the Money" documentary.

#Quote #MMT #Economics #TaxTheRich #Democracy #Quotes

If you're interested in #MMT, check out this fab and fun video explaining sectoral balances:

https://www.youtube.com/watch?v=mtDzC3i9i6A

James is a fellow Modern Money Lab student (https://modernmoneylab.org.au/) and yes, he is like that all the time.

A little something I wrote about “pop MMT” and “academic MMT” https://open.substack.com/pub/darrenquinn/p/reconciling-academic-and-popular?r=clsb6&utm_medium=ios #MMT

@ijenkins99 what if I suggested that neoliberalism is Applied MMT. Right-wing Applied MMT?

So, the key takeaway is that sovereign currency #issuers have a special ability to create #money and use it to manage the economy, while currency #users have to work within the limits of the money they can obtain.

This #difference is crucial when we think about how #governments should handle their #finances compared to #households or #businesses. #MMT

This means using #money creation to ensure there are enough #jobs and #resources for the players, rather than worrying about having too many or too few points in the game master's bucket.

In #MMT, we say that the #government should use its power to create money to make sure #everyone in the game can play as effectively as possible.

However, the game master has to be careful not to create too many points too quickly, or the points might become less valuable. This is similar to how a #government must be careful not to create too much money too quickly. it could lead to #inflation in a variety of ways. We will get to that later.

In the game, if a player spends more points than they have, they go into #debt and might eventually run out of points. But the game master can never run out because they can always #create more points.

This is like #households, #businesses, and even some countries that use a currency they don't control, such as the nations in the #Eurozone or countries that use the US dollar like Ecuador.

Any #Australia people out there?

You have an opportunity to see a new #documentary about #MMT and to learn why unnecessary #austerity keeps us from taking care of our citizens and our planet.

Film Tour | Modern Money Lab https://modernmoneylab.org.au/events/film-tour/

This is like countries such as Australia or the United States, which issue their own currencies.

They can always create more money to pay for things like #healthcare, #education, or #infrastructure.

Currency users, on the other hand, are like the players in the game. They have to earn points by completing tasks or trading with other players. They can't create points on their own. #mmt

Sovereign currency #issuers are like the game masters who can create points whenever they want. They don't need to #earn points by playing because they can just #generate them.

Imagine the #economy as a game where there are different players. Some players can #create points out of thin air (sovereign currency issuers), and others have to #earn points by playing the game (currency users).

Now, if we focus on a sovereign currency #issuer, like Australia, the government has its own bucket where it can put in as much of its own currency as it likes because it creates the currency. When the #government #spends, it is like adding water to the economy's pool. 🏊

Introducing #Sectoral Balances

Think of the economy as having different buckets where money flows in and out. In the context of MMT, we often talk about three main buckets: the government sector, the #private domestic sector (which includes households and businesses), and the #foreign sector (which includes all transactions with people and businesses outside of the country). #MMT