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Dr. Kelton tweet thread on issuing money

“As the government has the right to issue fiat money, government debt is safe from danger of default of either interest or principal when due.”
~H.P. Minsky, 1959
Putting it more crudely, “the United States can pay any debt it has because we can always print money to do that. So, there is zero probability of default.” ~Alan Greenspan
realclearpolitics.com/video/2011/08/…
Warren Buffett: “We’ve got the right to print our own money. That’s the key.”
Even the King of Debt (sometimes) gets it: “This is the United States government. You never have to default because you print the money, OK. I hate to tell you.” (video of Trump)
None of this should be remotely controversial. Here’s the STL Fed making the same point. “Our challenge is not “finding money” but managing inflation-risk in an economy where the government-as currency issuer-is not constrained by the need to raise revenue.”
Hence, “pay-fors” (tax hikes or cuts to other parts of the budget) exist to offset the inflationary effects of proposed spending. More-or-less unnecessary in a depressed economy. Closer to full employment, they MAY be necessary. Depends on several factors.
It would be extremely useful if lawmakers (and their budget-scoring agents) began with the question, “Will this proposed spending bill require offsets and, if so, how much needs to be offset?” And show your work!
Instead, we start with the proposition that any new spending bill should be “paid for”–i.e. government must demonstrate that it has a plan to remove a $ from the economy for every $ it plans to spend into the economy. That is holding us back, big time.
Can I close out this thread and get back to my book now? I can’t tell whether I’ve convinced everyone on Twitter. 😉
Lastly, to anyone who thinks MMT is some flighty, print-your-way-to-prosperity program, NO! What I’m advocating is a far more *serious and technical* way to approach the federal budgeting process.

Source: Thread by @StephanieKelton: “”As the government has the right to issue fiat money, government debt is safe from danger of default of either interest or principal when du […]”

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Econ Focus, First Quarter 2017 – Federal Reserve Bank of Richmond — Poverty and Lead Poisoning

Source: Econ Focus, First Quarter 2017 – Federal Reserve Bank of Richmond

This is a terrific and unusual piece for a bank to publish. It traces the history and highlights how America’s weak unions and strong lobbyists prevented action being taken on it for at least 50 years after Europe had banned it. As corporations continue to do today with any science that threatens to protect it’s customers from poisoning, they “cast doubt” on the science, blamed the poor, etc. I highly recommend it.

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The history of the neocon takeover of the USA – a 4 part analysis; Vineyard of the Saker

Americans should know by now that their country’s wars are fertile ground for biased, one-sided, xenophobic, fake news and the United States has been in a permanent state of war since 1941.

Sadly true.

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2016 Election Fraud Roundup

The first report is a statistical analysis of the actual vote counts in each state from smallest precincts to largest. It’s based on the mathematical “Law of Large Numbers” and in a normal graph, the lines for each candidate flatten out to a roughly horizontal line (averages). Anything that doesn’t is equivalent to shuffling a deck of cards and having it end up in numerical order. It’s pretty much impossible. Anyway, take a look. It’s pretty amazing. Electoral System in Crisis Report The report was authored by top statisticians and is highly credible.

Next up is a 6 part study of newer voting machines, and it reveals how the above might have happened. Link is to the first of the series, you can pick up the rest from there: Fraction Magic Part 1

The next report addresses all the myriad *other* frauds being perpetrated on voters, from Election Justice USA (opens pdf file): Democracy Lost

This is a good video on it: 2016 Election at Risk – STEALING AMERICA: Vote by Vote

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One Example of How the Left Has Internalized the Ideology of Their Oppressors

“Ideological hegemony is the process by which the exploited come to view the world through a conceptual framework provided to them by their exploiters.” – Kevin A. Carson

Every cynic was once an idealist who has grown defenses around their heart to avoid the pain of having their hopes dashed yet again. Ignoring the fact that Obama was always a well-marketed corporate candidate with moderate conservative (neoliberal) positions, a lot of people got their hopes up that he might be different. It’s understandable people don’t want to get their hopes up again.

The Bernie Sanders movement is not about him. It is about millions upon millions of us deciding that we’ve had enough. That we’re not going to play our part in their game anymore (where we stay home and they continue to rule).

Source: One Example of How the Left Has Internalized the Ideology of Their Oppressors

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They Thought They Were Free

It *can* happen here. This deserves a careful reading, so I won’t do any cutting and pasting. In view of events now.. a very careful consideration indeed is in order.
Go here:

Book by Milton Mayer Review by Thom Hartmann, originally published at buzzflash.com on November 7, 2005.

Source: They Thought They Were Free

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Louisiana economy suffered ‘years of mismanagement’ under Jindal – Business Insider

This is unbelievably bad:

Without tax increases in the coming weeks, the government will cease to offer many of its vital services.

Source: Louisiana economy suffered ‘years of mismanagement’ under Jindal – Business Insider

And I suspect this is why:
Louisiana has sixth highest inequality in the nation
Hey you guys, anybody thought of, like… oh.. taxing the people that got all the dough for a change? At the rate the state is deteriorating, they’ll all be heading for California soon anyway.