Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Mark Wadsworth blog
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Modern Monetary Theory - Kwasi but twue

% of readers think this story is Fact. Add your two cents.


The MMT view of things is perfectly simple.

1. When the government spends money, it is printing or creating money. It does not need to ‘borrow’ money to spend, either there are coins and notes in circulation, or Treasury Bonds, which are just two types of the same thing. Cash is liquid and non-interest bearing, bonds are less liquid and interest bearing. But both are issued and backed by the same government.

2. When the government collects taxes, it is unprinting or destroying money. The purpose of this is to create demand for the currency (primary aim) and hence avoid inflation and keep interest rates down (outcomes). It is broadly agreed that that low inflation and interest rates are A Good Thing.

Some MMT supporters look at the first part, the spending/printing side and say, “Oh well, the government doesn’t need to borrow money or collect taxes to be able to spend”, which is to completely the second part. These people are moving the debate backwards and discrediting MMT, which is not a policy recommendation, it is a simple description of how things work.

The recent Truss/Kwarteng foray into cutting taxes was a bad idea politically (it would have increased inequality) but the financial markets don’t care about that, they care about the second part. Unfunded tax cuts reduce demand for a currency and hence lead to the currency weakening relative to other currencies; hence imported price inflation; as well as higher domestic inflation (more money sloshing about chasing the same amount of goods and services); and higher interest rates (to compensate for future expected inflation and general uncertainty that the government doesn’t have a clue what it’s doing).

Simply reversing the proposed tax cuts has reduced the damage in part, but not completely. If a car runs you over, you can’t ameliorate your injuries by having the car reverse back over you again! And with Truss and Kwarteng at the controls, you can expect to be the victim of lots of hit and runs in future.


Source: http://markwadsworth.blogspot.com/2022/10/modern-monetary-theory-kwasi-but-twue.html


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.