Richard Phillips
@richyphillips
Hate the Tories and Labour in equal measure. Anti-Neolibral. Pathetic Dot. #MMT
Payments are always made from the Consolidated Fund and always create a -ve balance (overdraft) until taxes are back-filled later that day. Thus deleting reserves as the overdraft is paid back. new-wayland.com/blog/all-gover…
I have not heard this explanation before.
When bank loans are used to buy Government debt…money is created (ie ‘printed’). [All bank loans increase money supply] QE involved BoE using loans from commercial banks to buy Government debt. BoE is now unwinding (some) QE (at big losses) through QT and repaying those banks.
The trick is to make tax obvious, transparent and less easy to avoid. Our system is far too complex and easy to avoid.
The Laffer Curve continues to outfox the socialists...
So help me out here. Everyone who replies negatively to MMT concepts uses the term 'printing money'. Do they all use that phrase to mean the same thing? Is it just the existence of a gov't deficit that they are referring to?
Classic example of an indoctrinated neoliberal zealot.
Absolute loon. If this were the case we wouldn’t have to pay any taxes. Classic leftie nonsense.
The lie continues.
The majority of voters don’t understand that money the government gives to one group has to be taken from another. Government spending is a zero sum game.
Behind a pay wall, but this is bollocks. Total Gov liabilities will not change. Millions of pounds will be wiped off the UK’s debt stockpile after a two-centuries-old government body invested a gift from private donors into a gilt maturing this year bloomberg.com/news/articles/…
Yep. Word!
Mainstream economics is replete with ideas that “everyone knows” to be true, but that are actually arrant nonsense. That is how Rudd (2021) begins, in which he argues quite convincingly that "inflation expectations" do not have predictive power for actual inflation
I had an interesting exchange with Copilot about barter in Native American 'society'. After initially towing the mainstream narrative, I reasoned with it and it completely u-turned, agreeing that barter wasn't a thing within tribes, a more informal system of credit existed. 🫤
Mainstream econ models always result in something happening 'unexpectedly', because they are from a fundamentally wrong base line.
BBC says UK economy shrank “unexpectedly” in May. Why’s it unexpected? That’s what happens with a Chancellor who doesn’t know how to run an economy
In the west, we'd rather give profits to CEOs and shareholders (even when those 'profits' come from leveraging up assets).
Ford CEO Humbled by Chinese Technological Superiority “Huawei and Xiaomi are in every car,” Farley said, referring to two of China’s tech giants. “You get in, you don’t have to pair your phone. Automatically, your whole digital life is mirrored in the car. You have an AI…
Dear students of economics, if you do not understand the tweet below it means that you have not studied money properly. It's not your fault - it is the intellectual closure in higher learning that has failed society. Keep calm & #LearnMMT
Refilling the Treasury general account now that the debt ceiling is raised.
The ultimate irony, is the account name 'SetTheUKFree'. Yet they advocate continued slow strangulation of the economy, by maintaining the neoliberal TINA status quo and refusing to open their minds to alternate ways of thinking. Hey-ho 🤷♂️
MMT is bullshit. As evidenced by the lack of any proper qualifications in it. This guy did an hour of online reading and says he has a qualification in it! If MMT was remotely usable in the real world, not the theoretical one, it would solve all the world's problems. But it isn't
It's all just promises; contractual obligations.
What commercial banks create are not £ sterling. They are promises to deliver £ sterling.
It seems that the LSE breeds patronising twats like Hearn.
Don't worry about it. Like all quasi religious beliefs they cling to it regardless of what happens....
This should be interesting...this 'expert' studied at LSE, same place as Reeves and Hearne.
@notayesmansecon is this how the bond markets work? It doesn’t sound like it to me but you’re the expert.
Gdp is the only thing that matters 🤪
Sorry Comrades „Economists“, free market works, and it works really fast.
Anyone, anyone? ........
Why does the British government borrow its own currency, of which it is the issuer?
Apparently, healthcare and social services are, apparently, unproductive jobs 🤷🤦
92% of the 147K jobs supposedly created in June were in government, health care, or social services. Manufacturing continued to lose jobs. These non-productive jobs raise our trade deficits, and lead to more government debt and higher inflation. Investors won't be fooled forever.
Should the BoE be offering govt bonds that are any longer than short (max 3yr?) maturity at all?
The average qty of reserves held by commercial banks in 2024 was £850bn. At an IOR rate of 5.25%, the govt paid over £44bn to them for literally doing nothing. Welfare for the banks. Yet they'd prefer to take money from the disabled to 'balance the books'. 🤬