...and:

https://www.smh.com.au/business/the-economy/interest-rates-lowe-s-not-the-proble...

Ross Gittins:
"Interest rates: Lowe’s not the problem, the system is rotten".


......though Lowe believes in the system, so he IS part of the problem.

https://thenewdaily.com.au/finance/2023/02/13/reserve-bank-philip-lowe-rates/

Alan Kohler: The undemocratic independent Reserve Bank

thegreatdivide wrote on Feb 18^th, 2023 at 7:16am:




Such arrogance.

The Weimar Republic and Zimbabwe also had the right to print their own money.   

https://www.tandfonline.com/doi/full/10.1080/15487733.2022.2108251#:~:text=Daly%...

Reflections on Herman Daly’s Economics for a Full World: His Life and Ideas

The benefits of growth are greatest when a poor society gains the capacity to meet basic needs, but as growth continues, the benefits diminish while the costs – both ecological and social costs – grow. Daly argued that growth (in GDP) should cease when decreasing marginal benefits are equaled by increasing marginal costs – the point where the economy has reached its optimal size. That point has already been reached and surpassed in high-income countries, where growth is now uneconomic, Daly maintained.

Prof. Steve Keen explaining fiat money to Elon Musk, who doesn't have a clue:

https://profstevekeen.substack.com/p/when-billionaires-collide?utm_source=post-e...


"When a government spends more than it gets back in taxes, it puts more money into people's private bank accounts via spending than it takes out via taxes. Therefore, since private bank accounts are part of the money supply, a government deficit creates money."

"A nonfinancial asset is an Asset to its owners, but a liability to no one: things like houses (and even spaceships). The mortgage against your house is a Liability for you and an Asset for the Bank, but the house itself is your Asset and no-one else's Liability: instead, it is part of your total equity".

"This is the reason that the American government can maintain permanent financial deficits: because they're backed by the nonfinancial assets of the country, which have grown with and because of the deficit over time. Over the last 120 years, the average government deficit has been equal to 2.5% of GDP—see Figure 6."

"As Figure 7 shows, the government's red ink becomes the private sector's black ink: the negative financial equity of the government is, dollar for dollar, the positive financial equity of the private sector."

What about government debt?

How does government debt—really, government sale of Treasury Bonds—change this picture? It does three things:

1.It lets the government's account at the Fed—the "Consolidated Revenue Fund"—remain positive, so long as Bond sales are equal to the Deficit plus interest on outstanding bonds;

2.It lets the Federal Reserve maintain non-negative equity, since it has an essentially limitless capacity to buy bonds off the banks in the secondary market. The Asset it accumulates—government bonds—can now match or exceed its liabilities of Reserve accounts and the CRF; and

3.It gives banks an interest income which, customarily, they didn't earn from Reserves, since—before the Global Financial Crisis—The Fed didn't pay interest on Reserve balances."

Speaking of frauds:

http://www.billmitchell.org/blog/

RBA appeal to NAIRU authority is a fraud

Frank wrote on Feb 24^th, 2023 at 6:03pm:


...though Mosler's work has received meritorious  recognition at tertiary level.

https://en.wikipedia.org/wiki/Warren_Mosler

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It does: it "stands for" real resources, but money (which is always created ex nihilo - unlike (say) sea shells which nevertheless are presumably numerous enough to be useful as a medium of exchange in primitive societies - is NOT itself a real resource). 

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More accurately, money is a MEASURE of the 'value' of actual things - however 'value' is determined (in a market, or by government decree). 

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Yes; but as noted above, money is created ex nihilo, and therefore has NO VALUE in itself, the 'value' lays in the real resource.

Note: a glass of water in a desert is worth more than a $1 million note, in a desert.....

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Oh dear, I suggest you rewrite that sentence, so that the  jarring contradiction isn't so obvious....

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Indeed, governments "can't save themselves just by printing more of it", but that has nothing to do with "money not being about money", it has everything to do with money not being a real resource like food and housing which governments DO require eg, to distribute to low income families, or to educate the populace. 

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MMT is about a currency-issuing government's ability to maximize the economy's productive capacity.

Note: it is possible to conceive of a government maximizing the nation's productive capacity without using money at all, by simply allocating different labour inputs of individuals a certain quantity/quality of resources as reward. 

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Note: the treasury and central bank of a currency-issuing government can, by definition,  NEVER run out of money (ie, IS "undepleatable"); what the government CAN run out of is real resources, goods and services, if the government fails to support the nation's productive capacity, especially when the private sector runs amok (eg, the GFC and before it the Great Depression).