Bobby. wrote on Apr 8^th, 2022 at 7:04pm:


Which is not a problem, because the Australian government is the legal issuer of the Australian dollar, unlike households and firms (and state governments) who are users of the currency.

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Hyperinflation? Have you read the article posted by Senexx?

I haven't read it yet because I know what causes hyper inflation, the famous examples being Weimar Republic, Zimbabwe and Venezuela.

If you had read it, you would not still be citing Zimbabwe, in reference to the "money printing" practiced by the Australian government, where hyperinflation has never been a problem, and indeed the central bank has been trying to lift inflation for a decade (to 2-3%). 

thegreatdivide wrote on Apr 8^th, 2022 at 9:26pm:


Inflation is way above 3%.

House prices went up 20% in the last year and so did shares.
Inflation is a monster that will eat up our savings -
that includes anyone who will rely upon their Super.

In Australia we print money day and night.

In Zimbabwe they kept printing money
until you needed a wheelbarrow of money to buy a loaf of bread -
so they starting printing 100 trillion dollar notes.

Bobby. wrote on Apr 8^th, 2022 at 11:56pm:


Have you turned into a bot? I have already addressed hyper-inflation.

I suggest you try genuine debate, or be exposed as a fraud.

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The Govt. printed over $300 billion for their Covid policy.


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The printed money ended up causing inflation.


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The cause of inflation is to do with the Govt. printing money
and the banks creating money out of thin air from debt.
Did you watch this video?



You will understand that inflation is an indirect way
of making a tax that people with savings pay
by having those savings devalued due to inflation.

You will also see that the whole system is based on
permanent growth of economies in an exponential way
when in fact we live in a finite world of resources.
It's based on a lie.

Jovial Monk wrote on Apr 9^th, 2022 at 8:19am:



Yeah right - shoot the messenger.   

MeisterEckhart wrote on Apr 9^th, 2022 at 9:22am:


Nice example -
see here:

https://en.wikipedia.org/wiki/Hungarian_peng%C5%91


the currency survived for only 20 years and
experienced the most serious case of hyperinflation ever recorded.

Bobby. wrote on Apr 9^th, 2022 at 1:27am:


Correct; and then cut it in half when covid turned out to be less deadly than expected.

But you still are ignoring the fact that currency-issuing government faces a resource constraint, not a money constraint, and that inflation can be controlled in many ways other than by lifting interest rates. 

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No it didn't; non-government borrowers enticed by low interest rates pushed up housing prices; and pent-up demand fueled by government support in excess of locked down workers' needs (ability ot pay bills during the lock-down) ended up causing inflation. 

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1. Government "printing money" only causes inflation if there are insufficient resources, in this case, national output on which the government can spend the money.

[This is the reason for all hyperinflation episodes; eg in Zimbabwe the government printed money in an attempt to enable consumers to pay for  more expensive food , - higher food prices  which resulted from expulsion of skilled white farmers in Zimbabwe].

2.  Banks creating money out of thin air from debt; this is how banks ALWAYS create money, when they write loans for (hopefully) credit-worthy customers, independently of the banks' money reserves.

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Watching it now....

1. The speaker has just confirmed my point 2, above. ie banks don't lend money from reserves, but create money out of thin air.

2. Now talking about gold....no doubt heading to the gold standard, which became obsolete  in the 20th century,  when other nations began to fear the  US did not have enough gold to pay its overseas debts (as a result of the costs of the Vietnam war); Nixon took the US off the gold standard in 1971).

3. "How much money exists? In the past it had to be related to gold" .. his thesis is rapidly becoming boring, because the gold standard is now of necessity obsolete, since nations don't have enough gold to enable smooth functioning of international trade and exchange.

4. "The only real limit to (debt) money creation is the creation of debt".

Garbage. The limit to the creation of money is available resources, not debt. 

The currency-issuing government (unlike private- sector players) doesn't NEED to take on debt.

5. "Banks can create as much money as we can borrow" .....correct;  and same as for government spending, if the economy is producing sufficient output on which the money can be spent, there is no inflation problem. 

6. "The artificial world of money..."...a key MMT insight; the hammer is real, the IOU to purchase the hammer is not a "real" resource.

7. "how can it be that the people who produce all the real wealth in the world (workers) be in debt to private banks(t)ers?": ....good question.

8. "if there is no debt there would be no money, because money is debt"...unless the government is authorized to create debt-free money, which is the MMT insight.

9. "Why are interest rates so low"?......  obviously to avoid bankrupting the indebted private (and public) sectors....

10.  "charging of interest is both immoral and impractical" ...correct; I'm looking forward to his conclusions...

11.  "monetary reform - a change of the system - will not come easily, owing to self-interested banksters  etc " ...no kidding, every MMTer knows that's true..

12.  Note all those assassinated presidents who dared to say  the government can create debt free money., then we have that very odd quote from Rockefeller...

My conclusion: the presenter confirms the need for a system change, as taught by MMT, but fails to offer an alternative to debt based money, not based on gold.

Did you see an alternative?

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Inflation results from excess demand on resources, which is the problem to be solved, while ensuring everyone has access to food, housing and employment. 

And as for your savings,  most people don't get a chance to accumulate savings, your self-interest is as transparent as the banksters the video rails against.   

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Indeed! And MMT offers the solution, since MMT can avoid inflation.

Your solution to the current unsustainable public and private  indebtedness,  enforced by the current crop of banksters?