Prof. Steven Hail tweeted:

"Planned transition to a sustainable, equitable economy, guided by the economics of Kelton, Raworth and many others, yes.

Unplanned recession, driven by following misconceived neoclassical advice, with the impacts such events have on well-being, no."

https://profstevekeen.substack.com/p/its-not-a-deficit-its-a-fiat?utm_source=pos...

It’s not a deficit, it’s a fiat
Why celebrate a government surplus?

"What is Richardson really celebrating, because the government is now running a surplus?

He's celebrating the government reducing the financial resources of the private sector. He's celebrating the government reducing the money supply. Somehow, this is supposed to make the economy work better."

aquascoot wrote on May 1^st, 2023 at 5:45pm:


Er...as empires are succeeded by a more powerful nation, their currencies are also eclipsed as 'world currencies'. 

Quote:


because they lost crippling wars to the newcomer on the block...

Quote:


Wrong again,  a government surplus is a sign that the government has taxed back more from the private sector than the government has spent into the economy, reducing the private sector's productivity.

Quote:


Wrong again; you are making the classic mistake of seeing the government's budget in the same way as your household budget. But the government is the ISSUER of the currency, while the private sector (inc. you and me) is the USER of the currency.

iow, a currency-issuing government is concerned with managing the country's resources for maximum good of the country.

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Wrong again...gosh, zero from five...

A prosperous country depends on govt. overseeing the most productive management of the nation's resources, nothing to do with "balanced (government) budgets".

Balanced budgets are for you and me to achieve in our own households (....to avoid debtor's prison).

cf goverment which must ensure demand for goods and services  can always be met by supply, to avoid inflation, nothing to do with 'balanced budgets'.

So...start at page 1 of this thread and educate yourself.  

An American anti-poverty plan:

https://marianne2024.com/issues/the-anti-poverty-plan/

Anti-Poverty Plan

Poverty is not natural, it is a policy choice, and we can end it.

"It is shocking that in the richest country in the world, well over a third of the American people are poor or near-poor. Nearly 70% of Americans would struggle to meet an unexpected expense of $400, according to a report by the Federal Reserve."
..........

Meanwhile in Oz, the gruesome neoclassical ideologue Philip Lowe is deliberately trying to lift unemployment from 3.5% to  c. 4.5%, while trying to avoid a recession - he calls it the "narrow road" - all in the name of managing inflation.

[Note: Alan Kohler refered to this insane 'NAIRU' dogma on TV last night).

In other words, Lowe's plan is to enforce 'welfare' onto those whose can least bear it, to rescue his sorry a*rse.

Sick, disgusting economic theory masquerading as
"management" of an economy.

The blind leading the blind....
https://www.msn.com/en-au/money/other/shares-in-us-banks-plummet-as-crisis-fears...

Shares in US banks plummet as crisis fears rock markets

"Wall Street’s banking giants suffered a sell-off last night after the takeover of US regional lender First Republic failed to calm market nerves.

The renewed turmoil intensified pressure on the Federal Reserve, the US’s central bank, ahead of a decision tonight on whether to hike interest rates again even as the crisis among lenders deepens.

Regional banks such as PacWest Bancorp and Metropolitan Bank , down 28 per cent and 20 per cent, suffered the biggest declines.

https://www.msn.com/en-au/money/news/sorry-what-the-latest-interest-rates-rise-s...

Sorry, what? The latest interest rates rise suggests the RBA board is completely lost to logic
Story by Greg Jericho • 4h ago

https://billmitchell.org/blog/?p=60809

RBA loses the plot – Treasurer should use powers under the Act to suspend the RBA Board’s decision making discretion

..........

Dan Andrews is angry too...

https://www.msn.com/en-au/money/news/daniel-andrews-blames-victoria-s-huge-pande...

Daniel Andrews blames Victoria’s huge pandemic debt on RBA interest rates advice

“I remember at national cabinet being told, ‘Go and borrow. If you don’t borrow, then we’re going to have 25% unemployment, we’re not going to get through (the pandemic), we will not survive this. And by the way – interest rates won’t be going up’,” he said of the advice on Wednesday.

“That was the message to governments. The same message was applied to households right across our country, that interest rates would not be going up."


Unfortunately for state governments, they are like households when it comes to repaying debt with interest......unlike the federal government which can order the Treasury to return its bonds and cease interest payments. 

As prof. Bill Mitchell says (in the top link):  

So in determining the severity of the sentence (in the recent ATO tax fraud case) , the Judge invoked the ‘taxpayer fiction’ and clearly doesn’t understand how the monetary system works or the role of the currency-issuer in that system.

He obviously thought that by defrauding the Australian government, these criminals have compromised the capacity of the government to spend and the damage caused would result in higher taxes, lower spending and/or higher future borrowing in the future.

The fraud did not compromise the ability of the Australian government to fund services during the pandemic. The government has all the dollars it ever needs to meet demands for its services".

More blind leading the blind; it would be funny if it wasn't so tragic:

https://www.theage.com.au/politics/federal/smashing-families-premiers-lead-attac...

Responding to the criticism of the RBA levelled by the Labor premiers, Angus Taylor  said big-spending state governments were adding to the inflation challenge and accused the state leaders of questioning the bank’s independence.

“Dan Andrews and state governments that spend a lot of money are also part of the problem, they are putting upward pressure on inflation,” he said.

“We’ve got an independent Reserve Bank. If they think it should be something different, they should say it. This has been a big success having an independent Reserve Bank.”

Greens leader Adam Bandt, who wants the government to intervene with the independence of the RBA and prevent it from raising rates further, said the central bank made the wrong call and was using everyday Australians as “cannon fodder” in its fight against inflation."

........

None of them understand public debt is the ultimate fraud imposed by private money lenders for whom the privilege of creating money is reserved.