Why the Elite are Living In an Economic Fantasy (with Stephanie Kelton)

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1. The dissipation light of the US economy is flickering alot faster now that the US is on the verge of total economic collapse.
2. Ugh... I can't understand this economy crap. Even easy explanations float right over my head.
3. It is entirely arbitrary for Ms Kelton to claim the deficit can be "too large". The only relevant consideration is how government money is deployed. A point I think she understand very well.
   
   Sovereign government is its deficit.
4. How to debunk MMT in 2 words. "Currency rejection".
5. With respect to deficit spending. The explanation here of the balance between unemployment and inflation  being related to deficit spending is good stuff. Makes complete sense.
   But what if as here in the UK, a massive deficit is created by bailing out banks, and they put this money into tax havens after the bonus round. In that case, you might have a large deficit, but unemployment and deflation! As well as the Tories saying that Labour spent too much! How would a genuine for the people government sort this out?
6. +Vern Etzel 
   "I"m thinking that if T-bills were just permanently set to 0%, then this whole "debt" issue goes away."
   
   As government money is a non-interest bearing (0%) debt of the Federal Government, what would be the point of issuing another type of non-interest bearing note?
   
   How would this make the "whole "debt" issue goes away"?
7. getredy, Bill Still has sort of "abandoned" his film Money Masters, but he has a new historical film called Secrets of Oz.  He advocates something like Steven Zarlenga, that the Govt should create ALL money and spend it, and I guess outlaw private banking, period.
   
   That would mean eliminating a LOT of things that are staples in markets & capitalism, and that instead of Govt being responsible for funding SOME public projects, Govt would be have the final say in ALL business borrowing and home loans and consumer credit.  Govt would have to operate overnight commercial credit that companies use to clear short-term delays between purchases and income. Govt would decide if you could get that TV or car or house on credit.
   
   I think MMT is more conservative than that, which could be totally fascist or totally socialist.  MMT agrees on splitting currency issuance between private lenders and govt spending, for different purposes and needs ... and with govt spending almost always NECESSARY for a capitalistic market economy to function and be healthy.
   
   Congress created the Fed as a unique kind of HYBRID govt agency.  Drop your assumptions for a sec.  Congress designed the Fed as a self-sustaining agency that does not get money from the annual Congressional Budget -- it earns a profit from interactions with banks. The Fed actually PAYS 100% of it's net profits each fiscal year back to Treasury, like a 100% tax rate.  The Fed does BY LAW issue shares of stock, like other corporations, but unlike other private corporations, the stock is NON-TRADEABLE in the market and BY LAW those "member banks" commercial banks that are part of the Fed system are required to purchase a specific number of shares, and these shares are non-voting, so the banks don't get ANY control of the Board the way corporate shareholders do.
   
   If "the Rothschilds" don't own any shares, since they can't buy any, and the shares that are owned by banks don't carry any decision powers, and the Board is set up by Congress and the President, there's no way to explain how "the Rothschilds" OWN or CONTROL the Fed.
   
   (There's the matter of political control over business, corporate power and all that, but that's a discussion that you are more likely to hear from Left Radical or Marxist critics, or honest liberals, about corporate control over democratic govt --- "free market" conservatives normally argue to DEFEND that corporate power and relations.)
   
   (There's the matter of the Fed being the regulator of banks and finance but leaders of the Fed and other regulatory agencies hand-picked from Wall St big banks, like Tim Geithner and Hank Paulson and Robert Rubin and other Goldman-Sachs execs, but that's an issue of regulatory capture that groups like OCCUPY and the LEFT try to address, while conservatives usually OPPOSE regulations on Finance ... let the horses run free and commit all the fraud they want.)
8. are you familiar with "sectoral balances"?
9. Taxes don't "fund" the federal government, they only extinguish currency. Deficit spending is absolutely necessary by a sovereign nation for the population to have any money at all. By "savings", we're talking any corporate profits or private money retained after taxes. You don't drain a pool then fill it, you fill it then drain it 
10. JFK saw the criminality of the fed and issued EO111101printing 5's backed by gold and 2's -backed by silver,and....LBJ's 1st order of Biz-rescinded it...What savings account? lol--oh you mean the mason jars..lol
11. I"m thinking that if T-bills were just permanently set to 0%, then this whole "debt" issue goes away. Every dollar you have in your savings account represents a dollar of Federal deficit spending. Your savings account is probably a LOT smaller than JP Morgan's though :) 
12. Accepted...The Gold standard would just start it all over again-no gold.The Federal reserve system is a criminal conspiracy and has to be dissolved.They are counterfeiters,loansharks,and their jr.partner-The IRS are the extortionists.Yes,mint 1- 14 trillion illusion coin.-just like the usury interest they put on us.. I am not a member of any party-because they dont matter-there isnt any choice-the game is rigged-Theres only Bankers who own and control almost-almost,everything.Austrian silliness?
13. Sorry for the "idiot" remark, but saying that fiat is "counterfeit currency" is old John Birch conspiracy stuff which, today in the form of the Tea Party, is the real problem we face in the US today. I have no love for the wealth disparity that has been rising steadily since 1972, but saying that the US is "in debt" shows a misunderstanding of sovereign money. A couple trillion dollar coins would end all that, right? Please tell me you're not advocating gold standard and Austrian silliness.
14. So if someone doesnt agree with you -you call them names?Sounds like the problem -not the solution...So you agree that this demo repub-/bankster cabal who captured our central bank in 1913 and put us 14 trillion in debt and gutted our infrastruture based on greed is a good thing?
15. You're an idiot, obviously. The democratic republic has been around almost as long as civilization itself. It's an attempt to control what was the autocratic, agrarian state. It's called evolution. Civilization has only been around for 5k years or so, prior to that it was neolithic, tribal culture.. very violent. A state has a monopoly on violence, and the democratic republic should control the state. Evolve with the rest of us.. please.
16. All of you People on this site---Please watch-Bill Stills "The Moneymasters"-The history of the coup'd'd etat on our central bank in 1913 by The International banker cabal of Rothschild/Rockefeller and the debt enslavement of America.
17. Government does not exist to protect ppl and secure their rights.Government exists to extort counterfeit currency from excessive needless taxation for the military industrial corponazi complex and the rise of the police state.All currency printed for the banksters is instant debt as is the fraud federal reserve system which its neither.A truly free market without usury interest debt as our Constitution provided for us and this gov.usurped-has good results
18. Kind of right. You are correct in that taxes are not the means by which federal governments pay their bills. State and local taxes are just transferences of money from federal to state and local governments using the citizenry as the conduit. Why create this elaborate ruse? Why does the federal government not just transfer the money to states and local governments? Again Governments can make as much money as they need. 
19. You have repeated my statement back to me in different wording. Regulates aggregate demand , means controls who gets how much. The problem I have is. If governments have been granted authority by their populations to create all the money they need to operate. Why do they need to collect taxes at all. Please don't say to pay for services, because governments have been collecting taxes much longer than they have been providing services. 
20. I don't consider "inflation" as the mainstream does. Inflation should be measured by looking at all of the things that money is "chasing'. We then consider what would have been and what is and measuring the difference. This is key. Ignore YoY change in CPI. Just consider what the CPI would have been under multiple different scenarios. It is 233 now. Even if it stayed at 233 under Pres. Mosler, that doesn't mean there is no inflationary pressure. Consider the CPI Mosler vs Pres Hulsmann.