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This is an utterly ridiculous fallacy. 
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Mike Norman considers the following as important:
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This is an utterly ridiculous fallacy. 
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Mike Norman writes Treasury Settlement
Robert Vienneau writes Wages, Employment Not Determined By Supply And Demand
Thomas Piketty writes For a binational Israeli-Palestinian State
Mike Norman writes De-Dollarization Bombshell: The Coming of BRICS+ Decentralized Monetary Ecosystem — Pepe Escobar UPDATED
| This is an utterly ridiculous fallacy.  |
Their ignorance creates opportunities for us to acquire wealth
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the one disagreement is that they are buying with dollars spent by the government already. 90% of money is created by private banks. they're buying it with money the productive economy produced, mostly. And even if they don't deficit spend, it's not as if they hoard the money and don't spend it back into the economy. really the health of the productive economy is first in an economy, not deficit spending IMO. Even if you claim the initial dollars came from the government back 200 years ago, most dollars are still created by the productive economy, not the government.
It's mmt which is funding the Ukraine government.
how can we have all these people the heads of things they don't even understand like the FED and Treasury
I believe they do know but choose to act the way they do out of political motivation.
@Vincent Siniscal they are not supposed to give correct information to us (the slaves). It's a secret club and we are not in it.
If they’re not borrowing then why are they paying interest on a Debt?
No reason. It's unnecessary and stupid. Better send checks to people who need the money rather than give money to people and institutions that have money.
The Govt pays imaginary interest on imaginary money for an imaginary debt.
$PPLT been buyin under 86 for a month and lettin it ride to $103. its a common occurance.
Makes sense. i can't seem to get anyone to believe me though
The same problem here.
It's illegal for the FED to fund Gov't as per the Federal Reserve Act of 1913 set by congress.
That's why the Govt must tax or borrow before spending. That's why the TGA has never been negetive.
I feel like something is wrong with Mike's theory. But then, where does the money come from?
Have a nice weekend Mike.
how can Janet Yellen not know about this??
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Mike, I think your are wrong regarding government does not borrow.
Of course the state is a debtor. He prints a paper on which it says that I will give the owner of this paper 100 dollars including interest in, for example, 10 years back. The state then sells it to the central bank, the IOU ("I Owe You"), and issues freshly printed banknotes in return. This process is called “debt monetization”.
But since the state has promised to pay back the IOU in 10 years, the money has to come from somewhere. Either issue new IOUs or raise taxes.
The state doesn't need to pay off the debts; it's enough if it just services them, that is, paying the debts with new debts. And if you look into the past, these countries no longer exist to service the debts they believed they would have with new debts. That's why the amount of debt is of course of enormous social importance.
MMT emerged at the beginning of 1971 when the Nixxon abolished the gold standard. It was believed then that the state now had no budget restrictions. But that is a misconception
Go back to basics and study. You're not correct.
@Kathleen Bassett What exactly is wrong? Can u eloborate i?t
@Bosniake2:10
What happens if a country that has nukes counterfeit some dollars. I'm thinking about China or North Korea.
The interest rate should be equal to inflation rate
The real blame should be the White House, Treasury, Federal Reserve, and IRS documentation. There are governments sites that literally spell out "borrowing" from people. They also spell out "taxes to pay for spending". These dot gov website are just lying. People who are new to MMT may do some research by going to the source and come to their own conclusion that MMT must be wrong. The government agencies folks should know better and for whatever reason are continuously lying to the public. For example, here's a PDF from the White House website with "borrowing" listed 100 times and "borrow" listed 76 times.
https://www.whitehouse.gov/wp-content/uploads/2023/03/ap_20_borrowing_fy2024.pdf
For another example, here's an IRS document that says, "taxes—Required payments of money to governments that are used to provide public goods and services for the benefit of the community as a whole." The IRS is lying too.
https://apps.irs.gov/app/understandingTaxes/whys/thm01/les01/media/ws_ans_thm01_les01.pdf