Prof. Keen just dropped an absolute BANGER exposing why every mainstream economist is wrong about the government debt crisis. 📊 He literally runs BOTH models side-by-side in real time: ✅ The textbook fantasy they teach at universities ✅ The operational reality of how banking actually works The results? Mind-blowing. 🤯 With the same 1% deficit: ❌ Textbook model → Catastrophic debt spiral ✅ Reality model → Debt stabilizes, GDP grows This is the content that gets economists BIG MAD because it exposes the accounting tricks that make deficits look scary when they're actually how fiat money is created. 💰 15 minutes that will completely change how you understand government finance. Drop everything and watch this NOW. 👇 https://www.youtube.com/watch?v=p4_jZluTEUs&views

This is a great clarifying piece from the thought leaders of MMT responding to their critics. They make the point to differentiate between a generalized description of money mechanics vs. specific implementation like the U.S. model. As has pointed out in the past, they clearly understand how the U.S. system clearly works under today’s self selected fiscal and legal constraints, such as the TGA must be funded prior to spending, no Treasury overdraft at the Fed, and the Fed cannot buy bonds directly from the Treasury. Supporters of MMT often conflate the need for the Fed/CB to create new Reserves by spending or lending, with the Treasury creating new reserves by Gov spending, but which the authors do not. Anything here anybody would like to point out or discuss? Anything anybody would like to add?

Hi Everyone, In tomorrow's Legacy slot (1-3pm New York, 6-8pm London), I want to discuss what to do to make Ravel succeed as a commercial program--which it definitely is not doing at the moment. I had hopes that Ravel would become a force in the data analysis/business intelligence product space. It still has the potential to do that, but we need to both fine tune the program, and market it effectively--both of which will require funds that I currently don't have. I have some ideas on how to raise those funds however, which I'd like to discuss with as many of you as is possible. So, if you can make it, and if you have an interest in Ravel and data analysis, please turn up. The week after I'll start a set of three lectures on Ravel, after which I will restart the lecture series with the first topic of "Why we need a new economics".

I deliberately have abstained from posting for a lengthy period of time because I felt I had nothing important to contribute to this forum’s discussion. However, today I came across Bill Mitchell’s excellent summary about government’s spending activities, which I thought would be worthwhile to share it with you. https://billmitchell.org/blog/?p=61971

Still noodling on how to describe the monetary system in words my Mum could understand. Regarding money creation and the mind bending reality of 'money out of thin air'. The metaphor that is resonating with me is the concept of Immaculate Conception.Folks understand the principle of it and this is very much like how money is created. Unlike anything else it is created with no 'work', with no production cost, with no combination of materials, with no effort whatsoever. I think this is why it is so abhorrent to our common sense. How can anything be produced from nothing? This for me is the root of the misdirection of 'the national debt'. We know that the government does not have to 'work' to find the money to spend (Immaculate Conception of government spending). But if you don't appreciate the reality of this Immaculate Conception, you will continue to ask the question 'but where will we find the money', 'but, we need to borrow to pay for stuff', 'the national debt is unaffordable' etc etc. The reverse of the Immaculate Conception is the destruction on money into nothingness and deletion - this logically is not too difficult if you accept immaculate conception but too difficult to grasp if you don't. There is also the Private version of Immaculate Conception when banks create money for loans and their destruction into the void when the loans are repaid. The story of money creation is so shocking to the 'common sense' that I for one will be describing it in an uncommon way because that is just what it is - a totally uncommon process. No production cost, no need for materials, no need for labour - money from nowhere with no cost or 'for free' as the rest of us might describe it