I am aware of the fact that what I am summarising in this video is controversial. But if you want to understand what am presenting in a fuller way I suggest you watch the following film which is available to rent or purchase here: findingthemoney.vhx.tv/packages/finding-the-money/videos/findingthemoney
Ken Webb. - Why can you not understand that being able to issue your own currency does not alter the fact that excessive increases of it such as massive deficits are abuse of the principles of sound competent money management ? The example of a person or company which issues and sells it's own bonds is an example that parallels that of countries which create their own fiat currency and excessive issuing of a company's own bonds to finance its spending will send it into oblivion just like a county's financial affairs will go into financial ablivion if excessive issuing is carried out. Ther are numerous examples of countries doing that including Zimbabwe, the Weimar republic, Hungary. Ther are numerous examples of companies who issued excssive financial assets such as more and more bonds and the company has gone broke because the documents they issued were in excess of what they earned.. Take for instance Bernie Madof.
Ken Webb - Can you drive a car before putting gasolene in it or have to put gasolene in it first before you can drive it ? It seems you can't tell the difference between being able to drive on an empty tank and having to have gasolene in it before you can drive it rather than driving it before you put the gasolene in it because your statement about recording the scoring in a game being analogous to the government spending makes such a mockery of the time line of events in the economy. Have you ever been to game and seen the play on the field or in race? What happens first in game ?- Does the scoring take place first or the goal or runs or race finish on the field have to take place first? - Of course it does. You say creating money is bit like adding scores to scoreboard. Totally absurd statement that defies the time line of events and other relevant facts . They are not related at all in concept and not a valid analogy at all. Adding scores is mere passive reaction in relation to game which is being played. The scores are after the fact records of which happens in the game on the field of play where as the creation of money is an active participation which has effect in the economy. Only person of either frightful financial and economic ignorance would say such thing or someone making an attempt to mislead through misunderstanding that the time line of events in scoring which does not occur before an action on the field of pay. Hint .- For start - Think about what happens first. Were you born before you die or the other way around ? Otherwise you are living in a dreamland.
@@kenwebb You are on the wrong track. The reality is not about finding the money. The reality is about correct efficient allocation of available resources be they human or physical and the money is Not a resource in that but is only a way of distibuting those resouces efficiently. Central governments do not just have the automatic ability to know the best allocation of resources and make horrible decisions on allocations of resources which too often are just made for political reason. The MMT idea of this is grossly wrong. It fails to acknowledge the correct sequence of events that must occur before an efficient allocation of resources takes place. Creating more money by the government selling bonds or taxing as government does when it spends and runs deficits does not just create more wealth because it misallocates resources. If the principle that MMT puts across that creating more money automatically created more goods or services was actually true then it would be true for every form of government and not just the Federal central government. It also would be true for every person and every business but they deny that. Tell me why that is not there policy but it is their policy to restrict it to only the monopoly central government.
@@kenwebb I will make it easy for you by asking a few simple questions about MMt taht you can deal with in your own mind after thinking about it. . Why do you believe the MMT idea that they put across which says the money must be spent by the government before taxes can be paid (Mosler, Randall Wray, ) when most of the money in the economy is created by private banks when they create new money and that money is spent on buying products with embedded tax and on paying wages of people the borrower of that money employs and sometimes pays tax bills directly? Why would you believe the MMt idea that taxes put value into the money and get it accepted when they did not do so in all cases of countries where despite taxes inflation made the money worthless and rejected by the people and then by their own government. Taxes and worthless money together at the same time. Why would you believe the MMt idea that taxes put value into the money when if they actually did even more tax would make it even more valuable to the point of making it infinitely valuable if taxes were 100%? Can you anser any of these with rational reasons ?
Ken Webb. -You made statement that the money for covid was not borrowed. That is blatantly wrong and grossly distorts the facts as well as leads you into wrong conclusions derived from that false information. You clearly understand that the money for covid was borrowed from the country's reserve bank just like all new money in fiat system is created and borrowed by the government. Those reserve banks are Bank of England in the UK and bank of Canada in Canada and Federal Reserve bank in the U.S.A. The explanations of reserve bank operations in lending to government which borrows the money in exchange for treasury securities are clear and simple to understand for anyone who has modicum of financial ability. Example - The Bank of Canada's explanation is " Money is created in the Canadian economy in two main ways: through private commercial bank loans or asset purchases, and through the Bank of Canada’s asset purchases. The majority of money in the economy is created by commercial banks when they extend new loans, such as mortgages." And further :-" As the Bank of Canada explains, its purchases of Government of Canada securities are not a way of financing the government’s spending and debt at no cost; the federal government has to repay the securities when they become due." reference the bank of canda's explanation :- 'How the Bank of Canada Creates Money Through its Asset Purchases'. at lop.parl.ca/sites/PublicWebsite/default/en_CA/ResearchPublications/201551E#:~:text=Appendix%20%E2%80%93%20Money%20Creation-,Executive%20Summary,new%20loans%2C%20such%20as%20mortgages.
@@kenwebb You say "we can't let things like debt and deficit hold us back". Why don't you check out the situation in Uganda in the 1970 where the dictator president - Idi Amin Dada when was told by the government Treasury that it was out of funds he decided that debt and deficit would not hold the government back so decided they should just print more money. That all ended so very badly because inflation soared. What would you learn from that reality? Or would you be like those who are insane who don't learn from historical facts and just repeat things that failed before ?
@@kenwebb This is simple question that does not require a repeat of what MMT economists say. Why do you think that some economist who has never been involved as central bankers in money creation but are just MMt economists would know better than the Central banks themselves have explained how new money is created to fund government spending ? .
I am aware of the fact that what I am summarising in this video is controversial. But if you want to understand what am presenting in a fuller way I suggest you watch the following film which is available to rent or purchase here: findingthemoney.vhx.tv/packages/finding-the-money/videos/findingthemoney
Ken Webb. - Why can you not understand that being able to issue your own currency does not alter the fact that excessive increases of it such as massive deficits are abuse of the principles of sound competent money management ?
The example of a person or company which issues and sells it's own bonds is an example that parallels that of countries which create their own fiat currency and excessive issuing of a company's own bonds to finance its spending will send it into oblivion just like a county's financial affairs will go into financial ablivion if excessive issuing is carried out.
Ther are numerous examples of countries doing that including Zimbabwe, the Weimar republic, Hungary.
Ther are numerous examples of companies who issued excssive financial assets such as more and more bonds and the company has gone broke because the documents they issued were in excess of what they earned.. Take for instance Bernie Madof.
Ken Webb - Can you drive a car before putting gasolene in it or have to put gasolene in it first before you can drive it ?
It seems you can't tell the difference between being able to drive on an empty tank and having to have gasolene in it before you can drive it rather than driving it before you put the gasolene in it because your statement about recording the scoring in a game being analogous to the government spending makes such a mockery of the time line of events in the economy.
Have you ever been to game and seen the play on the field or in race?
What happens first in game ?- Does the scoring take place first or the goal or runs or race finish on the field have to take place first? - Of course it does.
You say creating money is bit like adding scores to scoreboard. Totally absurd statement that defies the time line of events and other relevant facts .
They are not related at all in concept and not a valid analogy at all.
Adding scores is mere passive reaction in relation to game which is being played. The scores are after the fact records of which happens in the game on the field of play where as the creation of money is an active participation which has effect in the economy.
Only person of either frightful financial and economic ignorance would say such thing or someone making an attempt to mislead through misunderstanding that the time line of events in scoring which does not occur before an action on the field of pay.
Hint .- For start - Think about what happens first. Were you born before you die or the other way around ?
Otherwise you are living in a dreamland.
Check out this film for a fuller answer. findingthemoney.vhx.tv/packages/finding-the-money/videos/findingthemoney
@@kenwebb You are on the wrong track.
The reality is not about finding the money. The reality is about correct efficient allocation of available resources be they human or physical and the money is Not a resource in that but is only a way of distibuting those resouces efficiently.
Central governments do not just have the automatic ability to know the best allocation of resources and make horrible decisions on allocations of resources which too often are just made for political reason.
The MMT idea of this is grossly wrong. It fails to acknowledge the correct sequence of events that must occur before an efficient allocation of resources takes place. Creating more money by the government selling bonds or taxing as government does when it spends and runs deficits does not just create more wealth because it misallocates resources.
If the principle that MMT puts across that creating more money automatically created more goods or services was actually true then it would be true for every form of government and not just the Federal central government. It also would be true for every person and every business but they deny that.
Tell me why that is not there policy but it is their policy to restrict it to only the monopoly central government.
@@kenwebb I will make it easy for you by asking a few simple questions about MMt taht you can deal with in your own mind after thinking about it.
.
Why do you believe the MMT idea that they put across which says the money must be spent by the government before taxes can be paid (Mosler, Randall Wray, ) when most of the money in the economy is created by private banks when they create new money and that money is spent on buying products with embedded tax and on paying wages of people the borrower of that money employs and sometimes pays tax bills directly?
Why would you believe the MMt idea that taxes put value into the money and get it accepted when they did not do so in all cases of countries where despite taxes inflation made the money worthless and rejected by the people and then by their own government. Taxes and worthless money together at the same time.
Why would you believe the MMt idea that taxes put value into the money when if they actually did even more tax would make it even more valuable to the point of making it infinitely valuable if taxes were 100%?
Can you anser any of these with rational reasons ?
Ken Webb. -You made statement that the money for covid was not borrowed.
That is blatantly wrong and grossly distorts the facts as well as leads you into wrong conclusions derived from that false information.
You clearly understand that the money for covid was borrowed from the country's reserve bank just like all new money in fiat system is created and borrowed by the government.
Those reserve banks are Bank of England in the UK and bank of Canada in Canada and Federal Reserve bank in the U.S.A.
The explanations of reserve bank operations in lending to government which borrows the money in exchange for treasury securities are clear and simple to understand for anyone who has modicum of financial ability.
Example - The Bank of Canada's explanation is " Money is created in the Canadian economy in two main ways: through private commercial bank loans or asset purchases, and through the Bank of Canada’s asset purchases. The majority of money in the economy is created by commercial banks when they extend new loans, such as mortgages."
And further :-" As the Bank of Canada explains, its purchases of Government of Canada securities are not a way of financing the government’s spending and debt at no cost; the federal government has to repay the securities when they become due."
reference the bank of canda's explanation :- 'How the Bank of Canada Creates Money Through its Asset Purchases'. at lop.parl.ca/sites/PublicWebsite/default/en_CA/ResearchPublications/201551E#:~:text=Appendix%20%E2%80%93%20Money%20Creation-,Executive%20Summary,new%20loans%2C%20such%20as%20mortgages.
Check out this film for a fuller answer:
findingthemoney.vhx.tv/packages/finding-the-money/videos/findingthemoney
@@kenwebb You say "we can't let things like debt and deficit hold us back".
Why don't you check out the situation in Uganda in the 1970 where the dictator president - Idi Amin Dada when was told by the government Treasury that it was out of funds he decided that debt and deficit would not hold the government back so decided they should just print more money. That all ended so very badly because inflation soared.
What would you learn from that reality? Or would you be like those who are insane who don't learn from historical facts and just repeat things that failed before ?
@@kenwebb This is simple question that does not require a repeat of what MMT economists say.
Why do you think that some economist who has never been involved as central bankers in money creation but are just MMt economists would know better than the Central banks themselves have explained how new money is created to fund government spending ?
.