By Nora Apter
Another great video by a student in Eric Tymgoine’s modern money course.
A little heavy but I guess it has to be for the course work.
I found this to be one of the better videos so far but ultimately for the amount of scene changes and interaction. On first viewing I do think there might have been one or two too many scene changes.
I’m fine with the scene changes… the only thing I missed in a sense was a little analogy from Mosler that I think helps break it down for non-econ types – and that is where he compares China’s purchase of US debt as the equivalent of a savings account at the Fed. Perhaps a little to deep for this one, or maybe not easy to work into the conversation flow, but I’ve been fond of that comparison since I first read it.
HERE’S ONE WITH OVER 1 million hits
you should read,if only to see as a way to “mass social media”
Out of the Mouths of Babes: Twelve-Year-Old Money Reformer Tops a Million Views
Posted on May 29, 2012 by Ellen Brown
The youtube video of 12 year old Victoria Grant speaking at the Public Banking in America conference last month has gone viral, topping a million views on various websites.
Monetary reform—the contention that governments, not banks, should create and lend a nation’s money—has rarely even made the news, so this is a first. Either the times they are a-changin’, or Victoria managed to frame the message in a way that was so simple and clear that even a child could understand it.
Basically, her message was that banks create money “out of thin air” and lend it to people and governments at interest. If governments borrowed from their own banks, they could keep the interest and save a lot of money for the taxpayers.
This was the best video produced, by a good margin.
It handily defends the policy action of selling government debt, something that is now required by government budgeting regulations to fill the un-taxed budget “deficit” gap.
(I now. I know. Prove it.)
The government is right now – this year – required by law and regulation to fund its expenses through taxation and borrowing.
I really like the fact that the core truth presented here for justifying the issuance of our public debt has nothing to do with fiscal responsibility or economic necessity. Rather, it ignores those arguments as simply wrong-headed. (I know. I know.)
I think people need to get their head around this sovereign(public) debt proposition in its fullness, as it relates to the MMT-construct of what it means to be a monetarily sovereign monopoly currency issuer in a modern monetary economy.
At 5 : 10 in on the video is the lynchpin that makes taxpayer-backed sovereign debt irrelevant. To some.
“Well Ken, as I said. The whole reason the government sells bonds in the first place is to offer an interest-earning alternative to reserves.”
This is directed to foreign holders of $-denominated funds(Current Account Surpluses) at the Central Bank, that we CALL reserves (??) and on which the CB pays no interest.
So, we’re $15 META-large in debt because of liquidity preferences of foreign bankers.
It’s time for some people to think a little more critically about whether it makes sense for the taxpayers-US to be $15 Trillion in debt for such an anti-social objective. How about if we told the taxpayers that we are indebting them so that we can pay foreign bankers the interest money?
Somewhere between the need to issue debt so that we do not tax too heavily, and the need to issue debt to satisfy the $-desire of foreign reserve-holders you will find the national monetary system of this country.
For the Money System Common.
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