Debt ceiling 'crisis' DOESN'T EXIST, US debt limit SHOULDN'T EXIST: MMT Econ Stephanie Kelton

This segment originally aired on May 11, 2023: • MSM's Debunked RACCOON... . Independent reporter Jimmy Tobias discusses the raccoon dog theory of covid-19. #coronavirus #pandemic #lableak
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[@LogicalThoughts7144]

Rising needs to get a better quality guest. Someone who knows what they are talking about.

[@zikemiller1466]

I had a piece of land with a small house. I added to that house. With an investment that tripled the size of the house. For an investment of 120 k . We took a 250 k property to a 620 k property. What are you talking about? Ripping the original house down to make it a 100 k property. Because for our investment we made 250 k. I really don't see the value in the debt limit. Or the value in me telling lumber outlets that sorry not going to pay for materials used on the addition. Because frankly probably a way to lose the whole property.

[@neetpride5919]

Yeah, Robbie can barely keep this boat afloat ever since Krystal and Saagar moved up.

[@jimreplicant]

Money printing machine goes brrrrrr! Lol these people are certifiable

[@Rob-fx2dw]

I can't imagine living in any establishment with idiots like them and I feel sorry for anyone who would have to share any institution with them. They are bad enough being in the community outside of locked institutions.

[@jondavis2206]

I don’t know much about economics, but I’m pretty sure we are going in the wrong direction.

[@turretplug6858]

Don’t need to know much about the macroeconomy to make a statement as factual as yours.

[@lesliefortier6595]

@@turretplug6858 Yes definitely. The Fed has been producing capital to build mega fortunes and to subsidize major corporations, while neglecting investments that would grow the economy and keep us competitive with the rest of the world.

[@toddcrickmore7196]

@@lesliefortier6595 Yes, the unprecedented upward wealth redistribution that has occurred over the past 50 years (involving some $50 TRILLION which has been stolen by the top 1% from the bottom 99%) has created an imbalanced, top-heavy concentration of wealth among a minuscule portion of the population that is unsustainable, and will eventually lead to an even worse collapse since 1929 if not corrected.

[@lesliefortier6595]

@@toddcrickmore7196 Yes, this is why austerity is the last thing that’s needed. What’s needed is spending into the economy to address supply chain issues, incentivise renewable energy by domestic resourcing, boosting manufacturing here at home. Biden’s bills have been designed to accomplish just that. According to plan $1 trillion should be matched by $3-4 trillion of private and corporate investment. This money will stay in our economy. The best way to address the many problems we face is with planned and focussed growth.

[@aaronhrynyk]

I might as well have asked my 13 year old about financial responsibility

[@jeffa6836]

If we can keep accruing debt without consequences then why are we paying taxes at all?

[@jeddafakee91]

It gives money its worth and also served as a wealth inequality control. Maybe not so much in the last few decades. Those are the things it can do, but it doesn't mean policy makers will use it as such

[@a1mi551]

Repeal the tax cuts for the billionaires. I don’t think cutting our already terrible services and grinding down the poor and elderly is going to balance the budget

[@tommyanomaly6193]

​@@jeddafakee91 It's not the government's job to fix income inequality

[@jeddafakee91]

@Tommy Anomaly ooh but It's government's job fix its impacts by making a police state

[@Rob-fx2dw]

It's con job. If taxes are not funding deficit budgets then credit of one sort is funding it. There is no way around this ever and eventually all credit must be paid back. It is paid back by the taxpayer public because government cannot pay for it's own debt. It ony has people to pay for it.

[@lokiprankster9177]

So, if I understand this expert correctly, US government should just print more dollars. Hopefully, she has heard for something called "inflation". In my opinion, we should return to convertibility to gold and prohibit government deficit by a constitutional amendment: The government can only spend as much as it collects through taxes.

[@k1ngdeadBeat]

No.... no, that's not it at all. Yes, we print money. Thats the governments job. But follow along here..... As she said, the treasury is the issuer of the currency. The government doesn't hold debt, it creates the debt. The purchase of that debt is a bond. People buy our debt, because debt is an investment. Debt is good for economic growth. We make money selling treasuries such as bonds. Government debt is not the same as your debt or my debt. We're going about this all wrong. For years, we've been putting financial illiterates into public office to make policies on subjects they don't truly grasp; monetary policy and economics.

[@WildchildProductionsTN]

@@k1ngdeadBeat financial growth cannot happen forever. It has to level off at some point. Everyone in govt want’s constantly increasing growth because they’re a parasite on the public whose greed will never be satiated. Constantly increasing growth is not possible especially in a country that has a decreasing rate of population growth and morbidly stagnant rate of wage increase.

[@DC-rd6oq]

@@k1ngdeadBeat Issuing more Treasuries creates inflation just like printing more money. And not only does it create inflation due to an oversupply of the T bill or T bonds, but they accrue interest. So we just keep issuing more Treasuries to sell to countries like China so we can pay them the interest we owe them from the last massive issuance of new Treasuries? What happens when they won't buy anymore? What happens when the USD isn't the sole world currency? NO, we need to get spending in check and we need to do it now.

[@a1mi551]

Look conservative d licker grinding the poor isn’t going to balance the budget.

[@tommyanomaly6193]

​@@k1ngdeadBeat Third world mindset

[@Paul-sz4nz]

no debt ceiling?? as in printing $ as we please? that should give confidence in the U.S. dollar 😟 How about a balance budget amendment? Congress has to cover expenditures with actual funds ..... So we decide to fund the military industrial complex with billions$...we think twice as that $ has to not just be printed.....has to be budgeted. 31 trillion $ debt is criminal. Using credit card to live large and passing bill to our children. Pity we have no politicians with a backbone.

[@edwardszysorhans573]

Watching this interview was like watching 3 5 year olds speculate on where babies come from

[@cjburns5]

This "Economist" is right, but is ignoring the consequence of printing more money. As others have suggested this idea would greatly devalue the dollar and we would all suffer for it.

[@praveenspike]

ROFL without a debt ceiling, the actual value of a dollar will be 0.

[@yoshi420]

EXACTLY 💯

[@TheHighpotinuse]

The currency comes from the federal reserve not the US government. The analogy with credit card limits is not applicable because the credit card companies are begrudgingly regulated to have those limits to curb predatory lending. There is no regulation of the federal reserve to prevent the US from over spending. In fact they are quite pleased with the debt trap that the US finds itself in.

[@RegentDeMarquis005]

The Federal Reserve Note is legal tender for debts public and private. But it is the private promissory note of the British monarchy govt. It has no value behind it because the Roman Vatican funded the US in 1933

[@marklampo8164]

The debt ceiling is unconstitutional. "We need to put grandma back to work for her nursing home bill, to say nothing of her defaulted student loan! Put her on the landscaping crew!!"

[@craigthompson3739]

Wow! Stephenie Kelton doesn't seem to understand basic economics. Pennies come from heaven! The US government can print as much money as it wants with no effect. Why didn't they ask her what causes inflation? I would have loved to hear her fantastical explanation. It is absurd that she is teaching a subject she does not understand.

[@tomjeff8262]

libertards will blame rich/greed for inflation. they normally don't say biden/bernie are rich. only conservative rich are greedy.

[@k1ngdeadBeat]

What's absurd is that folks like yourself don't understand how the US actually makes money. As she said, the treasury is the issuer of the currency. The government doesn't hold debt, it creates the debt. The purchase of that debt is a bond. People buy our debt, because debt is an investment. Debt is good for economic growth. We make money selling treasuries such as bonds. Government debt is not the same as your debt or my debt. We're going about this all wrong. For years, we've been putting financial illiterates into public office to make policies on subjects they don't truly grasp; monetary policy and economics.

[@craigthompson3739]

@@k1ngdeadBeat I do understand how money is created. Do you understand how increasing the money supply creates inflation? Please research "Weimar Republic, hyperinflation."

[@medusaskull9625]

@@k1ngdeadBeatwho is going to buy your bond if you keep on diluting its value? Just like any public company, you can issue as many public shares as you want, you just can't keep on asking people to invest in you. Have you ever seen any company in the world that kept on having public offering and stay in business? The reason they have PO is because they need more funding for a dying business? A good public company is the one with profit. People invest in those are hoping to reap dividend as a reward. The US government don't just diluting the value of the dollars, they robbed people of their savings.

[@k1ngdeadBeat]

@@medusaskull9625 China doesn't seem to have the same issues. Maybe because they aren't super fixated on an antiquated, arbitrary debt limit...

[@koesje1958]

Translation: We, the US Government can print endless amount of Dollars, the only problem is this has already been hyper inflationary.

[@yoshi420]

Might as well use leafs for money at this point.. 🤷🍃🍂

[@k1ngdeadBeat]

Well, um, we do....

[@yoshi420]

@@k1ngdeadBeat 💯🤣

[@medusaskull9625]

If that's the case, why bother to even have a budget or a debt ceiling? Just remove the debt ceiling and let's print more and fund everything. Let's see how that will turn out? You asked all the questions but the relevant ones.

[@RegentDeMarquis005]

Facts

[@erniekeller1093]

That's what we do.

[@bryson8918]

we already do that? you unironically think the federal government waits for tax payers dollars before funding all these illegally waged wars? all the national debt indicates is the total amount of money spent into the economy that the government didn't tax back.

[@sixdollarman1362]

This lady doesn't worry about a debt ceiling because she's talking about taxpayer money(not hers) that pays for it. I can't wait to see what corporation gets bailed out next with taxpayer dollars. But just go ahead and act irresponsible for your pet projects. The Federal Reserve isn't even part of the U.S. government and I personally don't believe they have our citizens best interests at heart. Whether Stephanie Kelton likes it or not, I believe we have a moral obligation to pay our bills and not overspend. For all the doubletalk she spouted off, she may have well just said that we are better than the rest of the world's economies and therefore, our debts do not count.

[@8301TheJMan]

Fed taxes DON'T FUND GOVERNMENTAL SPENDING! Taxation merely serves to take money out of circulation into order to tamp down on inflation, while also driving our currency, (aka -helping to provide; continued value for our fiat currency). You have to pay your taxes in us dollars, which means you need to get and hold onto US dollars to pay those taxes, which causes demand for US dollars, and this demand for US dollars is what gives our currency value. The fed government doesn't need to go get dollars from China, or through taxation, it literally spends them into creation and uses the central bank, (the Fed), as an intermediary between the Treasury and the private economy.

[@lesliefortier6595]

You're missing the point.

[@sixdollarman1362]

@@8301TheJMan Yes. The goverment is a ponzie scheme. Morally wrong and no better than anyone else with high debt that can't pay their bills.

[@sixdollarman1362]

@@lesliefortier6595 no, I don't think I am.

[@lesliefortier6595]

@@sixdollarman1362 Yes, you are. Taxes DO NOT FUND SPENDING. That is the point. Taxes are deleted from the money supply upon receipt, same as bond deposits. ALL SPENDING IS NEW MONEY. There is no purse to spend out of. It’s important to realise the difference between the originator of the currency and the users.

[@brianoblivion8218]

this “expert” is a maniac, this the reason there is inflation in america.

[@subjectofgov]

If this woman is correct and the gov of the US can simply spend as it wishes then the gov should not need taxes from the people to operate. Why take wealth from the people if the gov can just create it?

[@Jesus-kt5dc]

1) Drives Currency: Because you are obligated to pay taxes by law. This is the coercive mechanism that forces you to get a job and produce a service or good to purchase. 2) Slow Aggregate Demand / Control Inflation: If theirs too much demand for goods and services, you tax, or slow spending to decrease aggregate demand. Less dollars in the economy to purchase goods slows inflation. 3) Pigouvian Tax: Anything the government deems harmful to society, it taxes so that activity is done less. Sugar consumption, alcohol, gambling. 4) Limit Wealth: The reason you tax the rich isn't because we need their money to spend (fed gov just creates the money), it's to limit their wealth so they can't buy government (citizens united) and we have a functioning democracy/ constitutional republic.

[@robertholmes12]

Great point!

[@subjectofgov]

@@Jesus-kt5dc 4) in regards to taxing the rich to keep from them being able to buy government? Well, that failed in every aspect.

[@Jesus-kt5dc]

@@subjectofgov We don't tax the rich, because they're "job creators".

[@Rob-fx2dw]

Obviously she is an idiot when it comes to understanding basic concepts of how finance and accounting works or what they really mean.

[@sandraford4909]

A spoiled young woman, who has never known poverty or she would know about limits. There are limits to spending, taxpayers do not like the frivolous spending we saw during covid.

[@nphadnis]

By creating new debt, printing money, and giving free money to US Citizens, we have been committing grand larceny on all third world countries which have their foreign exchange reserves in US dollars. Printing more dollars is a double whammy. First the value of the dollar goes down, reducing the value of their hard-earned foreign reserves. . Second, we get free dollars which we use to buy (or in other words steal) more goods from third world countries using money we create out of thin air. To top it all, we are boasting about it in this video.

[@Rob-fx2dw]

Of course you are right. MMT economists like Kelton are wrong on many counts about what money is, how it gets it's value, who creates it, who burdens the cost and many other facts. They are living in fantasy world and are history deniers and when confronted with history they run way, lie about it or in some cases hurl personal abuse.

[@user-le8ix3ew8j]

US has never printed any money and give it to the blacks or the poor US citizens. Their tax reciepts far exceed their entitlement/ The billions that are printed are given freely are to the billionaires. namey ..... Billy the Goat, Warren Buffet , Testy Musk , Bezo the clown . etc. Lastly Fed money handout to her own group of banks like JP morgan and their fellow chosen bankers.

[@lesliefortier6595]

It ALWAYS matters what the money is spent on. Money spent here to invest in infrastructure, education, healthcare, R&D grows the economy, creates jobs, boost new business, shortens supply chains, grows income, affects inequality all things we want/need to happen.

[@Rob-fx2dw]

@@lesliefortier6595 The reality is if money spent by government grows the economy then money spent by others also grows the economy. The difference is people who spend the money they earn themselves value it more so it is more likely to grow the economy than money spent by politicians who are inclined to take no responsibility for how much they spend because it is not their money and comes to no immediate cost on their part. Did you ever hear of a politician who regretted wasting taxpayers money or paying too much for some scheme they did mot financialy contribute to from their own income?

[@Rob-fx2dw]

@@lesliefortier6595 Of course you have nailed it on that. It is technology that makes things cheaper and more plentiful. The problem is governments do not know what to invest in because they are run by politicians and they are investing other people's wealth when they spend. That is because government has to take people's wealth before they have it to invest and that taking reduces other's ability to invest their own wealth.

[@tomjeff8262]

this professor show the true color of libertards.

[@learningisfun2108]

Don’t bother addressing her arguments, just insult her. Don’t bother trying to understand the reasoning and economics behind her reasoning, just dismiss her. Why do the work of learning when you can sit smugly behind your ignorance and write abusive, simple comments?

[@skyheart9245]

It’s a circus but eventually they will raise the debt ceiling like before.

[@RegentDeMarquis005]

Secured party creditors here

[@harukrentz435]

"Just print the fiat currency more, what could go wrong?"

[@Rob-fx2dw]

The Idi Amin Dada (Uganda's dictator President) financial management idea. Print more money to pay for things that the government cannot afford to pay for. That went so well. - NOT !

[@carlosreyes207]

. . . HE WHO KNEELS BEFORE A FALLEN MAN NOT GRANTED , AND OPENS IN CONFESSION THE SECRET " THOUGHTS " AND " IMAGINATIONS " OF HIS HEART , IS " DEBASING " HIS MANHOOD AND DEGRADING EVERY NOBLE INSTINCT OF HIS SOUL . . .

[@donwaldo8687]

I agree with previous comments, this is one of the poorest quality segments I have seen on rising. Professor Kelton asserts that there should be no debt limit. From my observation these periodic emergencies appear to be the sole restraint on our federal government spending. Apparently her belief is that all government spending is good and the more the better. That is difficult to reconcile with the destructive bout of inflation we continue to experience. I'm stopping here, but this was a complete waste of time and amounts to nothing but progressive, modern economic theory propaganda. Someone with a real grasp of economics should have been included in this discussion.

[@TruBlu65]

I like that she is getting outed, along with any who "think" this way

[@wyldmon]

Yes let's let the people that print the money spend the money. No limit. Then go ahead and raise taxes. I've got all this monopoly money that will soon be worth more than us dollar!

[@daddystired]

If there wasn’t a limit. You can bet they would be putting MORE money back in their families pocket

[@sethjensen2291]

If it's good, Let's just sell 10 Trillion in treasuries each year . This is so simple

[@alp.9672]

debt jubilee

[@jeffwelker8114]

This is all political. Money will still continue to 🎉be collected, interest will be paid even if it took 2 or 3 weeks to resolve the impasse.

[@DC-rd6oq]

This woman has lost her mind. NO, you cannot keep going on spending sprees and cover the shortfall with new issue Treasuries without severe consequences. Modern Monetary Theory is quite controversial. MMT says that once a certain level of employment is reached, inflation ensues, and in order to offset that you have to raise taxes. Can you imagine? Don't set a debt ceiling. Issue new Treasuries to cover your over spending. Prices rise as a result and when employment hits a certain point, then at the height of the point where people are struggling to buy groceries due to inflation, wham!, increase their taxes. Yeah, right!

[@alp.9672]

How is this own an expert? I am so confused lol

[@DC-rd6oq]

@@alp.9672 I replied to you under another post.

[@jamesna6816]

I guarantee that raising the debt ceiling will not increase my wealth! I do not want to default! the problem with no debt ceiling is that our politicians will never stop increasing spending!Our Inflation King, Joe Biden, has continued to increase spending during high inflation which makes it impossible to decrease inflation. The result will most likely end in a recession.

[@kelleylinn143]

By this lady''s argument, the government of the US can spend as much money it wants becauase unlike a household, it is the issuer of money. Then why take money from households in the form of taxes? Let the government take care of it. Print what you need/want for the all the programs you need/want. What an asanine argument! Where is the pushback here @thehill ?

[@DC-rd6oq]

Awesome response. I was so entrenched in the economics of this woman's absurd comments that I didn't even think of what you said. Your response is priceless. Thank You!

[@alp.9672]

@@DC-rd6oq Seriously, the woman in the video is suppose to be the expert correct?

[@DC-rd6oq]

@@alp.9672 Yes, she is. The problem is that her "expertise" in economics is deluded by her socialist ideology. Modern Monetary Theory relies on a country having monetary sovereignty. I suppose it could make sense if we did not live in a global economy and if we had unlimited natural resources within our own borders. But we don't, so IMO the entire theory makes absolutely no sense.

[@alp.9672]

@@DC-rd6oq Ah, now I understand her response more thanks.

[@Rob-fx2dw]

@@DC-rd6oq The Idi Amin Dada (Uganda's dictator President) financial management idea. Print more money to pay for things that the government cannot afford to pay for. That went so well. - NOT !

[@JCResDoc94]

*hey it's steph! \^_^/!* how did i miss this? genius. _JC

[@markdeeter6510]

Start by getting rid of 80,000 IRS agents.

[@tylerdavis7646]

Everyone in the comments knows what will happens if you raise the debt ceiling and this lady is trying to gaslight us so hard.

[@Daddywarbuc]

I don’t think it adds up. If I print my debt away. Who pays for the increase on the back. We do.

[@bryson8918]

You don’t understand how monetary policy works in the u.s.. or really any country that retains the sovereignty of their currency.

[@Rob-fx2dw]

@@bryson8918 You have missed the point entirely. - 'Policy' is not how something works. It is about a plitical based pursuit which is aimed to do something but often fails.

[@bryson8918]

@@Rob-fx2dw no. you don't understand u.s monetary policy on an operational level. The government doesn't have to wait to collect tax dollars in order to fund something. The military industrial complex was waiting to compile sufficient tax dollars in order to profit off of illegal wars. That's just not how it works.

[@Rob-fx2dw]

@@bryson8918 You haven't so far put across a coherent understanding of financial matters let alone economics. It is evident in your confusion of government policy and finacial concepts. You say " government doesn't have to wait to collect tax dollars in order to fund something". Nobody has to collect money to spend it because they can borrow it so what is your point ? .

[@Rob-fx2dw]

All garbage from Kelton - the same MMT economist who said just over a year ago that the inflation which was rising was a sign of "growing pains" in the economy and was transitory.

[@johnmaisonneuve9057]

Actually, in the US it’s an approval process in Congress. There isn’t enough monies in all the banks to lend the Federal government. And what’s the biggest contribution is the elimination or near elimination of taxes on the big corporations and wealthy individuals. Of course, weapon systems that the military doesn’t even want. This is plutocracy with all the harm it causes. Extreme super rich, example Jeff Bedo of Amazon has something like 12 super homes, etc. Free markets for the extreme wealthy, devastated inner cities the norm for the masses. In Ireland the government caught Amazon for something like 20 billion in tax evasion and that’s only Ireland.

[@greglloyd147]

The sHill 🤦‍♂️

[@uncharted-desert-isle]

This woman is a cheerleader for 👹HyperBidenflation.

[@MattSmith-6868]

The problem is that people think there government shouldn't be run like a household. Spending more than you produce isn't a sustainable way to continue. Debt isn't bad but it can't be uncontrolled

[@TruBlu65]

Exactly. They like to spend other Americans' tax dollars, never fully getting it is their moola too

[@numbas3000]

How does the end of the petro dollar play into modern monetary policy?

[@MartyMcTube]

Ok then, eliminate all taxes and deposit 500 thousand dollars in every person's bank account every year since money can be created out of thin air. There will be nothing to buy in short order because no one will be working to produce anything, but c'mon! details details!

[@yesiamarussianbot3076]

There should be a debt ceiling because these idiotic politicians will otherwise have no limit to the spending.

[@patricklarsen8078]

Talk about saudi moving away from the dollar

[@antoniorenteria2896]

Anyone who says a debt limit shouldnt exist is an obvious foreign agent

[@robbyjones9813]

There needs to be a limit to spending, if there is no limit. From value of goods and services to any number of other issues would be affected.

[@lancecarona2554]

We can start with defense spending, and require that corporations that make billions in profit actually pay something in taxes.

[@subjectofgov]

@@lancecarona2554 under current tax laws corporations do pay income taxes if they don't distribute those profits or reinvest that money back into the company. The company can distribute profits to the employees as bonuses or to investors in which those people can pay those taxes. The company can reinvest that money back into the business in order to grow the business, hire more employees and build a better economy. If gov just takes those profits straight from the companies then they create a hardship on the company and the investors/employees.

[@lancecarona2554]

@@subjectofgov I believe that there are some 55 American corporations that make billions in profit that don't pay taxes, I also believe it was GE that actually received some kind of tax return while paying zero in taxes. attempts to change this has been met with republican filibuster.

[@lancecarona2554]

@@subjectofgov In addition I mentioned defense spending. Of the top 10 defense spending countries in the world, the US spends more then the remaining 9 combined. And I personally don't give two shakes about corporate or should I say shareholders hardship over the people's hardship.

[@lesliefortier6595]

We have to control the money supply. Money recovered through taxation or bond sales is DELETED from the money supply. It is destroyed, zeroed out. It does not get stored for future spending. New money is created for new business or to redeem a mature bond.

[@wolfswatch3645]

Jessica, I'm waiting for your response regarding what you said about Trump on your CNN Trump Vid Piece?

[@alexdeonversaagde]

It's over 10+ days to default 😅 buckle up. Unsecured creditors I wish you well ❤

[@michaelmeuser7763]

MAGA follow your oath to uphold the Constitution! Section 4 of the Fourteenth Amendment to the Constitution states that “The validity of the public debt of the United States … shall not be questioned.” upholding the Constitution is not optional.

[@Windpower187]

This woman is insane 😊

[@loladelawoyin5728]

Very, very insane. MMT proponent

[@yesiamarussianbot3076]

All three of them.

[@tylerdavis7646]

Inflation! Has she heard of it? The money there’s out in circulation the value it has.

[@DAVEBROWNE2004]

She's a product of liberal establishment education.

[@kennydeas1581]

There is ABSOLUTELY No Crisis The debt ceiling will be raised “just in the Nick of time” Republican s and Democrats will BOTH claim victory for All Americans! The Crisis will come one day in the future when the markets respond to the Terrible Fiscal Policy

[@micheldenostredame1468]

Can you imagine a person who feels like he have no debt and wants to buy a $1 item at a store. When the seller saw him, do you think he is gonna sold his goods for $1 or $10? I want to scaring you by asking you that, how many national debt per person do you American have? $1 or $10? And that's it's just counting by dollar currency, not counting by the value that your have taken from.🙂

[@RegentDeMarquis005]

Liesss

[@amarissimus29]

Infinity fits in my pocket. I divide by zero for justice. I am genius. Interview me I super smart.

[@ubulive]

Civics lesson Congress holds the purse strings, so how would it be Biden's fault if we default

[@Rob-fx2dw]

Again the MMT pushers including Kelton claim that the US cannot has not or will not default on it's debts. This statement is play on words that is deigned to deceive and would deceive the financially unwary. It is of course totally misleading since any country can default on it's debts and it has happened many times in the last 100 years or so in many countries. Kelton regularly put across a false narrative by using a restricted meaning of default to default in number of dollars rather than it's full meaning which also includes default in value. Would anyone be happy if someone borrowed their savings on promise of returning them then defaulted by paying back only a part OR paying back in money that would buy far less? Of course not. It is the same as borrowing people's money at a rate of exchange for you own personal money of $33 dollars and only paying them back at a rate of exchange of $20. There are two basic ways it has happened and that includes the default that happened in the USA in the 1930's with default by government. What happened in the 1930's during the depression years was the currency was backed by gold and the government would exchange an a certain quantity of dollars (roughly $20) for an ounce of gold. It was then common for people to hold gold as a way of saving and a hedge against inflation as it was policy of the government also to hold gold as backing for their currency. The government of FDR then confiscated the gold holdings of people in exchange for the $20 and only returned the gold at a cost to people of $33 a few years later. Of course many could not afford to get their gold back because of the higher cost. This effectively was a default in value so people and institutions who had previously had to surrender their gold without choice were less able to buy what the gold.

[@castlekingside76]

We need to pat our bills

[@subjectofgov]

Her argument isn't new, it's just not popular.

[@olderworker5729]

Tax the rich like they used to.

[@WalkOverHotCoal]

There is this thing called a "Balance Sheet". But the sound of it, things must be BALANCED. It means what goes in the "credit" column, ie. the money you earned, should equal the "debit" column, ie. the money you spent. If you are budget conscious like most normal people, there should be more in the "credit" column, and less in the "debit" column. It means you are a net saver. However, if the "debit" column is larger than in the "credit" column, then you have overspent. Not good. But you are consistently overspending, then you have problems. It means (1). You can't manage finance, (2). You don't respect money, and (3). You are in debt !!! Somehow, the US keeps believing that it is the richest country. Yet it is owing people big sums of money. Is that claim justified, or is it just the way the US is, indulging in self praise?? The US kept talking about China is setting debt traps for Africa. Ironically, the US is setting a debt trap for itself...for its future generations. It means young folks won't get any inheritance from the old folks. Worse still, they are inheriting massive debts from their previous generations.

[@Rob-fx2dw]

Well said. I totally agree that China is setting a trap for ignorant governments like those of Africa.

[@Rob-fx2dw]

I like you 3 points about what it all means. But you could have added an addition problem point to cap it off : - point (4) it means if you don't know the above 3 points and stick to them you are financial idiot. - Go back to school and learn what it all means.

[@WalkOverHotCoal]

@@Rob-fx2dw I am all for learning from someone who is so much smart than myself, someone such as your good self. How about doing myself a big favour, to tells us what is wrong with what I said? Besides myself being becoming wiser thanks to you, I suspect that many KZbin users will appreciate your contribution. Go ahead, make my day. I am listening.

[@Rob-fx2dw]

@@WalkOverHotCoal You must have not understood my point. I did not say anything was wrong with what you said. Just the opposite. The comments in point 4 are directed at those who don't understand not your self. I was merely pointing out that the 3 points you made should have an additional 4th point that if they don't know the points you made they should go back to school because they (not you) are financial idiots.

[@learningisfun2108]

With respect, you are missing the point that the US is a currency issuer, not a currency user (like you and I, local and state governments, and most countries around the world (except UK, Japan, China, Canada, Australia, all of whom print their own currencies). This changes everything. It means that comparing the US to a family who needs to sit around the kitchen table and balance its spending, is not appropriate. Rather, the US really needs to watch inflation; the debt and deficit are less relevant; the US will never default on its debt payments as it prints its own currency. It should use deficit spending to advance the economy and social programs. The government should be in the business of helping its citizens.

[@RegentDeMarquis005]

Treaties are the supreme law of the land. I self law am master. Bow down pilgrims. Or else!

[@shanesartin9485]

Democrats are raising the interest rates to slowly economy. What is the difference?

[@MrSmith-on1qz]

LOL. What a joke.

[@lakingscrzy]

Numbers aren't real.

[@FaithlessDeviant]

She must be one of the people consulting president Erdogan in Turkey.

[@zloyboy8]

more likely shes helping biden with his future plans, i mean look at all that $$ that comes back from gifting a certain country bilions of dollars. it won't ever cause inflation. 🤡

[@vladp4116]

Friday’s repeat

[@josesanto9305]

the important thing is to send more money to ukraine the contributing americans do not need that money more cash for ukraine now

[@pratahsinnetamby]

Such a superficial assessment of debt.

[@kevinoreilly6833]

You can not just print money to cover debts. When a country does such a thing in excess, the currency simply inflates to meet the market's equilibrium.

[@Rob-fx2dw]

The worry is these idiots thing printing more fiat credit money in a fiat money system can pay off existing fiat credit debt when all it does is create more debt.

[@DC-rd6oq]

THE VERY LEAST the Hill could have done is provide a brief intro to Modern Monetary Theory (MMT) and how controversial it is. MMT is like a Bernie Madoff ponzi scheme.

[@Rob-fx2dw]

It is very much like it.

[@Kevin-xw7gs]

MMT is a "theory" just like the theory of gravity. It's an explanation of how things actually work

[@Rob-fx2dw]

@@Kevin-xw7gs No. It is not a theory. Theories are supported by provable facts and supported by reliable evidence and MMT is not supported by proven facts or reliable evidence. Quite the contrary. It ignores evidence including historical facts and present reliable facts that contradict it. For instance why does say things that all money comes from the government and and money must be spent by the government before taxes can be paid when most money in the economy is created by private banks and taxes are paid from that money.? MMt fails on so may counts that it is just rubbish just like the so called theory of the sun rotating around the earth was theory that is no known to be false because it is proven by present available reliable observable facts.

[@DC-rd6oq]

@@Kevin-xw7gs Not true. MMT isn't really a "theory" at all. The name is a misnomer. MMT isn't an explanation based on observation and there is nothing scientific about it. None of the key tenents of MMT have been tested let alone observed because frankly, they don't exist. MMT is not trying to prove how the economy or monetary system actually works but rather is a proposal to change how we currently manage monetary policy.

[@merriemelodiesfan7425]

When people hear the word "debt" they don't really grasp the meaning of it. It's debt, we owe it and that's bad. They don't look further into it. Like who do we owe money to? Where does the money go? Where does the money come from? What did we spend the money on? Can you tell us anything about the budget other than there's a debt? No you can't because the people crying it about aren't serious about a cure for it whether it's the GOP voters and some of the independents, especially, the Republican politicians too.

[@robertholmes12]

The Federal Government paying off its obligations in "full and on-time" by printing up new dollars sounds great except for the eventual and hard fact of paying debts in dollars to countries that don't believe that we can pay them off. Why should anyone lend to a country that has borrowed more than it can raise in taxes? Why should any country or institution lend money to a country that is always having political fights over the debt? What happens when the interest on the principal exceeds the revenue coming in? What happens when the US dollar is no longer the reserve currency of the world? What happens when the petrodollar ends (Saudi Arabia was in talks with China in March 2022 to sell oil with Chinese Yuan)? The only reason money has value is because of the confidence people have in it and right now nobody should have confidence in the US dollar and many will soon not.

[@jonsmythe2301]

🤣🤣🤣🤪🤪

[@loladelawoyin5728]

And to think that this woman is a College professor..... sad!

[@thedelapo1606]

Notice they brought a college professor who teaches economics not an economist. That's why she's letting her ideology get in the way of basic knowledge about economics

[@MCkuloplower]

Go back to school Stephanie

[@alp.9672]

right how is she an expert?

[@nancyhirsch7768]

To all the clowns who actually buy the government should be run like a household or business might want to look at just how well Liz Truss's actions on the British economy or Greece did under "austerity".

[@tommyanomaly6193]

Reasonable austerity is necessary

[@merriemelodiesfan7425]

Attaching conditions to a debt ceiling is not a wise decision.

[@markfregly4148]

It is wise. Unrestricted growth is cancerous and encourages admin from proper use of funds. If the money keeps rolling in at larger amount why would they worry about waste or fraud or better ways to apportion the money. Because those people can always count on a larger check next year, even if they get nothing done. How hard would you work if you were guaranteed a raise no matter how bad your performance is

[@merriemelodiesfan7425]

@@markfregly4148 Depends on the job. Some people can't work for a guaranteed pay raise because some jobs doesn't give employees pay raises. Some people are in positions where they can't work for the rest of their lives whether it's just bad health or age. Balanced Budget never works for a country and no one really cares about the debt.

[@socialevolution7719]

This woman is a charlatan and her theory is magical thinking.

[@troykeeling4490]

I strongly agree!

[@couldbecooked6662]

Smart guest.

[@joemancini2988]

Get rid of the debt ceiling.