Double Entry Bookkeeping With Ravel: how government spending creates money 2/8

Using Ravel, it's easy to show that the basic argument of MMT--that government spending in excess of taxation creates money--is correct.
Ravel is available from / ravelationfor $7 per month; Minsky is available from the same site for $1 per month.

[@crawkn]

Since all money is created in conjunction with debt, it can never become a net asset of the entirety of the system, public and private sectors included. Only things of intrinsic value are net assets of the system.

[@davidwilkie9551]

No problem for digital natives to comprehend and distribute before the next Election?

[@adenwellsmith6908]

So here's a challenge for you. Double entry question. The state receives £1000 from Mr I'm a Peasant for his old age pension. One year's NI. What entries do you make in the accounts? The state receives £10,000 in NI from Mr I'm middle class for his old age pension. One year's NI. What entries do you make in the accounts? Are you going to use the Bernie Maddoff School of accounting loved by economics professors, and civil servants, or the real numbers What entries do you make a year later?

[@adenwellsmith6908]

Another example for you, and part will be easy, part will be hard I think for you software. You can get from the DWP, a sample, scaled to actual size of the sex, age, number of years of entitlement, pension being received, for the DWP's pension debts. ie. The inputs. Can you calculate the liabilities? Sum (future pay out * risk free discount factor * probability of making the payment) The life curve is easily found from the ONS. The triple lock is harder to value in, so start with inflation only Next can you handle joint lives? That's the frightning number that economists ignore because they are playing fantasy economics. Garbage in, Garbage out