Stephanie Kelton: How The Political Class Has LIED About Deficits

Author of 'The Deficit Myth' Stephanie Kelton shares insight on how corporate bailouts attribute to the increase in national debt.
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[@dancook4993]

Where was the deficit when they bailed out Wall Street 1.5 trillion and counting?

[@frederickmeyers8965]

Exactly!!!

[@mimi-zh1ko]

29 TRILLION so far. They're the first in line every time!

[@Botagofo]

The money got paid back therefore it doesn’t count as deficit genius

[@twoshedsjohnson8540]

It's MMT in action that bails out Wall Street. If you think MMT is used for only benevolent goals, think again.

[@daniellittlefield8487]

MMT is an utterly flawed and dangerous concept. It is an attempt to justify uneconomic spending behavior by pretending that the actual laws of economics don’t really apply. The irony is that these behaviors will lead to greater inequality and a lower standard of living. I would note that, to date, we’ve gotten away with running enormous deficits because the U.S. economy is so incredibly productive, because of continued QE, and because the U.S. is the depository of last resort for the rest of the world. However, this cannot continue that forever. The real tipping point will occur when the rest of the world does not view the dollar as the reserve currency anymore. The real question is how long can we keep up the current behaviors before we reach that tipping point?

[@ohawwgeez3112]

The deficit doesn’t matter when it comes to war.

[@JM-er2yl]

Or tax cuts for the super rich, or wall street & corporate bailouts.

[@Houndini]

All this going on right now. I feel we getting ready pushed into other war where we foot the bill totally for other countries. Only for few rich get richer. Not counting lives & wounded vets it going cost. Once the dust settles all that was done make other countries hate us more. Over very few people's profit & personal greed.

[@jimmyr9468]

The deficit only matters when a Democratic is Prez, When their party has the Presidency, the Republicans have amnesia on the subject.

[@GamingKeenBeaner]

@@StarD2TwinFlamez They are psychopaths and love a good excuse to kill people. They'll do that at home too if we don't rein them in. We've made a big mistake in this nation by letting psychopaths run everything.

[@fw1421]

Or corporate bailouts!😡😡😡

[@crobinson2624]

If you can find money to build things that kill people, you can find money to help people.

[@fortusvictus8297]

Sounds cute, looks cute, is cute. But also not in line with anything in Human history...or nature for that matter.

[@Easy_Skanking]

The thing is, they don't "find money". They just add money to accounts electronically. There's no backing like the previous gold standard and no need to even print physical money. The US dollar is another fiat currency and is a house of cards.

[@fortusvictus8297]

@@Easy_Skanking Just because the numbers are beyond the scale of human comprehension doesn't mean they are fake. If you don't pay your international debts there are international consequences, usually in the form of 'territory annexation'...just ask Ukraine and Georgia more recently, but historically it goes back as far as recorded history... Trojan War? War of debt settlement ect. The only way to avoid that is to either maintain debt under a level that will crush you when a crisis inevitably does come OR maintain enough of a military threat to prevent anyone from trying to have a go. If a meteor struck the USA tomorrow on top of everything else and the USA 'canceled its debt' or ignored it don't think for a second every US territory in the Pacific and probably even Alaska and Hawaii would no longer be part of the USA.

[@coolworx]

What you don't understand is that our wars are merely investments to secure resources. In the end, they're money makers for the folks who count. Throwing money at a bunch of low IQ poor people doesn't pay off.

[@crobinson2624]

@@coolworx have you gotten your share of those stolen resources and wealth yet? What you and others fail to realize is that people are a country’s most valuable resource. People build roads and homes, they cook and clean, and they breed and have more little people. When you don’t invest in people your empire starts to crumble.

[@Banana_Split_Cream_Buns]

Reminder: Stephanie Kelton would have been Bernie's Secretary of the Treasury.

[@dashx1103]

Doubtful. If you read her book, she expresses some frustration with her time in the Sanders camp.

[@Banana_Split_Cream_Buns]

@@dashx1103 I will read her book. It's on my list. But the Bernie 2020 camp was by and large, terrible. It was filled with many Clinton type staffers that wrecked it from within.

[@reddirtwalker8041]

Which is scary as shit.

[@digitalperson108]

@@Banana_Split_Cream_Buns because...blue...red....two cheeks of the same ass really. Not sure how we can really change that.

[@LostInTheMovies]

@@Banana_Split_Cream_Buns What was terrible about it and what did these Clinton type staffers do? It seems like everyone agreed that this was a remarkably effective operation in late February, then Biden surged and everyone changed their mind. But Bernie always had a tough hill to climb, the media was utterly dismissive when it wasn't hostile, and this turned out to be a worse year for populist insurgency than might have been suspected yet he still managed to achieve frontrunner status for what is usually the most crucial month of the primary season. There were mistakes but I don't think it was a disaster.

[@cherriegetison6093]

Kelton was on Jimmy Dore a few years ago. Her discussions blew my mind! The amount we are taxed has no relation to the amount the U.S. spends.

[@twoshedsjohnson8540]

Yes...it's called deficits.

[@cherriegetison6093]

@@twoshedsjohnson8540 When you borrow money you invented from yourself, you have no incentive to pay yourself back. That's why countries who share a currency with other countries are more tied to the weight of their debts than ones that have their own currencies. It's why politicians can cut taxes in higher brackets and a few months later become deficit hawks. The consequences aren't severe at all, at least for those of us who matter.

[@twoshedsjohnson8540]

@@cherriegetison6093 "When you borrow money you invented from yourself, you have no incentive to pay yourself back." That way of thinking is what will bring our demise as the value of the dollar will become worthless.

[@cherriegetison6093]

@@twoshedsjohnson8540 Don't worry fam. The petrodollar has got you covered. So while countries are bombed overseas, you never have to worry about how strange it is to simultaneously worry about deficits while also providing tax cuts that never trickle.

[@twoshedsjohnson8540]

@@cherriegetison6093 And if you think MMT won't end up funding more interventionist senseless wars, you're mistaken.

[@redcapitalist]

nothing to see here. the wealth transfer program is working perfectly. as intended.

[@johnsuder7671]

Thank You for having Stephanie on.

[@anthonytwohill9726]

The reason they haven't found any general Inflation is because the money that is "printed" doesn't enter the general economy. It finds its way mostly into financial markets and cost of living via asset bubbles. The way they calculate inflation no longer reflects how people are spending or how products are made. The real piece of information tied to MMT is that trickle down economics doesn't work. The money never trickled down.

[@williams9291]

shes right, but what happens when the idiots in congress don't turn off the money spicket when we hit inflation? When they raise interest rates to combat the inflation that puts us into an instant recession.

[@deelee4639]

@@williams9291 they borrow much more money from other countries. Like China. And then wonder why they wanna start a war with China...

[@funnyguyinlondon]

Have you been watching the Mark Moss channel?

[@Max0r847]

Right. Massive massive inflation in cost of living via the rich bidding up real estate prices so high most people can't afford to buy a house, so they can pay even HIGHER rents than mortage payments would be, to these landlords. That's because the money creation is channeled into propping up the bottom line of the ultra-wealthy. All grotesque wealth has to be taxed away in order to achieve two things. First: To take away the power of concentrated wealth to control land. Second: To take away the ability of concentrated wealth to generate inflation by deciding, at its own whim, to suddenly dump a bunch of money into some area. I would say the best way to create money is to do so via a UBI. Preventing landlordism and real estate land conquest would prevent this from massively inflating rents and housing prices. Of course, most of what I'm saying here is so radioactive to capitalists that they will never in a million years even consider this.

[@anthonytwohill9726]

@@funnyguyinlondon never heard of him

[@joelingalls4946]

How about the fact that the spending is benefiting Wall Street while they send the $600 crumbs to the people

[@charlierodriguez8489]

"The deficit is out of control" Let us do QE for another decade.

[@sergeikhripun]

Once That’s true but once the US dollar is no longer reserve currency of the world the free lunch is over. Russia and China are dumping the US dollar. The others countries that dropped the US dollar are Iraq, Libya, Syria, Iran, Venezuela and we know what happened to them.

[@charlierodriguez8489]

@@sergeikhripun Yeah, but Russia and China aren't little countries. Russia approached China in 08 trying to get them to drop the dollar, which would have worked. But, China is too invested in American consumers and they loaned the US money, so China denied the move with Russia ...and here we are.

[@trollamos]

@@sergeikhripun people will still want dollars to buy stuff with and to invest in an stable area with good infrastructure, legal system, and education. You'll be fine.

[@twoshedsjohnson8540]

@@charlierodriguez8489 China is slowly dumping their dollars and investing in American assets. That's a win for them as they get the benefits of rising asset values from inflation.

[@johnhostler6831]

This is like watching a new version of “The Emperor has no clothes”.

[@bjorncarlgren710]

I read my 20 yr old book fair The Principal New Clothes to my kids all the time.

[@SweetWolfie]

Social safety nets, good. Corporate welfare and congressional enrichment, bad. Defund the government.

[@Panda_J1]

Defund the politicians. They get paid whether the country is doing good or bad

[@MyContestPix]

• Austerity, fiscal responsibility and deficit hawks only come out of the woodwork when we have a Dem POTUS but conveniently disappear when we have a GOP POTUS

[@pfzht]

Probably because policy direction and national sovereignty are what really matter.

[@twoshedsjohnson8540]

Yes, they're called RINO's

[@Tron8086]

Great speaker. Rising really getting top notch guests.

[@jorymiller3607]

You should have Stephanie Kelton on more often to talk about the world view and problem solving as viewed through the eye of an MMT economist. This could really change the way people think about and solve problems in the future. love your show, keep doing amazing.

[@SamiKotiranta]

You call it nowadays social corporate wealthcare...

[@kidd7359]

Don't forget the freeloading rich people

[@NUCLEARARMAMENT]

It's simply the natural progression of capitalism. But yes, you can refer to it as "lemon socialism," if you will.

[@anthonytwohill9726]

Get Nomi Prins to sort you guys out. Most of the new money goes directly into assets (now mostly equities) so that's where you're seeing inflation.

[@trollamos]

Asset inflation. But that's a legal problem, it doesn't have to be backed or allowed. Let it crash, as it eventually will, and fund good stuff instead while having a job guarantee.

[@LongDefiant]

MMT is being used right now, but the "drain" to remove money from the economy isn't taxes, it's the coffers of the wealthy.

[@pfzht]

See also foreign aide scams.

[@TheRantingRooster]

Government spends currency into the "economy" and taxes remove that currency. If you're "worried" about inflation, then tax the heck out of the rich to pull some of that currency out of the economy.

[@mt-zf6xp]

Actually the rich are really good at taking currency out of the economy. That's part of the problem. You just need to tax them more and put their money back into the economy. That's more of a long term thing for stabilizing the economy and keeping these collapses from happening though. We gotta move zeroes around for now to help people.

[@NUCLEARARMAMENT]

You are a bunch of morons. Taxes don't affect the rich, it gets passed on to the 99% in the form of higher prices and lower wages, and the profits they reap remains the exact same, and inflation goes up! Not to mention the truly rich control the banking system that is responsible for 97% of all new money and currency creation in the global economy, thanks to the way fractional reserve banking works! So, the wealthy will just pay your higher taxes levied with money they create out of thin air, which they will literally PROFIT from as well but don't pay tax on either, since interest payments received by wealthy elites from their own financed tax loans would be fully tax-deductible! Get a clue, SMOOTHBRAINS! Learn how the system REALLY works!

[@twoshedsjohnson8540]

Government extracts wealth out of the economy and inefficiently wastes/misallocates it on bureaucratic red tape and cronies lining up at the trough.

[@dragonbutt1218]

@@NUCLEARARMAMENT They do know how the system works. They both said nothing that disagrees with your very puzzling rant. Maybe you are just not comprehending correctly what you are reading.

[@andreasbyczkowski3435]

Lol) The solution is to firstly “create” funds to solely rescue the biggest DC-deeply-connected players, then collect dah grift and after the recovery wyzely and responsiply clamp down on spending by remembering to pinch pennies even more on them’s economically vulnerable. “Capiche?!!!”.

[@bbqseitan7106]

“It’s coming bro” What Fiscal Conservatives have been saying for 100 years every time we go past the deficit. The deficit doesn’t matter when we control our own currency, we’ve known that for decades

[@twoshedsjohnson8540]

Deficit spending is inflation...and it shows up all throughout our economy...and it hurts the very people it's supposed to help.

[@bbqseitan7106]

@@twoshedsjohnson8540 inflation doesn’t happen with deficit spending It happens when retailers want it to happen, any excuse they can get Often it’s inflated by artificially sinking supply like when they kill a bunch of dairy cows to make milk more expensive per gallon cuz there’s less cows

[@twoshedsjohnson8540]

@@bbqseitan7106 If farmer's purposefully "sank supply" that would end up not meeting the demand for milk, someone else would come along and produce milk to meet that demand...and prices would decrease with the newly growing supply. Economics 101.

[@orionxavier6957]

5:36 "And the way the money is created is that the Federal Reserve uses its keyboard by changing numbers in the appropriate bank accounts." "What is money? Money is just an entry in a database." -ELON MUSK

[@samhu5878]

What really is disturbing is how that money is spent not the quantity. We spend millions for wasteful things which only create deficit but gives no service.

[@carolynbrzezinski5779]

The new book, The Deficit Myth is a great! Learned so much. So, when they start pulling that "oh, but what about the deficit?" baloney (and you know they will!), we can now call their bluff thanks to Stephanie Kelton who has educated us on Modern Monetary Theory, or MMT for short. Read this book to arm yourself with the knowledge that we CAN in fact afford to spend on the social programs we desparately need. Thank you Krystal and Saagar for having Professor Kelton on your show!

[@NUCLEARARMAMENT]

Modern monetary theory and mechanics will be the salvation of us all!

[@kayjenkins1307]

You should have Stephanie Kelton on more often especially when discussing a spending Bill that benefits the public. People need to Understand MMT and how our politicians and MSM are lying about an issue. Stephanie can debunk their arguments.

[@quinnolivarez6911]

Money printer go brrrrrrrr and it’s ok

[@69runway]

Why didn't she talk about the interest that has to be paid on the debt? Because the theory is then reduced to absolute BS.

[@mikeh7842]

The theory holds that there's no need to sell bonds to borrow money. That's just a policy choice to manipulate interest rates.

[@drewtaylor1153]

This conversation is so invaluable

[@Richard_the_V]

Very easy to understand point of view. Ty very much for the breakdown.

[@twoshedsjohnson8540]

It's easy to understand because it's childish.

[@zazoomatt]

Brovo Stephanie Kelton Thank YOU So Much !

[@danringdahl41]

Thanks for explaining how this works. Been hearing lots about how "deificit hawkery" is bad but I didn't know why till now.

[@philipgadala6879]

No deep follow questions (just some clarity ones)... Stephanie came on and hit them with a wrecking ball and they just sat back and tepidly smiled. The entire show is centered around conversations and criticisms of power and people who purse it but when someone comes on and challenges the very center of American power they both sit back like a couple of intimidated students too afraid to ask follow up questions. Krystal and Saagar do great work and it's been a pleasure getting to them and their content style in the past 12 months, but this kind of ignorance is everywhere in popular news shows and can have really bad consequences (least of which allowing people who do understand to operate with impunity). No one here is really engaging like they really know what she's talking about and it's one of the most significant ideas and will shape our future for generations and they can't engage like they would with someone like Michael Moore who has the mental computing power of a subterranean mammal. And the worst part is in her entire book this is her main complaint, no one gets it and because the people responsible don't understand the engineering even the most sincere and well intentioned actions could cause irrevocable harm.

[@stupideunuchs6513]

To be fair even if you get it, children like Stephanie can't take basic criticism or do any proofing despite saying it's an axiomatic process. All of economics is psuedoscience theistic BS.

[@philipgadala6879]

@@stupideunuchs6513 her answers are childish but her assessments are bold, forget the economic trap of abstracting people (which she applies to her solutions). The thesis is powerful and worth real investigation, not this room temp cordial shyness.

[@brentshowers741]

Modern monetary theory is vital during this time

[@brentshowers741]

@CosmicDamian your assuming something that hasn’t happened. much like most of its detractors your working from a position that something might happen not that it has in the past when tried working backwards from conclusion to cause. I’m sorry your bias is clear even if it isn’t to yourself.

[@henrygustav7948]

@CosmicDamian As MMTer's understand it, the hyperinflation will come if we DON"T spend all that money on a GND, FJG and all that we need to rebuild and protect ourselves from climate change. Our real wealth is in our labor, our technology, our infrastructure, our factories and educational institutions.

[@NUCLEARARMAMENT]

@CosmicDamian No need for LFTRs, a 1 MW continuous wave particle beam accelerating protons with a 1 GeV beam aimed at a U-238 neutron spallation target produces 50 neutrons per proton collision or 10 GeV (200 MeV per neutron produced) once those produced neutrons are absorbed by a surrounding thorium blanket. That 1 MW/1 GeV CW proton beam produces 10 MW of thermal energy, which provides enough output to power the 2.5 MW required to operate the accelerator and its ancillary components and at least 2.5 MW of net positive electricity production is produced using thermocouples and steam turbines. The remaining 5 MW is lost as waste heat that could be recycled to heat up water for desalinization of saltwater or to breakdown CO2 and H2O from saltwater to create synthetic kerosene. It would produce 5.5 million kWh per kg of thorium-232 or uranium-235/uranium-238/plutonium-239 placed in the blanket of this energy amplification device. The levelized cost of energy produced by this device would be $27.65 dollars per kWh over 30 years, costing $10 million per unit, $1 million a year in maintenance costs over 30 years and that includes the price of everything including depreciation and decommissioning and disposal. It would produce 5.5 MWh per hour at 100% full-duty cycle (that means 24/7/365.25 operation) for 30 years straight, or 1,446,390 MWh(e) of net positive electricity production over 30 years, for a total capital expenditure of $10 million for a single unit and $30 million of operational expenditures over 30 years, or $40 million total in that timeframe.

[@Al-ix5um]

Even at these historically low rates, we spend $375 Billion/yr on interest. Roughly one third of that goes overseas, mostly to Japan and China. You want to increase that?

[@tomcraver9659]

MMT: don't worry about the cliff that is supposedly in the fog ahead, we've staggered in that direction for decades, and not once did we fall off an edge.

[@tims2501]

With End of petro dollar and we get to that cliff overnight.

[@digitraxanr]

Brilliant!

[@beaudavis3808]

I like to see her debate her ideas with Thomas Sowell.

[@pcraig1383]

He would get his ass kicked.

[@aaroncoret9581]

Would be interesting. But I think Ray Dallio would be the better choice.

[@naldebol]

I don't think it's much of a debate It's all facts She's not proposing something new She's explaining how things are ALREADY BEING DONE She's just saying why not do for the poor what is already being done for the rich

[@kevinyaucheekin1319]

@@pcraig1383 Nah even through he well past his prime, she so far gone off the deep end into her cloud cukoo land that to any reasonable and half sane observer of said debate if it should occur she be crushed. But seriously no more bail out for Wall street.

[@pcraig1383]

@@kevinyaucheekin1319 Kevin, you can't criticize something (MMT) you don't yet understand.

[@connormack4373]

The deficit is dependent on the USA having the most powerful military, what happens when we don’t?

[@tims2501]

Having most powerful military is dependent on nations needing dollars to buy oil which they acquire by buying US debt. End petro dollar and end US military supremacy.

[@johnsuder7671]

Thank you for exposing this Stephanie

[@user-ml2ng8ql1t]

Keep bringing back Stephanie! She is so smart and makes her points clearly

[@marilynwargo6288]

Good. Do more of this. People need to understand money and MMT! Economics is everyones’ business!

[@ajalikhanz]

I feel like there's a concerted effort to keep the public uneducated on Economics.

[@twoshedsjohnson8540]

@@ajalikhanz Yes, and The Rising is perpetuating this by having quack economists espousing MMT nonsense.

[@marilynwargo6288]

@Janet Baker Oh? It is operating now and is real. If You don’t understand it then your criticism is pointless.

[@marilynwargo6288]

@@twoshedsjohnson8540 You don’t realize that MMT is operational and for real. It is being used by the rich and powerful against us. It

[@twoshedsjohnson8540]

@@marilynwargo6288 And that's not going to change...MMT will always be used for the benefit of the well connected.

[@Armyjay]

This should be compulsory reading for all western Govt politicians, especially in the US, UK & EU.

[@dannywindham3295]

Absolutely mandatory

[@jesse6680]

Gotta love her strawman argument. I believe the actual argument against deficits is they slow and exacerbate growth. Which, when you look at GDP, you might notice is true. The reason most of us haven't felt the second tier effects, is well, because we haven't had the deeper slow down, when we actually face the economic reckoning of beginning to pay it down. Kelton is like the first person to try flying: pushing their plane off the cliff and saying they are flying, when in fact they are falling to the ground. People that buy-in on her tomfoolery, might also be interested in a bridge in Brooklyn I am willing to part with.

[@mikeaustin4138]

An excellent book is "Debt: the first 5000 years" by David Graeber (?) Puts debt into its historical context.

[@pfzht]

What people fail to realize is that public debt is notional and doesn't operate the same for currency users as it does for currency issuers. It's that simple.

[@julians7268]

This is a wonderful fairy tale.

[@Stefanitza27]

It’s just accounting facts. It’s WHO is doing the accounting that’s the problem

[@michaelmcmillian5129]

Obama's FED gave out $29 Trillion (according to the Levy Economics institute, some say more) during the Bailout of Wall Street from 2009-2012. Evidently when RICH PEOPLE hide money in their off-shore accounts, the money never enters the economy and does not create inflationary pressures (which only happens when labor or supplies are unable to keep up with demand.)

[@BoydJones]

So let's fight to prevent that. And fight the likes of Trump's $2 trillion tax cut which the super-rich similarly shifted offshore.

[@grantbeerling4396]

I get the impression the interviewers have read the book, judging by their questions......a rarity, well done The Hill!

[@marlaholt3697]

What is happening now is NOTHING like what happened in 2008 , get real

[@vivekbalachander7858]

Great segment. Kudos to Krystal and Sagar.

[@funkmonsterjones4753]

So the car can go 100 mph but we're choosing to go 50?

[@henrygustav7948]

pretty much and its been happening for decades.

[@McMarvin42]

Let's get Michael Saylor or Max Keiser or Robert Breedlove or Raoul Pal or Peter Schiff or any person who understands what hard money is to have a debate with Kelton.

[@luddity]

MMT only works until the US dollar loses its special status as world reserve currency, which could be happening soon.

[@robertjenkins6132]

How do you explain the deficit spending of many other countries including Japan, often with with *negative* inflation and interest rates?

[@austintrousdale2397]

I remember hearing from avid watchers of CNBC and Fox Business in 2011 or so that if we didn’t elect Mitt Romney, that would happen to the U.S. dollar. I realize that it hasn’t been quite a decade since, but can you cite evidence for your claim?

[@paramountofpuns6913]

Kelton is my favorite and I have been saving up to get her book

[@dannywindham3295]

That's fantastic good for you

[@dannywindham3295]

@@Jay...777 you are correct

[@willwright2099]

No talk of deficits when they pumped $6 trillion into Corporations for COVID relief. Magically deficit discussions reemerge! Now that it's time to help people. Funny how that works.

[@MrBenjaminCole]

I prefer money-financed fiscal programs, not borrowing.

[@screenarts]

All money is someone's debt.

[@logicae4096]

She is missing a few key points. That we can keep running a deficit as long as people are willing to fund us. In the 2000 debt crisis as well as the COVID crisis, there was an international response that expanded deficits around the world. When we come back to normal, which countries will have an unacceptable level of debt? I will argue that the US is approaching such unacceptable level as we are forecast to require more than $600b/year in interest payments in the next 4-5 years. All that comes out of our national budget. What is the level at which people (China) will continue to purchase our debt? And why do we want our adversaries to benefit? And don’t forget - by her own admission, somebody benefits from the debt. Well I don’t see the homeless situation getting better, I don’t see our water situation getting better, I don’t see poverty getting better, I don’t see ANYTHING getting better...so by most social, demographic definitions we should NOT be issuing more debt? She has a dangerous view which is debunked by a few large economies having gone bankrupt in the last 2 decades due to crushing debt and inability to pay it off. In any case as the US economy keeps growing that’s fine...the gravy train of growing economy, economic importance may cover up the stupidity of the US government. But the moment the US economy tanks and we are no longer the economic leader (dollar reserves, GDP size, strategic importance) - the world will punish us, possibly by going into default. Her point is to milk the gravy train for all its worth and let our children pay the consequences. Too bad the majority of the US believes in this theory. Running the US like a normal American household. It’s easy and ignorant until nobody wants to pay.

[@twoshedsjohnson8540]

Printing money is, basically by definition, inflation...you're inflating the money supply, which will result in rising prices over time as the velocity of money increases. Plus, the rich always have the first crack at the newly created debt, and benefit from their investments as they purchase them low, and as the money circulates through the economy over time those very same investments rise in value with inflation.

[@whwallfly3437]

Stony Brook "expert"; Is that possible?

[@stupideunuchs6513]

No.

[@monkeymuggs]

Masters in economics from University of Cambridge. Id say so.

[@twoshedsjohnson8540]

Well, I at least now know where NOT to send my kid when he goes to college.

[@soarhighyandow9109]

If this is the case, why do we have to pay taxes at all?

[@screenarts]

When the money is created by keystroke the intrest charged is not created. U S Government Bonds are then printed and sold to the NY banks who sell them globally. China owns tons of our debt. Your tax pays that intrest.

[@mike4962]

MMT is not modern at all. It's been tried many times even back to the Roman empire. Every time it results in a currency crisis. The USD is down substantially this year already. With this MMT nonsense it is bound to continue.

[@twoshedsjohnson8540]

Exactly...these people think they've stumbled onto some new incredible theory that will change how we view Economics forever. In reality, it's nothing more than money printing and the devaluation of the currency.

[@turkrane12]

A penny saved is a penny earned.

[@pfzht]

Applies to households, businesses and states but not the issuing source of currency.

[@softshell259]

everyone needs a stimulus horse pony!

[@kathima6459]

Also keep in mind that our Congressional representatives were the ones who created the tax system that allows this alleged "corporate greed" and then perpetuates it by not changing that system. Don't hate the player, hate the game.

[@2FINE4YOUBABYGIRL]

Stephanie Kelton is an inspiration, makes me wanna pursue my economics degree.

[@mike4962]

Don't bother if you come out thinking like her

[@jimmyheagerty563]

As an MMT student professor Kelton is my favorite guest y’all have on the show!

[@stupideunuchs6513]

Ya'll cowards.

[@dannywindham3295]

It would serve us well if more people learned modern monetary Theory and became familiar with Stephanie Kelton. Learn mmt please

[@LoveNeverFails81818]

Our “money” IS debt. It is created only through debt creation. It’s double-entry bookkeeping.

[@debbiedogs1]

No, that would be bank loans, not the money issued by the federal government.

[@LoveNeverFails81818]

@@debbiedogs1 if you believe in some “independence of the fed” is real, or if, like me, you believe the system is a self-serving revolving door, then it’s semantics only!!!

[@bargdaffy1535]

One of the Most Influential Books ever! Changed my thinking about all kinds of Ledgers and their two sides, a lot of arguments by Pundits and Talking Heads leave out the other side.

[@adamgonzalez7450]

But but but I thought running deficits had no negatives? Or so I was told by the Hill a few weeks ago.

[@a100independent6]

Only if those deficits caused by corporate welfare

[@ky6632]

The Hill is really becoming useless. I know people don't like Jimmy Dore's style but he continues to break more stories.

[@TCt83067695]

Useless in what way?

[@jkupfe]

Please have Stephanie Kelton on regularly.

[@TRayTV]

Thank you for the question about how much is too much. I feel like we could go a little more in depth on that but it seems the short answer is it depends on the supply side of the supply and demand equation.

[@lindegirl3334]

Why does practically everyone who comes on this show usually is plugging their book they wrote...🇺🇸

[@Panda_J1]

They trying to get rich

[@Dbro2050]

I think it’s a bit of a dishonest take on deficits. The traditional ideas about deficits assumes that all other things are normal. So taking mass deficits when the rest of the world is also doing it is not the same situation.

[@Dbro2050]

@@Jay...777 they are never responsible about it because when the good times but they don’t want to seen as responsible for ‘taking things away’. They try to keep the govt gravy train going.

[@AmandaMarieBrinkley]

💙☮️🌍🌏🌎☮️💙 VERY Important Point Indeed. This one is always close to my heart and top of mind. It astonishes me people don’t understand this on a visceral level. People have been so tricked/brainwashed into believing people must suffer to protect the US from the deficit. It makes no sense. (All the points Marianne made on the new Krystal Kyle and Friends really hit home for me, especially when referring to the assignations and what that did to the country and the mindsets of forward thinking individuals with plans to continue pushing for change). When you compile the topics discussed in this video with the possibility of emerging technologies like hyper advanced 3D printers already long in operation within the long standing secret space force, there is a lot more for politicians to consider. Importantly, politicians tend to be great fund raisers, come from money, and possibly convincing public speakers. That does not make them the most educated and the most moral. It seems that the highly educated should be sharing round tables with politicians to iron out that massive amount of issues that will affect day to day lives and matters of business as new tech is rolled out. Passing simple morality tests seems like an odd notion, but how do we ensure morality in decision making by our leaders? Sometimes I seriously wonder why big government doesn’t hire Esther Hicks to help answer leading edge of thought questions facing our leaders. We are on the precipice of full disclosure or a dystopian partial disclosure full of lies and half truths. It’s time we identify the true elders of our society and keep in mind keeping everyone in power up to date and very well educated in all matters they have a say so in. Youth is eager to push for change. Dinosaurs in politics and at the pentagon seem ill equipped to handle everything they have been kept in the dark about as big gov has been excessive compartmentalized for entirely too long. Politicians obviously have a handle on how politics and legislation work but fail when it comes to morality and they’re beholden to their big money donors. Those in the military obviously have a culture that takes precedence over ethical decision making entirely too often. The best and brightest educators from the highest levels could shake up the change that is needed to improve the lives of all Americans now. What procedures can be put in place and regularly considered to enact meaningful change to improve all of our lives on an ongoing basis? 😍🛸💙☮️🌏🌎🌍☮️💙🛸🥰 I’m full of questions and gems of ideas in the rough! Please take awhile (pardon the amateurishness and verbosity) to check out the latest videos on my KZbin channel and SUBSCRIBE. Be sure to subscribe and hit the bell 🔔 for ALL notifications to this KZbin R’s channel first!!! 😊🤩😉😇🥳 Just click the icon with my face on it, to your eyes 👀 get there. Come & think with me! It’s time we all want world peace. So want it already, please! I have quite a few ideas on how YOU THE READER OF THIS COMMENT CAN HELP! Hint: Make a simple request via video, send it to your senators. 🥰😇🤓🧐😊Love your videos! 👍 Add a thumbs up to this video and comment please! 👍 Thank YOU So Much! 🥰😊🥰 👍

[@jameswalker1797]

Think of this in terms of a Triforce of Monetary Sovereignty: Congress, The Treasury, and Federal Reserve have a special relationship that is known as the Currency Issuer. Congress writes the instructions to the matter of law, when it becomes law, the Federal Reserve as a master scorekeeper keystrokes the currency into existence and Treasury coordinates disbursements for users of currency, which include states, local government, business and firms, and households. Federal taxation is the main way Congress authorizes removal of currency. It is the counterbalance to ensure that there is room for new currency to spend and use in which the biophysical resources available are the limiting factor in the natural world. MMT shows how, as the currency issuer, the federal gov't does not collect tax money; it deletes it as its spending functions are only what Congress authorizes. Likewise, currency user gov't (states, local gov't) do collect tax money for their own purposes authorized by their cameral bodies.

[@seeking70]

Like the parachutist said as he fell with a failed chute: "So far, so good."

[@Nunyabusiness40]

She must be invested in crypto. Infinitely printing money doesn’t work in a globalized economy with many other currencies, especially when that policy is openly adopted.

[@jase_allen]

Sounds like you didn't bother to actually watch the video. She wasn't calling for infinitely printing money, and talked about the limits to the monetary theory she's advocating for.

[@pcraig1383]

You can't criticize what you don't understand.

[@Nunyabusiness40]

@@pcraig1383Sadly I understand it deeper than you. But it’s okay because only bernie bros and the people who don’t look into or question anything about her book or MMT actually eat this shit up. The French economist she bites off of got chewed up and spit out in a economic forum years ago and admitted he didn’t use the right data when studying MMT. Stephanie doesn’t go on interviews where she is actually pushed on her ideas. There’s a reason.

[@ryawilliams3835]

Politicians give money to their buddies and we pay for it with our tax dollars. The fact that we are in debt means they are giving out more money than we can pay.

[@kensheeler7914]

Congress loves to spend our money like a drunken sailor on liberty

[@ralphmunn1685]

@ken Sheeler, what part of "spend our money" do you find inappropriate? Is it the part where our government (the "WE" in We The People) helps people to have heat for the winter, food for their children and appropriate health care when necessary, or is it the part where it (WE) gives huge amounts to the already wealthy? And if you're thinking of the "money" we give to other countries, that comes in two flavors - the help we give communities to build clinics and secure clean water, etc. (which stabilizes volatile parts of the world and earns the US gratitude to a significant degree, and which the Chinese government is doing almost everywhere we aren't,) and "military aid," which money goes DIRECTLY to US weapons manufacturers to build and give weapons systems to our oversees "friends." Just curious...

[@jacobrobinson5948]

Her Book is Amazing 📖

[@monkeymuggs]

This woman is a national treasure

[@michelegosse7116]

Try Ellen Brown

[@benburnside5049]

I honestly don't understand the topic enough to follow the conversation, so I'm just gonna have to buy the book and learn.

[@chenyitube]

So the 1.3 Trillion dollar student loan is a surplus for universities, and that's a good thing. No need to bail out the poor students??

[@stepstar6187]

Ridiculous arguments! Printing money isn’t a good plan

[@MadjidKhan]

Petrodollar is the reason why you dont end up as Greece.

[@BoydJones]

Isn’t Greece’s problem corruption and tax cheating?

[@MadjidKhan]

@@BoydJones Things that does not exist on USA you mean? If Another country would print so much money as USA does, the inflation would be 2000% in that country. It is the Petrodollar that allows FED to print so much money without nåt consequence.

[@BoydJones]

@@MadjidKhan OK. So let's print more then and bring the US economy to full employment.

[@JeffreyGoddin]

I was worried I would disagree with her, but she addressed all my concerns by the end. Can we get her on the Fed?

[@mersidarannyyin6696]

These Congress think we don't know they are full of bullsh. We've been hating Congress. The people just can't do anything about it yet.....

[@cheekychews]

Humbug! The GFC wiped out millions of home owners ... debt is NOT benign and can’t be put off forever ... the buck must stop, somewhere, sometime ...

[@fortusvictus8297]

Entire Empires have been picked apart by lesser powers when they failed to pay back their debt. A massive military is the only hedge against that, but when you can' even pay your soldiers it all comes crashing down and the Empire is drawn and quartered by everyone it owed money to.

[@clarestucki5151]

Kelton's definition and understanding of the effects of gov't deficits are seriously defective. The true effects of gov't deficits are wholly dependent upon the means by which those deficits are financed. If they are financed by borrowing from investors, domestic or foreign, the effects are benign, or even non-existent. If they are financed by the creation of new money out of thin air by the Fed Res bank, then they simply amount to a tax on people's savings, which reflects itself as price inflation..

[@christiansennesvik4756]

But she doesn't mention the devaluation of the US dollar - weaker USD makes for higher prices for average Americans on many items. But hey, I'm getting my laptop cheaper since NOK vs USD is on a 2 year low now...

[@BoydJones]

The US can simply manufacture more goods within its own borders.

[@christiansennesvik4756]

@@BoydJones good luck then :)

[@oldmikie]

nice catch

[@twoshedsjohnson8540]

What's not talked about with MMT is that it enables the belief that everyone can get what they want just handed to them, rather than earn it through hard work and determination. This really gained steam after the bank bailouts of 2008-09. The precedent was set that no one should have to experience failure/hardship in business, or now, in life.

[@mikeaustin4138]

Deficits and the Debt matter, but not in the ways that most people think. Pumping money into the economy increases the creation of "things", which requires resources. Those resources come from the Earth: wood, petrochemicals, minerals, agricultural products, etc. Right now, we are witnessing the law of diminishing returns on those resources. The "low hanging fruit" has all been plucked and the remaining large deposits are either controlled by unstable/unfriendly regimes (Afghanistan, Bolivia, Venezuela, several countries in Africa) or by countries that have competing imperial ambitions (Russia, China). That is why the US has a military presence of some sort in roughly 75% of the world's countries. (It's certainly not to promote democracy!) Virtually every single conflict in the world right now is over resources.

[@johnriley8761]

Much much more of her please

[@batman1776]

>If deficits are too big it causes inflation. How is this any different than mainstream economic theory?

[@BoydJones]

It’s not really. Just another way to look at it.

[@brucedavis6244]

Riseing I love your news it the best

[@landlubber42069]

Wouldn’t MMT increase the wealth divide to an even greater extent? Deflation and low growth paired with huge asset price inflation which crushes working poor even more.

[@NickCampbellCampbeln]

There's no inflation*! * - Except in food, housing, healthcare...