One or two of the 85%?

Allegedly 85% of politicians are not familiar with how banks create money … For the general population it’s 80%.  Any questions?

Like, what does it mean for a government to have “… no money left!” as Michael Gove puts it, quoting the last outgoing Labour chancellor?  When Andrew Gwynne objects: “But that was a joke…” does that mean he is in the know on the money?

Do we not have fiat money issued by the government? So why would a money issuer run out of money in a low inflation scenario?  Because it has to borrow from itself, like governments seem to do? Interesting …

And then there is the 97%. That’s the percentage of money not issued by the government, not counted by economists and  apparently incapable of causing inflation? Interesting …

That the previously given reasons for austerity have gone missing  is also interesting. Needs must, I suppose?

PS  The screenshot is of Michael Gove  and Andrew Gwynne in the post-debate spin-room on BBC newsnight 19 11 2019 – watch it here

And read this:

In his book Weeks sets out to debunk six austerity “myths”:

1) “We must live within our means”

2) “Our government must live within its means”

3) “We and our government must tighten our belts”

4) “We and our government must stay out of debt”

5) “The way for governments to stay out of debt is to reduce expenditures, not to raise taxes”

6) “There is no alternative to austerity”

“When Ha-Joon Chang exhorted: “We need an economic literacy campaign so people understand the language used by the ruling class”, he was probably thinking of books like John Weeks’ “The Debt Delusion” that has just been published by Polity. As the subtitle “Living Within Our Means and Other Fallacies” explains, this work sets out among other things to expose the Swabian hauswife myth popularised in 2008 by Germany’s chancellor, Angela Merkel, with regard to state budgets: “One should have simply asked the Swabian housewife. She would have cited the wise maxim: one cannot permanently live beyond one’s means.”

read all of Mathew D. Rose’s book review here

update 24/4/20  Or check out Steve Keen putting the case for Direct Financing on   Nugget’s News

“Economists Refuse To Believe Banks, Debt & Money Are Important – Professor Steve Keen Today welcome back Prof Steve Keen to discuss the failing financial system. Global central banks are once again having to restart QE & bail everyone out as the debt based monetary system collapses yet again. Nothing has been fixed since the 2008 global financial crisis. So what have governments, central banks & retail banks got wrong? Why are they ignoring the impending debt crisis & unfunded liabilities? What does the future has in store for developed economies who continue to paper over these cracks with larger rounds of stimulus, bail outs & money printing? Mainstream economists continue to ignore the roll of banks, debt & money in the economy & they wonder why they can’t predict yet another financial crisis. #Economics #Money #Debt

Steve Keen:

Richard Vague:…

Michael Hudson:…

Nugget’s News