This is what they mean by 'printing' more money. It matters not if its physical or electronic, the effect is the same. If the Gov't continues to create more money then we lose faith in the unit. Again, think of the apple. 8/
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Replying to @MjolnirTech @learning20201 and
Last week the apple was 4" tall. Yesterday the Gov't decides to cut the inch in half and it became 8" tall. Today the cut it again and its now 12" tall. How tall will it be next week? At some point you may realize that you will have more money if you don't sell the apple. 9/
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Replying to @MjolnirTech @learning20201 and
This is what happened in Germany in the 30s. If trust in the stability of the dollar declines the economy suffers and people will start using other measures to value the product. So, maybe we don't know how many inches tall the apple will be next week but we... 10/
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Replying to @MjolnirTech @learning20201 and
do know that it will still be about 10cm tall. So, if I'm going to sell my apple, i trust the metric system more than the imperial one. This is how you destabilize a currency and supplant it with another one. 11/
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Replying to @MjolnirTech @learning20201 and
Of course, some fluctuations are inevitable but maintaining trust is critical. Since the economy is debt based like described, the economy and GDP must grow and that means more money must flow in. The comparative rate of money generation to GDP is the inflation. 12/
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Replying to @MjolnirTech @learning20201 and
Since the entire thing is arbitrary and based on faith the Gov't can do whatever it wants with the dollar so long as we believe it is stable. So, they increase amount of money incrementally and tell us it is growth and the value is stable and strong. 13/
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Replying to @MjolnirTech @learning20201 and
Over time our accounts increase and maybe our checks go up and we believe that we have more buying power. Then costs go up and it cycles. There is a lag at each step and this is where the faith hides the value changes. 14/
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Replying to @MjolnirTech @learning20201 and
So literally all of this is addressed by the lecture you didn't watch before you sent 14 tweets about why it was wrong.
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Replying to @doctorow @MjolnirTech and
You might still disagree with MMT after learning something about it, but that disagreement will address its actual arguments, not things you think might be its arguments.
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Replying to @doctorow @MjolnirTech and
Asking strangers to pay attention to your extended views on a complex subject when you start by saying you haven't familiarized yourself with that subject first because it's too complex is not a fruitful strategy.
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