Dylan Lawrence Moore

Open with insults and close with recommending reading. I will make reading this source my priority before aught else.

Nima Mahjour and I interviewed Warren Mosler again specifically to talk about how the US Government makes money and how Congress, the US Treasury, the Federal Reserve, and "primary bond dealers" interact to make this happen. Also, the Federal Reserve isn't a private entity. At all. In the least little bit. Warren relates his experience of owning a bank and being a member of the Federal Reserve (a requirement to own a bank). Members get 6% on their "stock", but all the rest of the Federal Reserve's profit goes straight to the US Treasury. STEPS: 1. Congress tells the Treasury to spend a certain amount of money on <whatever>. 2. The US Treasury, which doesn't have the money, begins a bond auction which is only available to primary dealers. (The bonds are created out the nothing.) In order to be a primary dealer, you are required to purchase a certain amount of market share in the treasury auctions. 3. The primary dealers sometimes don't have the reserves handy to purchase their market share of the bonds, so the Federal Reserve does a buy-back agreement with the primary dealers. In this agreement, the Federal Reserve exchanges reserves with the primary dealers' bonds (the reserves are created out of nothing), with the agreement that the dealers will buy back those bonds in the near-future (like, next day). 4. The primary dealers use the reserves they got from the Federal Reserve to buy the bonds from the Treasury. 5. The Treasury can then spend its reserves on <whatever>. The steps are clunky and anachronistic (Warren explains why in the video), but the point is: in the end the Treasury ends up with the reserves created by the Federal Reserve that it needs for its deficit spending. "Primary dealers" have been created as bureaucratic middlemen because Congress has decided that the Treasury can't simply have its own overdraft account with the Fed (probably mostly due to economic illiteracy and the banking lobby which makes bazillions off of trading treasury bonds), but they don't add anything to the sum effect of the interaction. Important point: AT NO POINT are tax dollars used for deficit spending. Federal taxes do not fund federal spending. #LearnMMT

Your pics aren't working. Net savings is what's left over after you cancel out the borrowing of the private sector, minus whatever money has been sent to the foreign sector. Private sector money has to be paid back, where it cancels itself out. Government deficit spending does not, as the government creates the money out of nothing and does not need it back in order to spend. Sorry, the only nonsense there is you not addressing what I wrote.

I agree. That's why I'm posting this stuff here. It's true on all levels that banks are money extension arms of the government. The Fed is a government institution. Yea it has some "private characteristics", but it exists by statute and is able to operate within the parameters given to it by Congress. "Private" banks require government license to do what they do and to be members of the Fed. So all players can create money through such expansion... with government permission. It's correct that S=I is bullshit. MMTers don't claim that S=I. A budget deficit or a current account surplus are necessary for net private saving, not all saving. And we've never said national income and GDP are equal, so... strawman.

What's your plan of action for fighting back, then?

Have you thought about escaping to another country and starting over? Preferably 3rd world where you could simply bribe your way into legal residency?

A take on dealing with sophists that I'm guessing you haven't heard before. What a sophists two primary weapons are, how they use them, and how to deal with them effectively.

Can someone tell me why it's important that the USD is the world's reserve currency? So what if oil gets traded in yuan? What's important is what a country saves in, not what they trade in. Video also mentions that yuan will be convertible for gold. Again, can anyone find me a source for this? I haven't been able to find one.

Fight with people and let them know that the interaction can be reasonable any time that they allow it, and the only reason you're fighting is because of self-defense. They keep starting it. Stop starting it and we can have a discussion.

Luckily, Starbucks coffee is burnt due to corporate policy (it's the only way to make the coffee flavor consistent), so I never go there anyway. The coffee sucks. Nothing to boycott!

Act like they're the ones being the assholes. People who cannot reason will generally side with whoever is alpha. Identify your main opponents in the room and assume the moral high ground when you speak. If you spend your time backpedaling and answer every little question people throw at you, they just assume you don't know what you're talking about, otherwise your behavior would be different.

Anyone got an actual source that China is backing its currency with gold? Everyone keeps talking about it and I can't find one.

Taxation is what gives the US dollar value.

In the same way I forgo the use of my money when I stick it into a savings account. I have to put it into my checking account before I can write a check or swipe a debit card. Unless they turn around and buy back treasuries. Remember, they were holding treasuries in the first place because they weren't using the money. If the Fed turns around and gives them reserves a little early because the Fed offers them a little higher interest rate, does that mean they're going to turn around and spend it everywhere?

I'm not entirely sure what "other things being equal" means, but I think you mean if the underwriting requirements and regulations don't change. Well, they do. Other things aren't equal. Underwriting standards vary wildly and they act as the gatekeeper for people getting credit.