83-86 Rome 89-90 https://t.co/er4edIs4J4 90-93 @BSNetherlands 95-00 @VIS_Austria GRE Quant 170 Verb 170, Fmr Emerging Voice @iiea Exports are a cost, imports are a benefitlinkedin.com/in/simon-twist… Newtownpark Ave, Blackrock🇮🇪Joined September 2013
A result of two errors:
First, ignoring the REAL economy and focusing narrowly on “money” and finances.
Second, not understanding that analysis of trade MUST begin with “imports are a benefit and exports are a cost.”
BTW he’s by no means the only complete idiot in this regard.
For Europe to defend itself properly, it doesn't need joint EU debt issuance. Better alternative is to drop the Euro and revert to national currencies. Ensuing devaluations and debt write-downs will free up fiscal space, allowing each country to boost defense spending as needed.
This means, the government (of whom the BOE is a branch of) has no need to accept the bond yields set by the market. And therefore the £ Sterling bond market can never pose a threat to the UK government.
By which i mean, they have the power to set the whole yield curve if it so wished to (buy buying or selling bonds of different maturities). And its decision not to, is in itself a BOE decision to allow the yield curve to be influenced by other market participants.
There is SO MUCH context missing. My first point would be that the only way to buy government bonds from the government is with money PREVIOUSLY SPENT (and not taxes back) by the government. This is a fact and completely shifts the entire 'panic' borrowing narrative.
Don't you think it's time for the BoE to set risk free interest rates at zero across the full maturity range?
'Rising bond yields leave Reeves with no choice but to plan a ‘muddle-through’ budget | Gilts | The Guardian theguardian.com/business/2025/…
Widely disparaged as a recipe for inflation and irresponsible governments, monetary financing has, in fact, helped many countries cope with huge, unexpected expenditures, Katharina Pistor reminds us. bit.ly/4iO5Ccp
@MMTmacrotrader@Muhammad_Okoye Yes. But I like think of it the other way 'round.
Unemployment etc. is the evidence gov spending is insufficient to cover the need to pay taxes and desires to save.
It's about satisfying that core savings need agents prioritize/borrowing reduces.
@CurtMills This, of course, is the benefit of not depending on another country for your security. And why no country (even ukraine) should want their future to depend on a "security guarantee".
An ex leader of a major party in Wales. In the audience, two attendees who top the regional list for major Welsh parties. All discussing the economics in an independent Wales through an #MMT lens.
@tonywestonuk social policy in a democratic society is a political decision, MMT can assist greatly with the economic MEANS for attaining these socially and politically stipulated GOALS. You will find this in Lerner and Mosler for sure.
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