Tyrone Braithwaite

50+, mountain biker - film maker - eater

[Tyrone Braithwaite @MTBrone]

@rougues63 @implausibleblog He hasn't lasted though - which we all knew was going to happen as his painful centrist plan has fallen apart, and wasted so much time whilst destroying the Labour brand.

He's robbed people of hope.

So it doesn't matter what he won.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj There is no printing 'extra' £££.

G'ment decides what it wants to buy - an act of parliament authorises it - through that mechanism - spending is happening without taxation or borrowing as part of the operation.

Read the authority on the technicals.

https://t.co/74gd80S6hF

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj You have to rewire your understanding of government finances.

It's normal to run deficits (6/7) surpluses in the last 50 years.

Bonds don't finance spending.

Issuing currency happens from a zero balance not a savings account.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj No not at all.

We can do that as well but it is not functionality attached to government spending.

Collect all the tax in the world it doesn't affect the government capacity to spend.

Taxation removes money, controls inflation and takes power front he wealthy.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj Also - politically government's mostly are terrified of taxing the wealthy.

Just hold that thought.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj Literally who is shredding money?

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj What's the knock on for liz Truss now? (Apart from her demise.l

BoE bought up some bonds it carried on.

if anything on that blame the BoE being out of synch with their own government and LDIs.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj That doesn't happen.

Like the Truss scenario - it soon recovered.

It will go to a certain level and be bought up. Fiat currencies in big economies don't just go down one way.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj The pound has to go somewhere for it to be sold. Someone has to hold it.

People buy low knowing that it will always likely recover.

This is the nature of fiat.

(Bonds are always over-subscribed because it's a guaranteed savings return back by government.)

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj Look, there is no letting MMT loose. MMT is a description of the current system.

It's literally how it works now.

What is false is the government pretending is financially constrained. All government spending is made by order of parliament via the CF at the BoE.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj It will not cost 5 x more.

Someone has to hold the currency and it has little to do with government spending .

Gold standard thinking confusing your perspective.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj The government doesn't need to raise interest rates. Interest rates are not a tool for supply shocks.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj Someone always has to hold GBP. Every seller as a buyer. It doesn't disappear!

You're using all the wrong lenses for viewing this.

Fiat goes up and down. That's how it works.

We buy produce in sterling not euros. Etc.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj I don't know what you mean by print 'extra' money. That doesn't mean anything. Government issues money to spend on projects/resources required for the state.

But if you're so sure this happens why not trade currency?

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj No it doesn't. It doesn't work like that.

Just printing or issuing money that does nothing doesn't add to inflation.

It depends where that money goes. And what resources are available.

Government spends every single day, it's part of the normal process.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj Yeah so what?

The national debt is a political choice by design. (It's not a mechanical necessity to pay for things.)

It funds nothing. And is literally not a problem to you or I.

[Tyrone Braithwaite @MTBrone]

@meadwaj But why does that stop roads being built and paid for?

You've just moved off the article and into somewhere else.

[Tyrone Braithwaite @MTBrone]

@khaylock @meadwaj We literally always run the 'printing' (albeit electronically) press every time the government spends.

What do you mean by rolling over debt?

[Tyrone Braithwaite @MTBrone]

@meadwaj Road projects are being axed according to that article and not because of the value of the pound but because of pay-for constraints.