@AFreeLlama@BobMurphyEcon Those dollars all exist within the US banking system, which is operated & overseen by the Federal Reserve, FDIC, and OCC among other federal regulators. All transfers between banks ultimately clear at the Fed.
@ScottAdamsSays The national debt is a stock of outstanding Treasuries. It is the record of the net transfer of funds to the private sector from the federal government.
In other words, the national debt = the national savings.
Nothing to worry about and totally misunderstood by most.
@ryanmasonn8 @StevenHailAus What you just said contradicts itself. Somebody HAS to hold the savings created by investments. Basic double entry accounting. If they “invested their savings elsewhere,” that just transfers the savings balance to someone else. No change in aggregate
The media explains every movement in the markets and economy through the lens of monetarism. They are clueless as to any other factors (fiscal) that may affect the economic environment. And they don't even really understand monetary policy.
@cullenroche@BobMurphyEcon @RussellKBurger @MMTmacrotrader The $billion AUM fixed income arb HF guy, the Citadel/US Tsy/Vandy law guy, the Harvard law lady, the Columbia law lady, the accomplished WSJ journalist/author, all seem to be credible sources on the subject
@cullenroche@BobMurphyEcon @RussellKBurger @MMTmacrotrader The Ricks book is especially compelling. The guy was an M&A banker focused on Financials then took a buy side role at Citadel doing merger arb for bank deals. Worked at US Tsy post-GFC now is a finreg prof at Vanderbilt law school. Not exactly a “blogger”
@ryanmasonn8 I’ll engage as long as you stay civil. The banks don’t have to be “fully reserved,” in order for a deposit balance to ⬇️. In fact, reserve requirements are currently 0%. If bank overdrafts by $10 in reserve account that is functionally a loan from Fed.
@TaylorRevest If you haven’t yet, please have a listen of our episodes 11 and 12 (interview with Warren Mosler). He makes very compelling arguments similar to yours about the high societal cost of so many “compliance jobs” as he calls them