Daily Archives: January 22, 2023

These Are the Times that Try Men’s Souls – Stephanie Kelton

Stephanie Kelton has published the article on Substack These Are the Times that Try Men’s Souls.

[B]ecause there is no difference between bond- and money-financed government deficits, there is no reason for the government to sell bonds at all. We can stop today. No further increases in the debt and no unnecessary and counterproductive debt ceiling drama.

Here I go again disputing the words of my allies in the MMT universe. Here was my comment on Stephanie Kelton’s post.

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When the government sells bond in return for money, the government takes spendable money out of the system and replaces it with money that cannot be spent into the economy. So there is a difference between money and bonds. As long as MMT people like yourself try to sell the fiction that there is no difference between money and bonds, you will fail to gain credibility. You do know why the government sold bonds in WW II, don’t you?
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Can my readers supply the answer to that last question I left for Stephanie Kelton? Surely, she knows the answer you are about to give.

When my friends tell fibs to make a point, I do not appreciate it.