This is a great clarifying piece from the thought leaders of MMT responding to their critics. They make the point to differentiate between a generalized description of money mechanics vs. specific implementation like the U.S. model. As has pointed out in the past, they clearly understand how the U.S. system clearly works under today’s self selected fiscal and legal constraints, such as the TGA must be funded prior to spending, no Treasury overdraft at the Fed, and the Fed cannot buy bonds directly from the Treasury. Supporters of MMT often conflate the need for the Fed/CB to create new Reserves by spending or lending, with the Treasury creating new reserves by Gov spending, but which the authors do not. Anything here anybody would like to point out or discuss? Anything anybody would like to add?

The Self-Financing State: An Institutional Analysis of Government Expenditure, Revenue Collection and Debt Issuance Operations in the United Kingdom - Review and Critique Andrew Berkeley, Josh Ryan-Collins, Richard Tye, Asker Voldsgaard & Neil Wilson (05 Sep 2025) Journal of Economic Issues, 59:3, 852-880, DOI: 10.1080/00213624.2025.2533726. Link to this article: https://doi.org/10.1080/00213624.2025.2533726 The paper "The Self-Financing State: An institutional analysis of government expenditure, revenue collection and debt issuance operations in the United Kingdom" (2022) by Andrew Berkeley et al. provides a remarkably detailed mapping of the UK’s fiscal-monetary mechanics: “This article provides the first detailed institutional analysis of the UK government’s expenditure, revenue collection, and debt issuance processes. The paper is often cited by MMT supporters as the source or academic truth or ‘proof’ that Government spending is financed through new money creation, not tax revenue or bond sales: “We show that public expenditure is always financed through money creation rather than taxation or debt issuance.” However, if HM Treasury is not spending tax receipts or bond sales revenue, then the BoE by law would be forced to create new reserves and new fiat money when crediting the reserve accounts of banks of Government payees. This requires the Treasury to BORROW new reserves from teh BoE, which requires Balance Sheet expansion of both the Treasury and the BoE to create new reserves. However, the data shows for the last 18 years shows zero Treasury borrowing from the BoE, and 100% of Government spending has been paid for by the BoE crediting the reserve account of the bank of the Gov payee, and then debiting Treasury accounts of funds already on deposit via a BoE “Liability Swap”. If there is no borrowing from the BoE to complete Treasury spending, no BoE BS expansion to lend, no Treasury BS expansion to borrow from the BoE, then there is no new fiat money creation.

In a multi-topic interview, sprinkled with insight and neat phrases, historian Timothy Snyder and foreign correspondent Terry Moran debate Trump, Hungary’s election, Pope Leo and the Iran war. See - https://snyder.substack.com/p/thinking-live-with-journalist-terry It’s worth watching because of how they both ‘think big’ - meaning a big picture, deep perceptions and open minds. At one point Snyder says “It’s about thinking ahead, thinking positively and finding a new language”. Though Skool isn’t geo-politics, that attitude seems relevant.

Millions protesting Trump? Deeper flaw: Irremovable executive like 1780s monarchy. UK evolved. America didn't. VP can't/won't depose. Duopoly ballots. Going Live now : https://www.youtube.com/watch?v=IfJmlVWxLgQ&views 🔥

$580M bets 15 mins BEFORE his strike halt post? War profiteering exposed + energy-GDP truth bomb (10% cut = 10% crash). Neoclassicals obliterated. Early Access for the community : https://www.youtube.com/watch?v=zrBNfVn8r60&views See you in the live chat!