Simon Ripton @sdripton

Joined February 2010

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William Thomson @Williamgallus

4 weeks ago

4000-word article in @heraldscotland on #MMT in Scotland. It's great to see some unbiased reporting! NB a lot of people doing a lot of good work here.

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Simon Ripton @sdripton

4 weeks ago

@labourlewis @andy4makerfield Clive. I know you understand the basics of MMT. I know you know that currency issuing government has more fiscal headroom than we’re told. For Andy to deliver change he needs to get the economics right. So he must ditch Haldane and O’Neill. Neoliberal to their core.

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Simon Ripton @sdripton

4 weeks ago

@TorstenBell @TorstenBell: as good as Gov spending is, it’s not enough. Sectoral balances show the problem. The non-gov sector can’t accumulate financial assets without bigger gov deficits. Fiscal rules are a false constraint. Insufficient gov spending creates poverty and private debt

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Simon Ripton @sdripton

a month ago

@resfoundation Why? The state issues its own currency. It can always pay any obligation in the pound only it issues. A shorter working week, shorter working life, a state pension, universal basic services and job guarantee scheme might be the only way to live within planetary boundaries.

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Simon Ripton @sdripton

a month ago

@CityAM When the state pension is gone, the pensions industry will demand higher workplace contributions from employers. These short sighted business people don’t understand how the money system works. If they did, they’d be defending state pension.

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Simon Ripton @sdripton

2 months ago

@bigpicturepol @MMTUK_PRG Taxation gives currency value, and is a pillar of monetary sovereignty. Others include a free float. Fully sovereign currency issuers don’t need to defend currency. That’s gold standard thinking. Let the £ find its level and, build economic & institutional resilience.

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Simon Ripton @sdripton

2 months ago

@bigpicturepol @MMTUK_PRG Fiat money is backed by the institution of government setting the unit of account by imposing a tax liability. And imprisoning anyone who doesn’t pay. The institution of the state IS the money system.

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Simon Ripton @sdripton

2 months ago

@bigpicturepol @MMTUK_PRG Germany didn’t run out of Marks. It ran out of real resources…having trashed its economy’s productive capacity it couldn’t make stuff. Oh, and it owed money to foreign creditors in a foreign currency it couldn’t create. It was not monetarily sovereign.

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William Thomson @Williamgallus

2 months ago

"The takeaway from this week's newsletter must be that it is impossible to solve the private sector's cost-of-living crisis by reducing its ability to save." patreon.com/posts/newslett…

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Simon Ripton @sdripton

2 months ago

@FT Ask yourself, when the U.K. deficit spends, who receives the pounds it spends in to the economy?

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Simon Ripton @sdripton

2 months ago

@macrodosepod @meadwaj @jemfiori @claraemattei @chakrabortty @alameda We don’t need to imagine. Open a history book. Turn to the chapter entitled 1939-1945. We also know how to prevent it. Turn to the chapter entitled 1946-1975.

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Simon Ripton @sdripton

2 months ago

@LostCauseDave @RichardJMurphy There will be a crash. If you want to know why, read Minsky. TLDR. Too much private debt. Public deficits too small. As with ALL crashes. The central bank’s fiat spending will be what maintains stability. The state is always the back stop.

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Simon Ripton @sdripton

2 months ago

@LostCauseDave @RichardJMurphy 1. Money is a financial instrument. Defined as a liability of the state and convertibility 2. Gold is not money 3. Money is spent or lent into being by, or under licence from the state 4. The state can regulate markets out of existence. Proving they don’t need ‘bond investors’

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Simon Ripton @sdripton

2 months ago

@LostCauseDave @RichardJMurphy You’re missing the point. ‘Money you don’t have’?! Where do the settlement reserves come from? The government has ALL the money. The REAL question is who constrains profit seeking markets from destroying the planet by failing to price over consumption.

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Simon Ripton @sdripton

2 months ago

@RobertJenrick Why hire someone experienced in businesses, that operate as currency users in the micro economy, to run policy for a currency issuing government in the macro economy? If you don’t understand why this distinction is important, you’re not fit to hire a macro economist.

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Simon Ripton @sdripton

2 months ago

@LostCauseDave @RichardJMurphy Does it though? Really? Where do the settlement reserves that are used to purchase bonds come from?

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Simon Ripton @sdripton

4 months ago

@meadwaj @VerdantThinking State money creation to build and maintain domestic capacity is the strategic answer. As long as we’re trapped in the false ‘state must tax and / or borrow to spend’ narrative we’ll never build resilience.

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Simon Ripton @sdripton

4 months ago

@meadwaj @VerdantThinking 1. Your first ever report leads with a ‘scarce money’ narrative. Wasted opportunity. 2. Over reliance on imports in part caused by sell off/ run down of domestic / state capacity due to belief in scarce money. 3. Plenty of sellers willing to hold GBP, so just FX it

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Simon Ripton @sdripton

5 months ago

@HenricCont @MMTUK_PRG Private bank money creates both a deposit and liability. Effectively cancelling each other out over time. State created money creates deposits in the private sector that endure until taxed out of existence. If money creation adds new productive capacity it can create wealth.