DTM: Warren Mosler eta Stephanie Kelton

Warren Mosler eta petrolioaren prezioa

What If OPEC Stopped Pricing Oil In Dollars?¹

Warren Mosler discussing what if OPEC stopped pricing oil in dollars. The answer is that it basically does not matter at all. The relative price of oil (as priced by other goods and services) would not change, and therefore the price of oil to holders of dollars would not change. And, our imports and exports wouldn’t change either.

What would have an effect is if countries wanted to stop accumulating dollars and saving in dollar denominated assets. This would have some effects on our ability to import, and on financial asset prices. However, fewer imports would mean we would stop losing dollars to foreign bank accounts, so our government could have a smaller budget deficit. This is meaningless to the federal government, but could ease pressure on state and local governments.

Stephanie Kelton eta zor federala

Stephanie Kelton‏ @StephanieKelton²

The federal debt in 1939 reached $48B³. Cartoonists ridiculed the idea that this was OK.

2017 eka. 12

Stephanie Kelton‏ @StephanieKelton eka. 12

Replying to @StephanieKelton

By 1940, the debt surpassed $50B.

Stephanie Kelton‏ @StephanieKelton eka. 12

Then came WWII, and the debt more than quadrupled. The cartoonists had a field day.

Stephanie Kelton‏ @StephanieKelton eka. 12

Here’s the current picture. Somehow, all the bad stuff that was supposed to happen just didn’t. Don’t let the cartoons scare you.

Stephanie Kelton‏ @StephanieKelton eka. 12

The national debt is nothing more than the outstanding quantity one kind of financial asset, provided by the US government.

Warren B. Mosler‏ @wbmosler eka. 12

The national debt is the $US spent by gov that have not yet been used to pay taxes and constitute the $net financial assets of the economy.

Stephanie Kelton‏ @StephanieKelton eka. 12

Is it also what I said? I don’t like that language, probably because I hear “today’s debt = future taxes” and it burns my ears.

Warren B. Mosler‏ @wbmosler eka. 12

Just saying that your ‘one kind of financial asset’ is in fact just a tax credit, and an outstanding one at that… 😉

Dakienak badaki, ez dakienak baleki!