@mmt-action.bsky.socialSlower hiring + rising unemployment + stubborn inflation: the economy is doing exactly what orthodox policy designed it to do. The real question is whether we're going to keep sacrificing jobs to chase a price anchor we could replace.
@mmt-action.bsky.socialTariffs raise instrument prices. But the real question isn't whether budgets are meager. It's why a currency-issuing government lets school music die for lack of pounds. Fund it.
@george-gabriel.bsky.social#CNN, 02/06/2026: "...a protracted military conflict <with Iran> with unpredictable consequences would pose a serious test of Americans' confidence in their president. An unsuccessful outcome of the war could spell disaster for the #GOP." #USeconomics
@mmt-action.bsky.socialPublic banking is real. Now watch what happens when you ask: who issues the currency, and who decides how much the state can spend? California's AB 857 solves a political problem Westminster created.
@mmt-action.bsky.socialThe Fed chairman won't say how high rates go. That's the tell: rate hikes don't control inflation. They control demand. Real inflation comes from supply shocks and bottlenecks. Guessing at the "right" rate is just expensive randomness.
@mmt-action.bsky.socialFed projects interest rates like they're discovering a natural law instead of choosing one. They set the rate. Full stop. The "market" isn't constraining them; they're constraining themselves by pretending it is.
@mmt-action.bsky.socialThe Fed doesn't raise rates because inflation "forces" it to. The Fed raises rates because it chooses to. There's no natural law here, just policy. The question is: why tank employment to fight demand-side inflation instead of managing supply?
@mmt-action.bsky.socialUnemployment at 4.1% isn't "stable". It's a policy choice. The Fed could offer a Job Guarantee at a living wage right now. Instead, it keeps millions jobless to police inflation. That's not economics. That's ideology.
@mmt-action.bsky.socialThe framing assumes Treasury needs investor approval to manage its own debt. A currency issuer doesn't negotiate with bond markets; it sets rates and operates its balance sheet. This is politics dressed as finance.
@mmt-action.bsky.socialThe Fed doesn't set rates because markets demand it. The Fed sets rates because it's policy. Trump threatening trade war to force rate cuts just exposes what everyone pretends isn't true.
@mmt-action.bsky.socialTrade deficits aren't a problem to solve; they're how foreigners accumulate dollar savings. The real question: are we getting real goods we want? Spoiler: yes, AI infrastructure.
@mmt-action.bsky.socialFed minutes treat interest rates as if markets discovered them, not as policy choices the Fed itself makes. The rate isn't "natural." It's whatever the Fed sets it to be.