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Congratulations. Stick to the plan. I had exactly the same philosophy at your age. It is amazing how things start to snowball in a positive way after you reach a certain point. Needs patience though.

This. MMT is basically communism by banking. It ignores the fact that people will not work (put energy into a task) unless they can get back something of value. If currency is printed at will under MMT, people will quickly work out that energy in from them =/= energy out they get. They will stop working. At which point communism starts to use guns on the workers. Always happens. Imagine two countries, the UK and Australia. UK adopts MMT and starts to print pounds non stop to pay for everything. Australia doesn't. UK wants to buy copper from Australian mines to make lights work. Australian mine owner says 'wotcha got to pay with'. UK says - here, a billion quid. Australian miner say.... er, nah, it's worth nothing mate. Chinesey dude over there is paying me in gold. Bye! And the lights go out in the UK

A friend of mine sells caravans and motorhomes. Most of his stock is new with some secondhand. Nothing is cheap. His two types of customers are those just retiring with a pension draw down and what he calls young lads (probably about 30) who work in the trades and turn up with the wife and kids and with most of the money in cash in a Tesco's carrier bag. I doubt the t look like they could afford a caravan either.

You won't even get a room here for £400, let alone London.

Yeah that doesn't ring true Also there is literally nowhere anywhere near London you can rent a room for 400. Most places even double that won't get you a room Also being a teacher for a maximum 6 years won't see her take home pay at more than 2500 a month Seems a load of made up nonsense But good to link back to in a few years when she is complaining that her rent and service charges have doubled and the flat has lost 100k in value

Doesn't square up to me. It sounds like a bit of an advert. So the purchase price was £530000 and her share is £132,500, so she is being charged £497 a month on £397500? Idk much about shared ownership but the rent is 2.75% on the portion you don't own. So mortgage cost = £606 Shared ownership = £910 Service charge = £288 Almost certainly these flats have district heating = £100-200 Seems absolutely unaffordable as a teacher living on their own.

Store of value. MMT steals money from the economy of money by diluting it, but it doesn't expand the pot, it merely shuffles the wealth around. Otherwise everyone would be printing themselves rich!

For me, money is the tool that allows exchange of value to occur. What is value in a human system? Worthwhile human effort and time that produces something that's needed by one of a million markets. When the human input loses value, the perception of value is warped over time. Combine that with credit and it amounts to a lot of valueless shit. Credit is the bastardisation of money. The con man's money. Precisely because there's no human value in it's production. Like Bitcoin. Buy a couple of computers and press go. No human effort. It's exactly why AI art is bollocks. There's no time and effort in it. It has no value. The logical endpoint of that is computers trying to swap something it created in 0.2 seconds for something else some other computer created in 0.2 seconds, except there would be no need because it could do it itself. The value is entirely eradicated. Value is held both in utility and in human achievement. Hence gold's intrinsic value. It takes massive amounts of time and effort to produce it while at the same time being indestructible, uncopyable and useful. We have lost the value of and within ourselves. We're more valuable than we appear to collectively believe.

Adding value can be subjective. How many of the millions of additions to GB in the last 20 years add needed goods and services to our economy that improve our output and living experience? At the minute it feels like the UK establishment is printing currency and humans.

Where MMT falls over is simple ,you would be relying on governments to be responsible/prudent etc,where in reality it would be a race to see who could print the fastest Creating money via debt is what i would call the safety valve ,which discourages the above occurring ,,ask Zimbabwe etc I think China has the nearest we will ever come to seeing MMT where by the major retail banks are government owned and the currency is not floated RMB ,money is still created via debt the same as in the west but that debt is almost all held within the country ,then they mainly use these banks to finance their own industries/infrastructure ,whilst the smaller retail/private banks finance private/personal lending, how do they mange to control it ,,they still hang bankers that go rouge

Because this way we have to pay rent on all the money in existence to the banks.

The same applies to everyone, not just immigrants - not many have a lifetime average wage of £50k as the average is closer to £30k. It's just another part of the government's basic mismanagement of the country, both their failure to secure the borders, and their failure to create a productive economy.

Give it a few more years of splashing it around and £3 billion will be a couple of loaves of bread

"why are we borrowing money in a currency we print ourselves?" For me the answer is because Bankers control the money supply. If the money supply was controlled by farmers, coal miners or hookers the financial system would look very different.

I'll have a crack at this question At it's core it is just the accounting system of who owns what value* to whom. It only works because of legal tender laws; government demanding taxes in their own money and when you do work you get given money to account for the effort you put in for the person / organisation who gave you the cash. *in terms of energy and resources. The dictionary deffinition is "a current medium of exchange in the form of coins and banknotes; coins and banknotes" which for me is a description of what the medium of exchange is, not the explantion of what the medium of exchange is.

‘I bought my three-bedroom shared ownership home aged 25 with only a £13,250 deposit’ Teacher Farhana Mallick bought a shared ownership home in the Royal Docks, at the centre of a £2bn regeneration zone. https://www.standard.co.uk/homesandproperty/buying-mortgages/i-bought-my-threebedroom-shared-ownership-home-aged-25-with-only-a-ps13-250-deposit-b1155069.html Farhana Mallick was only 25 years old when she found herself exhausted by renting in London. “I decided I was done losing my money on rent,” Mallick, now 27, says. “I wanted to invest in a property and have a home I could make my own.” Previously she’d lived at home with her parents in east London, where she was raised, or rented a tiny room in a shared house for £400 a month. As a history teacher at a school in Barking and Dagenham, she was one of the key workers increasingly priced out of living in the city where she worked. But scraping together a deposit large enough to buy somewhere near her family and workplace was tough. “In London, the house prices are now very high — if I hadn’t bought with shared ownership, I would still be renting or living with my parents,” she says. “It gives you a lifeline, especially for someone in their 20s or 30s.” Mallick took out a mortgage on a 25 per cent share of a three-bedroom apartment in the Royal Albert Wharf development in Newham, east London. The property was on the market for £530,000, so a 25 per cent share equated to £132,500. That required a deposit of £13,250 — far below the three-figure deposits buying in London can now require. “Shared ownership really appealed to me because it meant I required a much smaller deposit than if I was buying privately,” says Mallick. Her monthly costs are £1,391 for the three-bedroom flat. Of that, £606 goes on her mortgage and £497 on rent for the part she doesn’t own, plus a £288 service charge. Although it’s much more than she was paying on rent for a room, Mallick is very happy with the level of freedom and space her home gives her.

Your having a laugh Dave reckons we got loads of money

I would not be to sure about that ,second hand cars were very cheap for the best part of a decade until the coof hit The lease market is dead now ,but it`s that market that fed into the second hand market ,it was the sheer volume that lowered prices ,there will be a correction but, my money is on far lower volumes will put a floor under the market above what we use to see in the second hand market I hope i`m wrong i`m going to need a new car sooner rather than later and it wont be "new"

5% was just a random number I picked out the air, its more the concept of just creating the money outright without credit.

2% worked for a long time,5%+ now is whats causing the problem.We dont produce enough for that (mainly because we stopped producing energy).Iv got some huge equations on it of course,its the basis of macro strategy.Another huge problem now is the multipliers are doing the damage.For instance the printed money is all going to the none producing instead of the productive.BOE and economists think the invisible hand of the economy will respond with extra production,but its cannot because we dont producue the inputs ourselves,and the EMs wont accept being fleeced 5%+ a year anymore.

I suppose what I'm getting at is, how should Jared Bernstein have answered the journalist's question?

I've asked in the past the question "what is money" and never had a reply. It has several functions which is maybe why no one has tried to answer the question I posed. The issue with MMT is that it ignores one of the functions of money, which is that money is a mechanism to ration resources. MMT supposes that resources are unlimited and giving people more money will allow them to consume the resources they want/need without giving any thought on how to provide or produce those resources.

The wikipedia page on Modern Monetary Theory is fairly expansive https://en.wikipedia.org/wiki/Modern_monetary_theory As a quick definition, this paragraph in the section "Interaction between government and the banking sector" is pretty good: "A sovereign government typically has an operating account with the country's central bank. From this account, the government can spend and also receive taxes and other inflows.[33] Each commercial bank also has an account with the central bank, by means of which it manages its reserves (that is, money for clearing and settling interbank transactions).[48] When a government spends money, its central bank debits its Treasury's operating account and credits the reserve accounts of the commercial banks. The commercial bank of the final recipient will then credit up this recipient's deposit account by issuing bank money. This spending increases the total reserve deposits in the commercial bank sector. Taxation works in reverse: taxpayers have their bank deposit accounts debited, along with their bank's reserve account being debited to pay the government; thus, deposits in the commercial banking sector fall" That wiki page will be tough going to anyone who isn't familiar with all of central, investment, commercial and retail banking - and to be honest who is?!

Happy to debate that in the appropriate thread

You are going to fit in well here. Nice work.