This 1 hr 26' 42" video was published by UCL Institute for Innovation and Public Purpose on Jun 18, 2018: https://www.youtube.com/watch?v=6IBEoWSiTHc
Ron: This video is well worth watching. Stephanie Kelton rightly says that Governments have the monopoly power as regards issuing money into circulation in society. Although she doesn't say it, that is true whether or not a government exercises that monopoly directly or sub contracts it in some way to private banksters. The subterfuge of using so-called "independant banks" to create and issue money merely conceals the truth that governments have, and exercise, this power, even if they do it corruptly or negligently. Think about what that means Pilgrims!
It means that governments are responsible for issuing ALL of the sovereign money in circulation in any sovereign nation. It follows that governments CANNOT tax their constituent populations to avoid DEFECIT SPENDING because the deficit has, and must, have already occurred. Why? Because Governments HAVE to spend money into the economy before they can TAX any of it back out. Moreover, if a government was to tax back ALL of the money it has issued in order to avoid incurring ANY deficit, (the so-called national debt) there would be NO economy and the governed population would starve and/or cease to be governed.
Moreover, IF governments expect their constituents to use the money issued as the means for facilitating the exchange of goods and services within its jurisdiction, the government MUST spend (issue) much more money into the economy than it extracts via taxes. In fact the primary reason for taxation should be to ensure that government has not issued an excess of money into circulation resulting in too much money chasing too few goods and services. Why? because that creates price inflation (ie money devaluation) and an unbalanced economy. Taxation can also be used to prevent excessive wealth imbalances causing gross inequality between the rich and poor elements in society.
As is the case in so many areas of global society today, the dominant Talmudic conventional wisdom and rhetoric about government spending and taxation is BACKWARDS. Populations cannot sustain themselves let alone fund government operations and government spending via taxation, UNLESS the government first ISSUES enough money to enable the population to survive and have a surplus to return to the government. This means that the constant refrain by governments and commentators to the effect that governments cannot fund necessary infrastructure development and services provision because they lack the money to fund those activities, IS NONSENSE. All that is required are electronic book entries performed by key strokes on computers.
In this talk Stephanie Kelton does not discuss the criminal activities and mechanisms involved in unsupervised and unaudited private corporations having a free licence to issue money at their sole discretion. Nor does she address the issues surrounding the provision of money via loans at interest (usury) by those private corporations; or their having discretion to vary interest rates and to decide who gets money and who doesn't. She only addresses the threshold question of why sovereign governments MUST issue money and incur so-called budgetary deficits and 'national debt' as a consequence.