I am going to have to find a better reference for MMT as the discussions of MMT on Medium seem flawed and I expect the experts have better explanations.

In your discussions you are contradictory regarding inflation.

Another motivation behind the Congressional mandate was the idea that allowing the Fed to overdraw the TGA would somehow lead to runaway inflation. Examining the underlying operations reveals that this is also nonsensical.

or

Too many dollars chasing too few resources leads to price increases and inflation. Taxes are one method of removing dollars from the economy and thus cooling inflation.

Which is it. You could claim both are true but that disregards the interconnections of the money supply and the deficit. It is deficit spending the creates the too many dollars chasing too few resources.

You also disregard the fact that the more the Government borrows the higher the interest rates that home and car buyers will have too pay.

Right now we need the deficit spending, we need more deficit spending to avoid deflation, if we really do need to avoid deflation but that will not always be the case.

In the developed world there is no scarcity (no too few resources) so inflation is almost completely dependent on the supply of money. More money higher prices. Scarcity is almost completely a created thing, Diamonds for instance are no longer rare so many stones are destroyed to prevent flooding the market. There is so much gold in the world that most of it is just put into storage. Food, we let 25 percent of it rot and warehouses and silos are full to overflowing. Oil, there is a cartel that controls a third of the worlds production with quotas to limit production.

There are two things where scarcity is in the news and they are only scarce regionally not universally. Clean fresh water and housing. For a price we can make more of both but the demand for expensive water and housing is limited to those with more money and with more money in the money supply the water and housing supply would increase.

If we give money to the poor landlords will raise rents and build more apartments, sellers charge what the market can bear.

You have to remember that today that government spending is almost completely offset by the removal of money from the money supply. There is very little “printing of money.” Taxes and bond issues cover almost all government spending. The only “printing of money” is what is permanently on the Fed’s Balance sheet. The Fed’s balance sheet is big enough that they can control the money supply and thus inflation. Hey, they just agreed to pump $1.5 trillion into the money supply to prevent illiquidity.

the Fed to overdraw the TGA

This is wrong. It is the Treasury that accesses the TGA (Treasury General Account) not the Fed.

The only thing modern about MMT is the idea that the general public might be informed about the workings of Monetary and Fiscal policy. It is even mistitled. It is as much about Fiscal policy as it is about Monetary policy and your story mostly addressed the Fiscal side.

The national obsession over deficits is an understandable but misguided carryover from our personal experience with debt

No, our national obsession over deficits is understandable because of the huge amount of waste, fraud and self dealing in Federal Spending.

It is like in your discussion about the government buying sheep, you talk about the sheep like they would be an asset on a government ledger but in the real world the government would give the sheep away (to a campaign contributor) or kill them and let the meat rot and there would be nothing to show for the debt. Very little government spending actually creates long lasting assets. Almost all the spending even the spending to alleviate poverty flows up to the pocket books of the already very rich. Rent assistance and SNAP all goes to Landlords and business like Walmart and ADM.

It makes you wonder why the Plutocratic Oligarchic Elites don’t jump on the MMT band wagon as more government spending means more money that they can rake in.

Think on that for a while, the conclusions are evil.

TEK