Episode 246 – Dr Steven Hail explains currency and deficits

The Morrison government has announced a massive spending program and many Australians may be asking if we can afford it.

This podcast will answer that question.

We begin the podcast with an interview with Dr Steven Hail. Steven is a modern monetary theory (MMT) economist and in the interview we discuss:

  • Why the budget of our federal government (as an issuer of currency) should not be compared to a household or business budget.
  • The merits of a Universal Basic Income.
  • A Wealth Tax.
  • The US dollar.
  • The Euro.
  • Brexit.

Following are links to a podcast and two articles recommended by Steven.

Podcast with Alan Kohler and Professor William Mitchell.

TAXES FOR REVENUE ARE OBSOLETE by Beardsley Ruml (Chairman of the Federal Reserve Bank of New York).

Maastricht and All That by Wynne Godley.


After the interview with Steven, we then proceeded with the usual discussion.

How many?

2 weeks ago there was 500 cases. Last week it quadrupled to 2000. Today it is … 4557.

See Guardian Link

Scomo put democracy into Hibernation.

Suspends parliament for 5 months. Apparently not an essential service. Apparently there is no technological solution. But …  the suspension motion passed, albeit followed by another motion that would allow the parliament to meet differently than under the normal standing orders – for example, online.

Creates the new National COVID-19 Coordination Commission (NCCC), chaired by former Fortescue Metals chief Nev Power, will coordinate advice to the government on “actions to anticipate and mitigate the economic and social effects of the global coronavirus pandemic”. What Power would know about managing a pandemic is unclear, but what is obvious is that the handpicked mining executive will be unconstrained by the codes and traditions of the public service, and will owe his loyalty to the PM alone. From The Monthly.

Morrison on Sunday Night

Asked landlords and banks to help. He requested bespoke arrangements. He will need to legislate.

Still waiting for a lock down

Pros and Cons.

Mixed Messages

Two schools of thought.

Experts disagree about a lockdown.

Who knows which is right but … crazy inconsistencies destroy my confidence.

Scomo installs a Junta

OK, no quite a Junta which is defined as a military or political group that rules a country after taking power by force.

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