Wait for it. Wait for it. Wait for it. NOTHING. Absolutely nothing.
Ok. There is a small difference. Under MMT, the Treasury creates money by issuing IOUs. Under QE, the Central Bank (RBA) creates money by issuing IOUs.
In both cases however, it is about creating money out of thin air.
So when RBA Governor Phillip Lowe:
described the concept of modern monetary theory as “trickery in financing.”
He is not arguing about printing money. He is arguing about who controls the printing press.
So further says Lowe:
The best way for the government to finance its commitments is to go to the market rather than the central bank, he said.
Governor Lowe is engaging in his own trickery, rhetorical style. The Government does not go to the central bank because governments like to pretend the private sector is buying government bonds when in fact all that is happening is that the government is selling government bonds to the banks who in turn sell them to the central bank.
This is not a debate about printing money. This is a debate about who controls the printing press and we have an arrogant technocracy who think they know better.
Where does Governor Lowe think that the RBA got the resources, the over $150 billion of money, to buy assets? He created the money out of thin air.
printed more money in June than in the first two centuries after its founding. Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979
Trickery in financing. Yeah.
This is pretend economic activity. This is not real. There is no production created from this, except for the extra electricity generate (renewable of course) to run the RBA computers to account for all the extra money they “printed”.