Neil, thanks.
Nice try. But, Huge gaps of relevant logic.
Even paying agents can't make payments when the account balance they are paying from is ZERO ($0).
But it ain't the Fed that is hog-tied with no money in the TGA.,
It's Treasury.
They are simply not allowed to issue a payment order against a Zero ($) 0 balance.
You can check that…
"They are simply not allowed to issue a payment order against a Zero ($) 0 balance."
Then that restriction either doesn't exist in law (there is no such restriction in bank accounting) or has been repealed by the budget setting process. Hence implied repeal.
I gave you how the law can be read so the payment order applies in all cases. The Fed has no legal power to refuse that payment.
There is no such thing as 'no money'. Money is a promise, not a bag of coins. The Fed can just make the relevant accounting entries in its books.
Confusory. Hyperbole. and false claims for "functional-equivalence" try to fill the information void where zero facts actually exist to support a rather vacuous statement..
Like this gem.
" There is no such thing as 'no money'. Money is a promise, not a bag of coins. The Fed can just make the relevant accounting entries in its books."
Gawd.
Let's be real. A zero or negative account balance in the TGA means that no balance can be advanced to payment. Period.
Get Warren to get one of his friends AT TREASURY to say otherwise .....on the "make the payment" Order, or from the Fed that it CAN make the payment with a negative TGA balance...... because NEITHER has ever said so, and both have often denied it.
Didn't Eric Tymoigne and Wray correct this myth ?(2013)
And besides, how long can you ignore BOTH the Constitutional prohibition against zero-funds Appropriations, as well as the language I provided - from EVERY Appropriation Bill that passes.
"funds in the Treasury Account (TGA) NOT PREVIOUSLY APPROPRIATED."
Bureau of Fiscal Service - TREASURY FINANCIAL MANUAL(TFM)
Chapter 1500
Description Of Accounts Relating To Financial Operations
" Fiscal Service and OMB classify transactions within fund groups by categorically assigning numeric or alphanumeric account/symbols (or combinations thereof). Fiscal Service assigns account symbols to entities after considering the government’s relationship to the accounts, the source of the receipts, and the availability of the funds for expenditure.""
Did you miss that part, Neil ?
The progress towards actual payment - REQUIRES PRIOR CONSIDERATION by Treasury on the availability of funds (money) for expenditure.
Memes is what you got with MMT, not truth.
So, just like I said, as you quoted -
"They are simply not allowed to issue a payment order against a Zero ($) 0 balance."
So, Neil please take your time and validate with experience or facts to add any credibility to your statement abut 'no money'..
Know why?
Because all of the account balances at TGA are denominated in the currency unit of the sovereign, making them 'monetary' things; or money in the parlance of the people.
Neil, thanks.
Nice try. But, Huge gaps of relevant logic.
Even paying agents can't make payments when the account balance they are paying from is ZERO ($0).
But it ain't the Fed that is hog-tied with no money in the TGA.,
It's Treasury.
They are simply not allowed to issue a payment order against a Zero ($) 0 balance.
You can check that with Treasury.
Got it?
All that Fed-Treasury hyperbole is just that. Naked MMT mythology.
In case you haven't noticed the "Global Finance emergency" news lately.
Thanks.
"They are simply not allowed to issue a payment order against a Zero ($) 0 balance."
Then that restriction either doesn't exist in law (there is no such restriction in bank accounting) or has been repealed by the budget setting process. Hence implied repeal.
I gave you how the law can be read so the payment order applies in all cases. The Fed has no legal power to refuse that payment.
There is no such thing as 'no money'. Money is a promise, not a bag of coins. The Fed can just make the relevant accounting entries in its books.
Thanks, Neil
For pointing out the substance of MMT's "Theory".
Confusory. Hyperbole. and false claims for "functional-equivalence" try to fill the information void where zero facts actually exist to support a rather vacuous statement..
Like this gem.
" There is no such thing as 'no money'. Money is a promise, not a bag of coins. The Fed can just make the relevant accounting entries in its books."
Gawd.
Let's be real. A zero or negative account balance in the TGA means that no balance can be advanced to payment. Period.
Get Warren to get one of his friends AT TREASURY to say otherwise .....on the "make the payment" Order, or from the Fed that it CAN make the payment with a negative TGA balance...... because NEITHER has ever said so, and both have often denied it.
Didn't Eric Tymoigne and Wray correct this myth ?(2013)
And besides, how long can you ignore BOTH the Constitutional prohibition against zero-funds Appropriations, as well as the language I provided - from EVERY Appropriation Bill that passes.
"funds in the Treasury Account (TGA) NOT PREVIOUSLY APPROPRIATED."
Bureau of Fiscal Service - TREASURY FINANCIAL MANUAL(TFM)
Chapter 1500
Description Of Accounts Relating To Financial Operations
" Fiscal Service and OMB classify transactions within fund groups by categorically assigning numeric or alphanumeric account/symbols (or combinations thereof). Fiscal Service assigns account symbols to entities after considering the government’s relationship to the accounts, the source of the receipts, and the availability of the funds for expenditure.""
Did you miss that part, Neil ?
The progress towards actual payment - REQUIRES PRIOR CONSIDERATION by Treasury on the availability of funds (money) for expenditure.
Memes is what you got with MMT, not truth.
So, just like I said, as you quoted -
"They are simply not allowed to issue a payment order against a Zero ($) 0 balance."
So, Neil please take your time and validate with experience or facts to add any credibility to your statement abut 'no money'..
Know why?
Because all of the account balances at TGA are denominated in the currency unit of the sovereign, making them 'monetary' things; or money in the parlance of the people.
Thanks.
The Money Apprentice