A Government That Issues Its Own Currency Cannot Owe a Debt to Itself
Channel: PEGS Institute
Date: 2024-03-31

A short clip from a longer video: https://youtu.be/tvgKbSuI5kY
Or watch the full series to get the full perspective: https://www.youtube.com/playlist?list=PLMUzeMKhbl10X-XzH-6q4iU0Ysul7cC4c

Original description:
In any modern economy, there is an important distinction to be made between currency issuers and currency users. Currency issuers are governments that issue their own currency by decree of the state and currency users are everyone else in the economy that does not have the capacity to create or issue their own currency. Currency users include households, individuals and businesses. 

In this video we go into the details about the distinctions between currency issuing governments and currency using governments. We look into how this affects countries that use the Euro and also look at how pegging their currency to the US Dollar contributed to hyperinflation in Venezuela. 

Note: The video lists China alongside other nations that issue their own currency. China does issue the Renminbi, denominated in Yuan, but it should not be inferred that China operates with a floating exchange system. Chinese currency is pegged to the value of the US Dollar in a unique operation. https://www.tandfonline.com/doi/full/10.1080/10971475.2016.1159905

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Sources:
The Deficit Myth by Stephanie Kelton

Everything You Want to Know About Modern Monetary Theory by L Randall Wray | Bloomberg Markets and Finance - https://www.youtube.com/watch?v=7sd-ElKMbPI

Manhattan Project to prevent Hyper-Inflation by J.D. Alt - https://neweconomicperspectives.org/2020/03/manhattan-project-to-prevent-hyper-inflation.html

Thinking in a Modern Monetary Theory Way by Professor William Mitchell - https://www.youtube.com/watch?v=MLKrBsTQntA


Written by Andrew Johnson and Jackson Winter

Spoken by Andrew Johnson
Edited by Jackson Winter

Icons made by www.wishforge.games, Charlie, icon king1, Free Preloaders, Raj Dev, from www.freeicons.io
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All other graphics created by Jackson Winter

Music
Pixelated Autumn Leaves by Jeremy Blake
1940's Slow Dance (Sting) by Doug Maxwell, Media Right Productions