Steve and his guest, Scottish political economist William Thomson, use the fight over Scotland’s independence to dissect how class power hides inside “neutral” economic rules.

Will, founder of SCOTONOMICS, talks about his journey from neoclassical training to a heterodox, political-economy perspective grounded in MMT, ecological economics, and class analysis.

He recently wrote a paper (with friend-of-the-podcast Dirk Ehnts) showing how the Scottish government’s plan to copy the EU’s Stability and Growth Pact and delay its own currency would lock an “independent” Scotland into permanent austerity and dependence on markets and foreign owners.

Will explains that more foreign direct investment, supply-side reforms, and 3% deficit caps aren’t “responsible” policy – they are mechanisms to protect external and domestic elites at the expense of workers and communities.

Steve and Will stress that MMT is just a lens without an explicit socialist or working-class political economy. The same monetary tools can be used for empire, war, and repression. They argue for an independence project built on monetary sovereignty, full employment, ecological limits, and economic resilience... not on appeasing markets and Brussels.

William Thompson is a Scottish political economist and founder of SCOTONOMICS. He worked for almost a decade in the financial services sector in London. He has an MSc in the Green Economy and MEcon in the Economics of Sustainability. Based in Dunblane, Will writes regular blog posts and articles on economics in various publications including The National newspaper in Scotland and the Scottish Left Review. Support SCOTONOMICS: patreon.com/Scotonomics.

@Williamgallus on X

https://scotonomics.org/

“We’re at an inflection point – a civilizational crisis. Western imperial dominance is ending, and its dying spasms are only accelerating the collapse.” Aaron Good

Aaron Good, author of American Exception: Empire and the Deep State, is back to talk with Steve about the crisis of the US-led imperial order and the manufactured “common sense” that keeps people trapped inside a rigged system.

Centuries of Western imperial dominance are unraveling, and the US responds with flailing, genocidal actions in Gaza and Ukraine. These aren't signs of strength; they're the death rattles of a corpse that doesn't know it's dead yet.

“Realizing you’re not voting your way out of it might be the most terrifying ‘aha moment’ of them all.” Steve Grumbine

At home the two major US parties are presented as alternatives, the ballot is a participation trophy in the “managed spectacle” of elections. Obama? Trump? Biden? Different brands, same oligarchy. Corporate media and algorithmic “alternative media” work together to keep people confused, divided, and clinging to the fantasy that if they just vote harder, donate more, and binge the right “left” YouTubers, they can reform a system designed to crush them. The empire’s to-do list (crush dissent, steal resources) remains the same.

What are we to do? Maybe we can't break the system yet, but we can stop being dupes. See the Matrix.

Aaron Good holds a doctorate in political science from Temple University. He is the author of American Exception: Empire and the Deep State. He is the host of American Exception podcast https://americanexception.com/podcast/

Follow Aaron’s work at americanexception.substack.com/

@Aaron_Good_ on X

Randy: “We’re supposed to believe the central bank manages inflation by using interest rates?"

Steve: “It’s ridiculous.”

L. Randall Wray, one of the original MMT economists, recently wrote a paper with Yeva Nersisyan entitled, No, the Fed is NOT Independent – It is a Creature of Congress. Steve invited Randy for a conversation about how the Federal Reserve is, and always has been, a "creature of Congress," and its supposed independence is a smokescreen that benefits the wealthy at the expense of the rest of us.

The Fed has a dual mandate of full employment and price stability, yet it consistently prioritizes the stability of Wall Street over the well-being of Main Street, bailing out banks while leaving workers to face the fallout of manufactured recessions.

Randy describes how raising interest rates – the Fed’s so-called tool – works to suppress wages by slowing the economy and killing job growth. Federal Reserve transcripts explicitly state that they fear “wage inflation” but see “profit inflation” as desirable.

Randy wants Congress to take control of the central bank. (Some of us don’t see Congress as independent either.) But whatever our belief in the role of the state and who it serves, the episode contains valuable information on central bank operations, how interest rate hikes discipline labor, the truth about “fighting” inflation, and the difference between monetary and fiscal policy. We need to understand the mechanics of power if we’re going to build the future we deserve.

L. Randall Wray is a Professor of Economics at the Levy Economics Institute of Bard College, and Emeritus Professor at University of Missouri-Kansas City. He is one of the developers of Modern Money Theory and his newest book on the topic is Understanding Modern Money Theory: Money and Credit in Capitalist Economies (Elgar, 2025).