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First, I admit to being confused. As you know, Pelosi and Democrats reached a 2-year budget deal in July.
Fortune: Budget Deal Avoids U.S. Government Shutdown Before 2020 Election
"The agreement is on a broad outline for $1.37 trillion in agency spending next year and slightly more in fiscal 2021." It is, like all budget deals, a compromise between the various factions with opposite ideas of what constitutes fiscal responsibility. I trust Nancy Pelosi to make the "best compromise" possible given that she does not control all the strings.
From the Fortune article:
"Pelosi and Schumer said the deal "will enhance our national security and invest in middle class priorities that advance the health, financial security and well-being of the American people." Top congressional GOP leaders issued more restrained statements stressing that the deal is a flawed but achievable outcome of a government in which Pelosi wields considerable power."
On the other hand a more extreme view comes from fiscal hawks.
"This agreement is a total abdication of fiscal responsibility by Congress and the president," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a Washington advocacy group. "It may end up being the worst budget agreement in our nation's history, proposed at a time when our fiscal conditions are already precarious."
So I don't know what Pelosi has said or done recently on "austerity pledges" recently that would prompt the MMT letter to her. The budget is what it is. It speaks for her. Compromise is necessary to get anything done in Washington D.C., particularly budgets.
I'll comment more on your other points on monetary versus fiscal policies once I have digested them a bit more. I'm slow...