Monday, January 22, 2018

The Revolutionary Implications of Fiat Money

Modern Monetary Theory - MMT

I don't usually provide links to other articles, but this is not to be missed.  While a bit long and confusing, it essentially points out that our notion of the 'household' as a model for how government spending works is completely ass-backwards.  From this model, it follows that our notion of 'paying' for education or single payer or social security or any other social program through tax revenues is absolutely backwards too.  No household can print money, but the U.S. government, through the private, bank-run Federal Reserve does.  Unless you have a printing press in your basement churning out counterfeit notes, the similarity is non-existent.  The 1971 move to go off the gold standard - 47 years ago - ended that.  Fiscal and monetary policy are actually separate.  Fiat money undermines the whole notion of government debt and 'austerity.'  Private banks also create credit out of 'thin air' onto a computer screen, so there is no reason why a State Bank cannot do the same thing for citizens.

Marxists can use MMT to undermine austerity-minded politicians and the world-wide banking industry...

The Purpose of Taxes Is Not What You Think...

By Jim Kavanagh, Counter-Punch 

And I found it on the internet!
Red Frog
January 22, 2017 

P.S. - Bloomberg finally caught up with MMT: 

No comments: