Cryptocurrency was designed exactly to prevent such creation of money from happening. (Like communism, it has so far failed in practice to behave like theory.)
Money is created two ways:
- In the form of cash
- In the form of credit
The US is fairly unique among former commonwealth countries in that it requires banks to hold a cash reserve equal to 1/10th credit issued. Other commonwealth countries have no such requirement. A consequence of this policy is that bank runs in the US can collapse a bank or that the government can refuse to perform a reserve transfer.
Anywho, without getting into the weeds: thr US government literally borrows money into existence, and prints cash to act as the reserve for the creditor. This means the US governnent is forever paying rent on money it indirectly created and requires in order to function.
MMT cuts out the creditor.
#DrunkEconomics
ETA:
Great primer on how money is created:
Addendum2:
The whole point of the current monetary policy is to force people to work and to slowly convert public property to a private playground for the rich (read: theivin bastards(
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I am NOT accusing you personally here. But you should know that the “financial element” and the “money changers” has been dog-whistle talk accusing “the Jews” for a couple of centuries now.
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Also not unreasonable to believe that the quotees were in fact making that reference.
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#MMT Dr Stephanie Kelton - “HOW DO WE PAY FOR IT” with the Public Purse https://youtu.be/6IBEoWSiTHc
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Got a whole podcast series on MMT here:
Fund us on Twitter @MMTpodcast
Find me on Twitter @christreilly
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*find us on Twitter I meant. I mean funding would be nice, but…
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At large scale at least. There are small communities in the world who get on OK with varying degrees of public ownership (see: Anabaptist communities).
Hutterites are particularly interesting since they are pretty close to no private ownership.
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Money, the grandest illusion of all.
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God I hate the NPR web site, let us track you for the rest of you life and show you adverts or visit our text only web site, with no content!
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There are modern ideas that take this into account
This is currently the basis for self governance in the Democratic Federation of Northern Syria
(Libertarian in this sense is the original left wing definition, not propertarianism)
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I don’t think thinking about it can make the problem worse and can’t see how it could, so I’ll pass.
It’s also unlikely to improve things, because the debt and the deficit are justifications for austerity, not reasons. The reasons boil down to weakening the government’s ability to act as a check on wealthy individuals and corporations while maintaining it as a useful tool. But that topic’s not anything novel in this forum.
I’m actually at kind of a loss in how to address your reply; sure the government could create money in that way, but given that it would go against its master’s interests it will remain merely a topic of curiousity until that problem is fixed. And I don’t see it being of much use against that.
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Ah ok. Then I completely misunderstood the intent of your original comment. My apologies.
Eh, given how often I scurry back into my hole after I repeatedly fail to explain myself properly, I’m probably the one who owes you an apology. And there you have it.
In the first instance, it’s descriptive, rather than prescriptive. In other words, we switched off the gold standard some 87 years ago and literally never updated the textbooks. MMT noticed. In conventional economics, there are fundamental assumptions about banks, money and debt in particular that have the status of myths. MMT noticed. It seems the hegemony of neo-classical economics created a kind of blindness to how the world actually works.
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