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Old 02-24-2019, 06:44 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,489
Chartalism and Monetary circuit theory

Keynesian economics is the preferred system because it gives the most power to the State. Regulatory capture ensures that everybody with power can buy whatever regulations are necessary for them to succeed. The little guy is just a tax-donkey for the State AND an endless wallet for the oligarchs.
The current system pumps money into the economy through the bond market. It flows very well into the upper loop of finance. Since the State has quite a bit of control on the finance industry, the finance industry makes sure that money flows to the State.
The lower loop is getting increasingly impoverished. The calls for universal basic income and modern monetary theory are a response to our inability to earn a living wage.

UBI and MMT are an attempt to mitigate the effects of lifelong inflationary policies of the upper loop. Naturally MMT and UBI are soundly derided by people close the the monetary spigot. They claim that it will increase the debt ENORMOUSLY. Actually, it would decrease the debt as long as the Treasury did NOT create money for speculators. They claim that w would have terrible price inflation. The upper loop has had terrible price inflation and, nobody is complaining about that.
There are claims that UBI and MMT are just a facet of socialism. Socialism always seem to put incompetent people in charge.

There are alternatives to Keynesian money creation.
Our financial system is NOT prepared to cope with automation. Those who already have money are NOT willing to see changes that would diminish their advantage . The CBs are deathly afraid that there is no solution other than continued money pumping.
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