Modern Monetary Theory (MMT) is getting significant media attention these days, after Rep. Alexandria Ocasio-Cortez said in an interview that it should “be a larger part of our conversation” when it comes to funding the “Green New Deal.” According to MMT, the government can spend what it needs without worrying about deficits.
As always a easy understanding article from Ellen Brown. Of course most American know nothings won’t get it as our lamestreet media does not inform the public nor does it want public banking here in Amerika which has worked well in North Dakota for a good part of a century. Public banking in all states could provide the communities of the state with funds to improve the quality of life in the communities without huge fees and all the monies going to projects not the banksters. If you have read Shock Doctrine: Disaster Capitalism by Naomi Klein you know all Ellen says is true.
As shown in this article, John Bolton’s recent comments on Venezuela have made it very clear that Washington is doomed to repeat its past mistakes in South America:
It’s always about profiteering for Corporate America.
Hi, Yes, jujuudahl__— I love the idea of the North Dakota bank ( a bank for the People) and I used that bank when I lived in Fargo for a couple of years. Wall St. Banks do not need to exist —PUBLIC BANKS are what all states need. : )
Yes, big banks killed it in Oregon 8 years ago but we need to try again. They have a huge group of lobbyist passing around lots of money.
In a sense, capitalism does regulate itself and its elements: it just mis-regulates them; it forces them to abjure value to gain profit.
That’s why people regard work as a sacrifice. We do not, by and large, go to work to resolve problems or create opportunity. We go to work to get money because individuals do not trust each other, and so we need money to avail ourselves of each other’s elementary cooperation (not that we can suddenly trust each other, let alone will others to trust us).
Sadly, there is no clear and positive correlation between profit and constructive action. In fact, a strong case can be made that the reverse is true.
We might also ask the degree to which a capitalist government can regulate a capitalist economy in a capitalist country. Clearly there is some extent to which it can; Glass Steagall did exist.
But it seems that ultimately that is very limited. As inequality rises, the grasp of money and profit on the decision-making process becomes stronger and more exclusive because the difference between being rich and bribed as opposed to honest and poor becomes greater.
It reminds me, metaphorically, of moving an upright grand piano. If it is not tilted at all, the balance seems quite easy. When it tilts just a bit, the weight is startling, but up to a certain point, one can push into it and right it. But the weight lurching sideways increases quickly as the angle increases. Past a certain point, the key act is to jerk one’s limbs out of the way.
This may all just be in an arc sailing towards the floor.
Although everything I have read from Ellen is spot on, most Murkins live in a delusional world by choice wherein they do not want facts getting in the way of good stories.
I hope Ms Brown is talking about Keynesian economics when she says MMT, because many people know Keynesian, and few agree as to how ‘MMT’ differs from it. Spending one’s way out of a downturn is grudgingly recognized as valid by even a die-hard like Milton Friedman.
Anyone trying to link this reasonable discourse about mild variations in emphasis, to a runaway hyper inflation such as we are seeing in Venezuela, is, well, just too too…hyper?
Ellen Brown writes another great article. The U.S. practiced “financial repression” after WWII, I think it forced banks to hold U.S. Treasury Bills which paid subpar interest rates. This was part of the strategy that decreased the enormous post-war U.S. government debt. That Chavez would mandate the uses of credit in Venezuela is a perfectly sensible idea. We have a super-abundance of savings in the U.S. that goes mostly into speculation and financial paper-shuffling. The household net worth has grown from $48 trillion in Jan. 2009 to $109 trillion in Dec. 2018, doubling in a nominal sense, about 91% increase adjusting for inflation. That “wealth” creation has not benefitted many Americans. Here is a run-down on the achievements of the Maduro administration: * Venezuela expanded its free health care coverage to more than 60 percent of the population.
- Earlier this year, the United Nations Program for Development placed Venezuela among the countries with the highest Human Development Index, surpassing most Latin American countries.
- Venezuela has built 3 million homes for the poor and working class, 1.6 million under Maduro, to house up to ten million people in a population of 30 million.
- Maduro’s administration has provided more than 4,800,000 computers, over 100 million technology textbooks to students across the country, and more than 20,000 schools have received new computer equipment.
- Venezuela ranks sixth in the world in terms of enrollment in primary education and has increased its coverage of secondary education to 73 percent of the population.
- There have also been gains in civil rights of historically oppressed sectors of Venezuelan society, like women, Afro-Indigenous people and the LGBTQ community. – from this source: https://popularresistance.org/us-led-coup-in-venezuela-the-plot-thickens/ — Among other things. Also Venezuela has a lengthy record of fair elections since Chavez. The only fault to lay against Maduro is his call for a Constituent Assembly to reverse the election of 2015 which the Chavista’s lost, 56% to 41%. They should have allowed the opposition to rule, it had won fairly and squarely in Dec. 2015. Instead they chose an irregular method of getting around the defeat.
Just like Smedley Butler said 90 years ago.
“That ‘wealth’ creation has not benefitted many Americans.” BL8
"We go to work to get money because individuals do not trust each other, and so we need money to avail ourselves of each other’s elementary cooperation (not that we can suddenly trust each other, let alone will others to trust us).
“Sadly, there is no clear and positive correlation between profit and constructive action.” bardamu
That’s heavy, bard. I think in terms of a particular paradigm, and you’re almost right to it! “Don’t trust” is getting worse. It’s approaching bellum omnium contra omnes. And yet “the system” (bootstrap meritocracy) promotes at the same time [doublethink] my-zealous-performance which the next wrung up will recognize and give me a raise. In this, modalities to emulate (according to René Girard) are always changing with trends. With gig computer “home businesses” (or trading online eg), too many got too close to perfect imitation. Hence, rivalry.
When reading Brown I always come to the question: Why don’t we peg the dollar to so many ounces of ground flax? The electronic figures, as BL8 notes [I think ISMW, and as you point out] aren’t to me either really worth a lot. The faster infrastructure decays, the less to me it seems dollars are worth. But then Hudson comes into the picture, and his words seem like they coorelate when-they-were-by-fuller-faith-and-trust-pegged-to-something (like gold) versus now when gold is leaving the country [pertinent to that old inflation-fearful assumption that the amount of currency in circulation must equal some present valued items in the economy, or represent the reasonable promise of future valued items to be built/added…to the overall economy]. I get lost reading that dude, but I keep try’n. https://michael-hudson.com/2019/02/venezuela-as-the-pivot-for-new-internationalism/
As Richard Barnet wrote IIRC, the spirit of a nation is linked to its security. And “security” must be linked to faith & trust.