Post by Senexx on Jul 13, 2016 6:01:58 GMT
Found this hiding in my emails
Plenty there to read, essentially a gold bug version of agreement with MMT. It is not 100% correct but it is close enough.
Dear Friend of GATA and Gold:
Bloomberg News tonight published a report, excerpted below, headlined "Ignored for Years, a Radical Economic Theory is Gaining Converts." It's called Modern Monetary Theory, but there's nothing radical about it; to the contrary, it's a tautology. That is, governments not only create money but can create as much as they want, restrained only by the prospect of currency debasement and the market and political reaction to it. Governments can't "run out of money" any more than the college basketball tournament basketball games about to begin in the United States can run out of points.
That is why, 70 years ago, the president of the Federal Reserve Bank of New York, Beardsley Ruml, noted in a magazine article that in a fiat money system like the one to which the United States was transitioning, a system getting away from any convertibility to gold, taxes were no longer needed to raise revenue for the national government:
www.constitution.org/tax/us-ic/cmt/ruml_obsolete.pdf
Today taxes are imposed by a national government not to raise revenue but to create demand for the government's currency, to redistribute wealth, and to reward or penalize certain economic behavior. In his magazine article Ruml noted the latter two purposes but not the first, using taxes to create demand for a government's currency.
In any case critics of fiat currency are wrong to charge that it has no intrinsic value, that fiat currency operates only on confidence. In fact, fiat currencies are the ransom people pay their governments through taxes to be allowed to stay out of jail. That is, currencies are the primary mechanisms by which governments control their populations.
This explains why governments are always waging war on gold, the once and possibly future world reserve currency, as gold is potentially an independent currency above all government. This also explains why governments are so desperately manipulating the gold market to conceal the debasement of their currencies.
Bloomberg says tonight that Modern Monetary Theory is only 20 years old. Insofar as MMT recognizes that government can issue non-commodity money, ancient China more or less implemented MMT a thousand years ago, there were episodes of it during the Roman empire, and the classical economist Adam Smith acknowledged it in 1776 in his famous treatise "The Wealth of Nations."
READ MORE: A 'radical economic theory' is gaining converts, except it's not radical at all
Bloomberg News tonight published a report, excerpted below, headlined "Ignored for Years, a Radical Economic Theory is Gaining Converts." It's called Modern Monetary Theory, but there's nothing radical about it; to the contrary, it's a tautology. That is, governments not only create money but can create as much as they want, restrained only by the prospect of currency debasement and the market and political reaction to it. Governments can't "run out of money" any more than the college basketball tournament basketball games about to begin in the United States can run out of points.
That is why, 70 years ago, the president of the Federal Reserve Bank of New York, Beardsley Ruml, noted in a magazine article that in a fiat money system like the one to which the United States was transitioning, a system getting away from any convertibility to gold, taxes were no longer needed to raise revenue for the national government:
www.constitution.org/tax/us-ic/cmt/ruml_obsolete.pdf
Today taxes are imposed by a national government not to raise revenue but to create demand for the government's currency, to redistribute wealth, and to reward or penalize certain economic behavior. In his magazine article Ruml noted the latter two purposes but not the first, using taxes to create demand for a government's currency.
In any case critics of fiat currency are wrong to charge that it has no intrinsic value, that fiat currency operates only on confidence. In fact, fiat currencies are the ransom people pay their governments through taxes to be allowed to stay out of jail. That is, currencies are the primary mechanisms by which governments control their populations.
This explains why governments are always waging war on gold, the once and possibly future world reserve currency, as gold is potentially an independent currency above all government. This also explains why governments are so desperately manipulating the gold market to conceal the debasement of their currencies.
Bloomberg says tonight that Modern Monetary Theory is only 20 years old. Insofar as MMT recognizes that government can issue non-commodity money, ancient China more or less implemented MMT a thousand years ago, there were episodes of it during the Roman empire, and the classical economist Adam Smith acknowledged it in 1776 in his famous treatise "The Wealth of Nations."
READ MORE: A 'radical economic theory' is gaining converts, except it's not radical at all
Plenty there to read, essentially a gold bug version of agreement with MMT. It is not 100% correct but it is close enough.
