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> Again: the government is completely free to control any assets it wants to control (as long as they are denominated in local currency). The constraints would
by madhadron 6y ago
> Again: the government is completely free to control any assets it wants to control (as long as they are denominated in local currency). The constraints would be 'politics and inflation'.
Yes. This is what a financialized economy does, and is why the British were so focused on creating a financialized economy in their colonies.
> I would say 'this is just Socialism'
I think where you're confused is that you're thinking of MMT as a policy prescription for how the economy should be managed (socialism!). It's not. It's a description of how fiat currency works in practice without the fig-leaf of gold reserves or the like. Trying to look at it as some kind of socialist propaganda is particularly weird because this theory is much more relevant to describing capitalism than to communism.
- jariel 6y ago"fiat currency works in practice without the fig-leaf of gold reserves or the like" The practices employed by Central Banks are not fig leaves - those rules are how we define money and are maybe the most important rules in any country. Those rules give credibility to the system, without which, it would collapse very quickly. When we move remove the central bank and politicize money, then, the economy is socialized by definition. That's not 'propaganda', that's just 'what it is'. [1] https://en.wikipedia.org/wiki/Hyperinflation https://en.wikipedia.org/wiki/Hyperinflation
- EricE 6y ago"The practices employed by Central Banks are not fig leaves - those rules are how we define money and are maybe the most important rules in any country." heh - https://www.youtube.com/watch?v=noQsHiTJAXo https://www.youtube.com/watch?v=noQsHiTJAXo