A book you should read

The Constitution grants Congress unlimited ability to create money to pay for public services. Instead they allow the federal government to borrow the money from private banks, creating massive debt levels. Go figure.

#Monetary Sovereignty - Mitchell

This is a book you should read.

Stephanie Kelton explains economics from the standpoint of Modern Monetary Theory and her own inside experiences with U.S. Senators.

She provides you with some her own take about why Congress refuses to acknowledge its unlimited ability to create dollars, and pay for benefits.

The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy

While “the DEFICIT MYTH” is not exactly on point with Monetary Sovereignty, the fundamentals are the same (the federal government’s infinite ability to pay for things and the need for federal “debt”). The book is an easy, enjoyable read.

No economics gobbledygook.

You’ll be able to see how her explanations for the causes of inflation and the need for federal taxes differ from those of Monetary Sovereignty. Read her book, and then we can discuss it from the standpoints of the differences and the similarities.

I recommend it to you. I also recommend it especially to your Congressional representatives, who…

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2 thoughts on “A book you should read

  1. Thanks for the link, barovsky. I think the important fact both reviews omit is that 97% of the money in circulation (globally) is created by private banks (out of thin air) when they issue loans – and this includes loans to both the private sector and the public sector. Even the Bank of England acknowledges that this is the way money is created, even though most members of the public, most politicians, and even most economists believe things are the other way around – that central banks create money and banks borrow it from them. The BOE only acknowledges the 80% of money private banks create but economists such as Steven Keen have investigated and the amount they claim banks keep as reserves is not only vastly exaggerated but not closely monitored by the BOE.

    https://www.bankofengland.co.uk/knowledgebank/how-is-money-created

    My reading of Marx is that he believed money creation should be publicly controlled (as the Chinese central bank does) and not remain in the hands of private banks.

    That’s what I support – a monetary system that works as most people believe it does now – with money created by central banks run by independent government commissions. With private banks serving purely as intermediaries. This is referred to as Positive Money.

    Modern Monetary Theory people like Stephanie Kelton support the ability of government to create money and issue it directly into the economy for public expenditures. However they believe private banks should be allowed to create money for use in the private sector.

    I’m not sure if you’re aware of the group Positive Money at https://positivemoney.org/

    They have an excellent series of blogs that outline Modern Monetary Theory much more clearly than either of these reviews do: https://positivemoney.org/2018/09/modern-monetary-theory-and-positive-money/

    Like

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