Author Archive

The ECB must rise above itself to rescue the eurozone

Aug 10, 2011 Comments Off on The ECB must rise above itself to rescue the eurozone
Great post by Bill Black on how the ECB must break and remake it's own rules. In addition to fighting severe inflation, the ECB must (1) minimize unemployment, (2) serve as a lender of last resort to member nations and banks, and (3) serve as a “regulatory cop on the beat” to prevent the epidemics of accounting control fraud in EU banks that hyper-inflated financial bubbles
Read more

More is better when it comes to currencies

Aug 01, 2011 Comments Off on More is better when it comes to currencies
I missed this when it was first posted in NEF. It proposes what Feasta has always held; that a single currency however efficient for market is not optimal when other considerations such as systemic risk is taken into account. It is nice to see that we are not alone and that these ideas are finally getting into the mainstream.
Read more

Why minting trillion dollar coins is not inflationary

Aug 01, 2011 Comments Off on Why minting trillion dollar coins is not inflationary
This is a long post in New Economic Perspectives setting out patiently and exhaustively why minting trillion dollar coins is not inflationary in itself [...]
Read more

TAXES DRIVE MONEY

Jul 26, 2011 Comments Off on TAXES DRIVE MONEY
This site is titled 'Smart Taxes' so why ask some, do we spend so much space discussing monetary and financial affairs. The short answer is that without taxes, there would be no modern money - they are two sides of the same coin so to speak - pun intended. The long answer is set out here by Dr Randal Wray in his 8th lesson on MMT called " Taxes Drive Money".
Read more

Obama is Worse than Hoover

Jul 26, 2011 Comments Off on Obama is Worse than Hoover
From New Perspectives, Auerback writes, more in sadness than anger at the entirely avoidable crisis the US faces.
Read more

Local solution to Greece’s international crisis

Jul 25, 2011 Comments Off on Local solution to Greece’s international crisis
One of the lessons there has been the ability of new kinds of money to keep people alive while the bankers extract their pound of flesh. The problem with the euro, in this respect, is not that it is too big, it is because it is the only means of exchange available to Greece.
Read more

“The Quantity Theory of Money” Bullshit

Jul 22, 2011 Comments Off on “The Quantity Theory of Money” Bullshit
The biggest fear and objection to MMT ideas of non debt based government spending is - inflation. Even progressive cite inflation as the reason why a ECB distribution of debt free money on a per capital basis should not be attempted no matter how attractive it appeared. When one asks why these words are intoned in a very serious voice " the quantity theory of money'. To non economists the words sound impressive but harmless. But belief in the power of this mantra is pervasive in the political classes and because it is believed it has power much like the witch doctors magic. This article by Maddog in Money and Public Purpose on the Daily Kos blog goes to the trouble to give us an antidote to the power of these words by explaining the even bigger juju formula it relies upon. He then explains the circular logic used by the witchdoctors, oops, I mean neoliberal economist to make the formula deliver the outcome he wants. Maddog concludes thus..
Read more

Ballyhea Says No

Jul 19, 2011 Comments Off on Ballyhea Says No
Who says the West is Dead? While Dubliner sophisticates moan about the cuts, their country cousins have taken to action even if it is just marching down the street. They have also taken to counting the costs of the bond holder bailout on a new facebook site. See this article by the excellent Namawinelake.
Read more