The conventional way of financing property development entangles those involved in a web of debt and conflicting business interests. This week we are featuring two articles from Fleeing Vesuvius which describe a new way of organising developments that promises better buildings, more affordable rents and a stake in the outcome for everyone. Chris Cook provides an overview of this new approach and James Pike gives examples of how it could work to rescue building projects hit by the downturn in Ireland.
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".
From New Perspectives, Auerback writes, more in sadness than anger at the entirely avoidable crisis the US faces.
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.
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..