Given I presented a full analysis of the National Accounts release yesterday, I am calling today Wednesday and not writing much by way of blog posting, to give me more time to write other things th…
Money is the universal equivalence for all commodities, as Marx spells out in Das Kapital. There is nothing magical about it, anything can be used for money in practice, but people tend to choose to base money around something with a relatively stable value- like Gold or Silver, or, in the modern era, the USD. If people did MMT magic with the USD, then other nations will simply abandon it in favor of whatever seems more stable, so the usual MMT argument that we can fuck with the USD however we like and not run any risk since it is the world reserve currency is silly.
You literally wouldn't be able to use any kind of fiat currency if it wasn't spent into existence before
This is especially clear during deficit spending. The monetary sovereign literally creates money out of nowhere.
If you think this is magic, then how do you think you type your comments?
There is no storage of alphanumerical characters I draw from to write this comment. It simply comes from "nowhere" when I hit a key.
Could you please explicate your view on the ontology of money?
Money is the universal equivalence for all commodities, as Marx spells out in Das Kapital. There is nothing magical about it, anything can be used for money in practice, but people tend to choose to base money around something with a relatively stable value- like Gold or Silver, or, in the modern era, the USD. If people did MMT magic with the USD, then other nations will simply abandon it in favor of whatever seems more stable, so the usual MMT argument that we can fuck with the USD however we like and not run any risk since it is the world reserve currency is silly.
Why do you keep saying "magic"?
It literally just describes the fiat money system
But this is the point
It's not IF
Whenever the sovereign spends money is created
You literally wouldn't be able to use any kind of fiat currency if it wasn't spent into existence before
This is especially clear during deficit spending. The monetary sovereign literally creates money out of nowhere.
If you think this is magic, then how do you think you type your comments? There is no storage of alphanumerical characters I draw from to write this comment. It simply comes from "nowhere" when I hit a key.