• ComradeBobRojavakian [he/him]
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    4 years ago

    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.

    • Ewball_Oust [comrade/them]
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      4 years ago

      Why do you keep saying "magic"?

      It literally just describes the fiat money system

      If people did MMT magic with the USD

      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.