Can't argue with any of that But, I believe the biggest issue with Reaganomics was the massive reduction in regulations. Friedman believed the markets knew best, and they simply took it too its extreme, or aka... "going full retard" . And we all know how that turned out..... Which is ironically why we're now discussing MMT.
The extreme has yet to be seen. Just wait and see how full retard it can go. Remember people will do stupid things no matter what theory you have in play. Bad actions also happened on the “gold standard”. Worse happened when there was just a barter system. like with all things balance is the key. Too little or too much regulation is bad. Too little or too much government spending is bad. Well in my view at least.
Sorry i misread what you wrote before, so my last response to this might have not made sense. I was watching a movie while replying and missed the point you made, my apologies. Yes i guess you could say Reagan/Thatcher is on the other end of the spectrum of Cortez. Though MMT and Friedman maybe not, as Friedman was full free market while MMT doesn't really suggest either extreme. My understanding of Warren Mosler view of MMT seems to be a mix of government and market.
So I've been reading Soft Currency Economics ( ver 2). There's a lot to digest reading this. Probably because it tries to flip the conventional narratives upside down. But this is most likely just my own intrapersonal biases. Probably explains why I struggle listening to Mosler explain it in person... Lol. Definitely worth a read, for anyone interested in economic theory. But it also provides a good insight into the day to day operations of the Fed, regardless of whether you agree with his interpretation or not.
I came across these videos that did a good job explaining how the current system (MMT) works. There are more videos on his page.
You can expect problems with any economic system with the word theory in it. And the fact it's already been tried over and over with different names.
Is the problem really modern monetary theory? Or is it modern lazy, misdguided people who want free stuff and don't want to give anything for it? By this I mean it would not really be possible for such alleged terrible money theories to be put into place without at least tacit consent by the populace (in countries with fair elections). How many US folks are willing to give up their social security, medicare, police and fire services provided by municipalities, infrastructure built, military to protect, etc. Part of the need for such "modern theories" is to print the crap out of the currency so everyone can get necessities like I mentioned, and the free stuff (including crooked politicians) even though there isn't enough to pay for it. Unfortunately past US presidents and their followers also came up with the idea that the US has to police the world and give billions of US dollars to loser countries who can't make it on their own and many who don't even like us (kind of like citizens who always want free stuff but don't work real jobs so they don't pay much if any income or social security taxes, and always b!tch about their own country like idealistic college lefties). All who proclaim going to "honest money" and such would cry after they saw what their world looked like after its implementation. It might be great for your grandchildren and such, but would wipe out modern life as we know it in the US. The lazy deadbeats would riot and pillage if their free stuff was taken away. The every citizen gets a trophy (and free $hit like college, health care, waiving student loan debt, etc) folks won't ever allow a return to honest money because they would never win another election without being able to promise free stuff to the plebs. Some alleged right wing folks would be just as mad as many of them get free stuff today and don't pay taxes either. But don't despair, once we have the next crash "the big one", it may create a need for "honest money" since all the paper, non backed promises will evaporate like the morning dew, and you will see a big move towards a unified, electronic currency supposedly "backed" by something to prevent such things from happening again (although they will let it happen again, someday). That's why I own silver today. I welcome what they are doing because for now regular life will go on. We could go on like this for another 5 or maybe even 10 years. I am sure some who complain about non "honest money" probably live their own lives that way with excessive debt and such. Getting free gov stuff without having to work for it is akin to non honest money. It's like non honest free $hit.
No, it’s just a theory that explains how modern monetary policy works. The problem is with modern monetary policy. Governments create credit vouchers out of thin air, these are then distributed, then a tax burden is created which must be paid for using these credit vouchers, these credit vouchers then become in demand. And just to make sure that we don’t horde these credit vouchers the State slowly destroys their value over time. In the absence of religion as a tool of oppression, the State has to use some other tactic.
Until a major player decides that they don't want to play ball. Why have Russia and China been buying up as much gold as they can get there hands on? They will crash the global economy as soon as it suits them.
I can’t answer your question. Probably in an attempt to hedge/strengthen their fiat currencies. Just a word of caution, goldbugs buying up gold in order to profit down the track if the fiat based economies of the world collapse may be sorely disappointed. It may never happen. Why would the world no longer want USD? Goldbugs buying up gold to protect themselves from downturns/collapses in their nation’s fiat currency is probably a wise move.
The world did just fine before the USD, and favoured it over the sterling standard before it. When the US empire collapses (whether climatically or just dwindling over time) like the British empire did, the USD will be replaced with whatever the flavour of the day is. The only thing that has lasted throughout history is the use of gold as a store of wealth.
Alright, I’m just cautioning against those that assume there will be a collapse. I’m not of that school for a variety of reasons. Anymore.
