What if the Public Understood How Money Works? 2


New Economic Perspectives has the article What if the Public Understood How Money Works? by William K Black.  After he explains why the high priests of economics think it would be dangerous for the public to understand how money works, he mentions one way in which the information leaks out in times of war.

Warninng: Opening up this box may expose you to dangerous information. Remember what happened with Pandora.

One of the great truths of fighting wars of survival like World War II is that national leaders discover MMT even if the priestly class of economists yammers on about the terror of deficits and sovereign debt. No UK leader would respond to a German invasion by saying: “Sadly, we’re ‘out of money’ because we’re already running a deficit and our sovereign debt to GDP ratio is high – so I’ve ordered our troops to lay down their arms and surrender.”

 

If you opened the box, you need to know that the MMT mentioned above is Modern Money Theory as Bernie Sanders’ chief economist is about to unleash upon the Senate budget committee.  The other MMT that Black talks about is Monetary Myth Theory.  This is what even revered economists such as Paul Samuelson wanted you to think you knew.  He  even has a Samuelson quote stating that Samuelson wanted the real MMT kept secret.  By the way, the word modern in the Modern Money Theory refers to the era that started several thousands of years ago and continues to this day.


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