Why the Banking System is Breaking Up

Michael Hudson has posted the article Why the Banking System is Breaking Up

My guess is that we will now see the Great Unwinding of the great Fictitious Capital boom of 2008-2015. So the chickens are coming hope to roost – with the “chicken” being, perhaps, the elephantine overhang of derivatives fueled by the post-2008 loosening of financial regulation and risk analysis.

Michael Hudson id the only MMT proponent that gives you the graduate school version of MMT. Most of the other proponents of MMT give you the high school version, or maybe the kindergarten version of the explanation.

After I absorbed the kindergarten version,, I had a few questions. Michael Hudson was the only one who had answers other than “Shut-up kid, and go away.”

I wonder if the MMT gurus can change their mind about my assertion that private banks do not create money, but instead they create promises of money. They have all sorts of tricks to come up with the money they promise when they are called to make good on the promises they have made. All is well (hidden) until it is not.

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