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Susan Mercurio's avatar

Off-topic, but have you looked into Modern Monetary Theory (MMT)?

Because if everything you're being told about foreign policy is a lie, everything you're being told about the US economy is a lie, too.

MMT is an empirical study of how an economy with a fiat currency works. Empirical study = looking at an economy with your eyes open.

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Starry Gordon's avatar

A financial system based on MMT is possible, but it requires state force to impose value on the money. In classical (?) theory, people believe in fiat money because they think it represents something else of value, like a precious metal, which exists in theory somewhere, or could be collected (by force) if necessary. MMT suggests that the state just print the money anyway, but unless people believe in the money it won't work as a reliable store of value and medium of exchange. So when disbelief occurs, the state has to summon value, by force if necessary, to revaluate the money it issued. It must tax, expropriate, draft, conquer the needed value. (Value could be anything people accept as such.) So the system implied by MMT isn't that different than what we have already, where the value of the money is upheld by similar means.

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Daren Sweeney's avatar

Yeah, MMT better explains the last 40 years than classical monetarist theory.

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Feral Finster's avatar

I am aware of MMT.

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