intro’d to Jesse via his post on the next system site oct 2015:
Monetarily, We Are Already In The Next System…
The government’s debt is the people’s wealth: @JAMyerson gives a lesson in macroeconomic double entry bookkeeping. thenextsystem.org/monetarily-we-…The great majority of money (the great majority of the means of debt repayment) appears not in note- or coin-form, but simply as electronic entries in spreadsheets. These entries came into existence not through minting or printing, but by a keystroke. The primary operation performed by the money system therefore is not circulating money, but crediting and debiting it on balance sheets.[..]Creating money means splitting nothing into two things. Like a physicist at CERN creating a particle of matter and a particle of antimatter out of nothing (and then smashing them into one another so that they mutually annihilate, leaving nothing once more), or like the 7th Century Indian mathematician Brahmagupta first discovering that zero could be split apart into 1 and -1, integers which could then recombine to form zero again, modern money creators make a loan ex nihilo as an asset and a corresponding liability of equal size. ….If I write you an IOU, I have created, out of nothing, an asset (yours) and a liability (mine) of equal size. When I pay you back, you’ll tear up the IOU—the asset and the liability annihilated. In writing the IOU, I have created money.Sort of.
“Anyone can create money,” according to Minsky. “The challenge is to have it accepted.” Money, remember, is “whatever you can use to repay your debts.
[..]In the hierarchy of money forms, IOUs issued by people, households and non-financial firms sit at the bottom. Above them are the IOUs of financial firms—more third parties will accept these promises to pay as means of settling debts than the one I wrote you. Then it’s up to publicly-insured bank deposits, which virtually anyone will accept as a means of debt repayment, and finally, atop the pyramid, the IOU form with the greatest degree of “moneyness”: government liabilities such as treasury securities, coins, and bills—“legal tender for all debts public and private.”
According to Minsky’s most prominent disciples, those in the “neo-chartalist” school of thought (also known as Modern Monetary Theory, or MMT), government liabilities sit atop the “moneyness” pyramid, at least partly, because the state gets to declare what it will accept in tax payment.
One step down the “moneyness” hierarchy of IOUs are deposits created by bank loans. These also enjoy such a high position thanks to the government, which confers many special privileges on banks.
Lower still on the IOU hierarchy are the liabilities of non-bank financial firms like Money Market Mutual Funds, ….Prior to the 2007-8 crisis, the unregulated shadow banking sector’s liabilities totaled around $11 trillion, more than twice the total amount of insured bank deposits.
Minsky’s insights illuminate the widely mystifying money system. Money is created out of nothing, by many different entities, “endogenously.” It appears as a financial asset on someone’s balance sheet and a liability on someone else’s.
Thus, political agents of the oligarchy such as John Boehner pretend we live in the old system, under which money is so scarce that the government might go broke if it adopted policies that favored the working class.
2011 – Jesse talks about Occupy Wall Street
1970 – friedman – corporations to increase profit
idea that corps are people.. idea that monetary donation counts as free speech
only one cure… not electing good people to run things.. the cure is making the people who runs things afraid of us.
requires constant sustained hostility to power..
what occupy is about… to make people in power apprehensive for doing the will/work of the 1%
2008 – got excited about election results.. and right away disillusioned.. realized.. a movement is not electing someone.. a movement is holding those elected accountable..
6 min – in occupy – the living situation is the demand… complete equality…
7 min – 99% doesn’t refer to like-minded people.. rather.. everyone who’s getting steam rolled by 1%, ie: tea party, police, … people who disagree/beat us… they might not stand with us but we stand with them… that’s critical to this..
8 min – not about rt vs left.. et al.. about democracy (people power)… vs plutocracy (wealth power).. it’s about 99% trying to extricate our demo politics from 1% who use for own needs
2014 – 5 communist economic reforms on fox news
1\ guaranteed work for everybody – minsky, caine – to replace conventional stimulus.. (gives firms money and hopes they will hire)
what about radical econ – as placebo to make money irrelevant- minsky saying money is whatever we make people believe it is..
2\ social security for all – not just retirees… friedman – neg income tax.. replace welfare programs… where would money come from… from where all the money comes from.. federal reserve…
3\ take back the land… govt own more land – vienna.. or simple land value tax – tax natural resources.. you could replace every single other tax.. that could finance everything… basically big land owners are not taxed… basically we tax industry and labor
dream bigger J
4\ make everything owned by everybody – sovereign wealth fund.. 80% of financial wealth held by top 10%… ie: alaska – like a hedge/investment fund run by govt… passively invest in stocks/bonds and pay dividends to everybody
5\ public banks
fox news again – 2014 – on collective ownership
5 min – q: on people not working if no ownership, no motivation.. a: look at reality.. most don’t own now.. most in debt
9 min – incentives a tricky thing.. ie: cuba sends most dr’s w/o monetary incentives
2014 – Red Scare -Rolling Stone “Five Economic Reforms Millennials Should Be Fighting For”-The Independents
2\ soc sec for everybody… get rid of B and write checks to people – matt brunic – post on why can’t do away with all… could have everybody on food stamps
3 min – q: how to allocate things w/o prices… a: de regulating zoning.. have to increase housing supply
I’m a big dreamer, so watch me come up with something.