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It happened this way in pre war nazi Germany as well. The corporate elite demanded war and Hitler gave it to them.
This is rather amazing coming from you MMTers because the entire wacky fiat money regime was created by the elite for the elite in order fund wars and for other thefts of purchasing power from ordinary people without folks realizing what had hit them. Murray Rothbard explains:http://lewrockwell.com/rothbard/rothbard271.htmlhttp://www.lewrockwell.com/rothbard/rothbard156.htmlhttp://lewrockwell.com/rothbard/rothbard269.html
Ummm...no. We went off the gold standard domestically in 1933 under FDR, who did a lot for "ordinary people." Bankers loved the gold standard because it gave them direct control over the money supply. And there hasn't been any "theft in purchasing power." The amount of labor hours required to buy a new car today, is less than it was in 1971. Moreover, your new car today is far more technologically advanced than in 1971. That goes for computers, housing, all kinds of goods and services. In other words, purchasing power has increased.
@ Roddis -The theft of purchasing power comes from gold standard mentality - take the factories to tax free China and make shoes ( as one example ) as cheaply as possible and still charge $50 or more. Said shoes fall apart and contain toxic chemicals and make athlete's foot.The neoliberal run to tax free zone's in China is hardly pro-USA.Fiat money is democratization of money and breaks the banker hold on capital for an elite group.If currency and money circulation is pegged to gold in Fort Knox, then what do you need to do to get more gold ? war.And don't go off about how Fiat money was made to finance wars.The Treaty of Versailles left Austrian schooled Germany with hyperinflation and started off Hitler at an advantage since the poor nits of Germany listened to him, and then started the krystalnacht.
I’ll stand by my Austrian (not neoliberal) analysis. When your precious state spends funny money into existence, it is commandeering assets to which it is not entitled and which are no longer available in the private economy. The assets have been taxed away. If the government had to expressly have the populace agree to a tax in order to have resources to fight a war, the populace would like say hell no (which would be “democratic“). Fiat money allows the elite to commandeer assets and personnel for fighting wars without the populace understanding that they are being robbed. When the inevitable shortages and prices increases hit, these are blamed on the private suppliers. Further, since funny money is invariably injected into specific areas of the economy, those getting the new money first are able to spend it at its present purchasing power. The loss of purchasing power incurred by those not getting new money first is slowly discovered only later, and the connection between cause and effect is denied by the thieving elite (and the MMTers).I’ll stick with Rothbard.
Type alert. I meant to say:the populace would likely say hell no
I would also add that the funny money goes to Chinese bank account TSYs and tax free earnings for mega corps like GE McDonalds Coke Pepsi.Speaking of which they make more in Euros and never repatriat the monies to stimulate nada here in the USA.So with the Euro about the tank, will we see a massive repatriation of earnings by US mega corporations in an attempt to avert a depreciating EURO ?short the Euro ETFand long the USD ETF ??
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