The reality underpinning modern finance capital and monetary & fiscal systems long represented financial pornography which no decent newspaper would publish. However, the continuing financial crisis since 2007 has brought into the light all manner of details and practices previously hidden, and many of the myths which constitute modern economics are now being dispelled.Good observations from Chris, as usual. Why the British pound is irrelevant to the debate over independence.
One of the interesting aspects of the Scottish independence debate is that new national monetary and fiscal systems must be built from scratch. Clearly, 21st century problems cannot be solved by 20th century solutions – the irony is that structures and instruments which pre-date modern finance by hundreds, if not thousands of years, point the way to sustainable and decentralised monetary and fiscal systems…
Pieria
Credit Scotland
Chris Cook
3 comments:
It lacks the description of how the circulation medium gets moved back North after it has leaked to London.
There are lots of ways of organising clearing, but ultimately if you have a peg, you have to permit clearances to the thing you are pegged to.
And that means you need a mechanism to keep that pot topped up.
I don't know exactly who Chris Cook is, but his view does not reflect the MMT way of thinking, nor the orthodox way of thinking. I actually couldn't understand very well what he was talking about, and what is his line of thought.
For what I could see, he defends that money is a private credit, and has little to do about government business. So, in his point of view, this Scottish currency debate is useless, as money is not really related to sovereignty. And he doesn't seem to bother about currency peg as well, as if it was not a big deal at all to peg a currency to pound sterling. Of course this view is not really accepted by MMT, I guess, which says that the currency and the government are deeply intertwined.
And I guess he doesn't understand very well the difference about private banknotes and central bank money...
Can anyone clarify this mystery for me?
Here's a link to a bio at P2P.
Chris Cook
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