tag:blogger.com,1999:blog-2761684730989137546.post7846472780578851642..comments2024-03-29T07:30:30.121-04:00Comments on Mike Norman Economics: Pete Dolack — What Might a Cooperative Economy Actually Look Like?mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2761684730989137546.post-10736033855514621972016-02-27T13:17:06.913-05:002016-02-27T13:17:06.913-05:00Neoliberalism is still dominant, but social democr...<i>Neoliberalism is still dominant, but social democracy is making a comeback politically ...</i> Tom Hickey<br /><br />Naturally. The so-called worthy of government-subsidized private credit eventually create too many problems for the rest of the population to put up with.<br /><br />But then why is social democracy ever replaced? Why is socialism so hated that people only choose it when desperate? And then eventually reject it?<br /><br />Isn't it time to try something different? Isn't eliminating the privileged position of usurers and the most so-called creditworthy something that's never really been tried? At least not in the US since we've NEVER* had fiat accounts available to the general population - leaving it at the mercy of a usury cartel or to deal with unsafe, unweildy physical fiat, coins and paper bills?<br /><br />*A Postal Savings Service does not count since citizens are not allowed to deal with accounts in fiat (aka reserves) but like with accounts at commercial banks, etc. only with liabilities to fiat, a huge difference.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-91268754265040195692016-02-27T07:36:20.645-05:002016-02-27T07:36:20.645-05:00No it isn't. Neil Wilson
Government subsidie...<i>No it isn't. </i> Neil Wilson<br /><br />Government subsidies/privileges for private credit creation favor those with the most equity since those are the most so-called worthy of government-subsidized private credit. And those subsidies/privileges do so at the expense, relative at least, of those with less equity. This is undeniable.<br /><br />But the topic here is what a cooperative economy would look like and that certainly does not include government privileges/subsidies for those with the most equity unless we desire run-away wealth inequality, which we have had, btw. How does that promote cooperation?<br /><br />But regardless, how do you justify government-provided deposit insurance instead of inherently risk-free accounts for all at the central bank? Why should commercial banks, credit unions and other usurers have special privileges? Why shouldn't individual citizens be allowed to deal with their Nation's money, fiat, other than with mere physical fiat, coins and paper bills?Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-60837067599956866022016-02-26T23:04:33.983-05:002016-02-26T23:04:33.983-05:00"The problem is government-privileges for pri..."The problem is government-privileges for private credit creation such as the lack of individual citizen, business, organization, local government, etc. accounts at the central bank and government-provided deposit insurance"<br /><br />No it isn't. <br /><br />NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-22294857690052633692016-02-26T16:57:10.634-05:002016-02-26T16:57:10.634-05:00Private credit creation happens all the time. Neil...<i>Private credit creation happens all the time.</i> Neil Wilson<br /><br />The problem is government-privileges for private credit creation such as the lack of individual citizen, business, organization, local government, etc. accounts at the central bank and government-provided deposit insurance.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-11055334392657384742016-02-26T16:51:20.050-05:002016-02-26T16:51:20.050-05:00It's [a central bank] just a clearing house fo...<i> It's [a central bank] just a clearing house for banks.</i> Neil Wilson<br /><br />And that's precisely the problem. Fiat is a Nation's money and therefore individual citizens, businesses, organizations, local governments, etc. should be allowed to have inherently risk-free accounts at their respective central banks too. <br /><br />Not only that but deposit insurance should be abolished too since it would no longer be necessary. <br /><br /><i>Whatever magic you think it is doing, it isn't.</i> Neil Wilson<br /><br />The lack of individual citizen, business, organization, local government, etc. accounts at the central bank mean that the liabilities of the commercial banks, credit unions, etc. for reserves are largely virtual wrt individual citizens, businesses, organizations, local governments, etc. since physical fiat (coins and paper) is a very poor, unsafe alternative to what would be inherently risk-free accounts at the central bank.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-81789759147675751492016-02-26T15:15:33.076-05:002016-02-26T15:15:33.076-05:00"A cooperative economy would have no subsidie..."A cooperative economy would have no subsidies/privileges* for private credit creation since these allow those with equity to bypass the need to share that equity with workers and the general population or to honestly borrow money from them."<br /><br />Not sure where you get that from. <br /><br />Private credit creation happens all the time. Everybody does it. It's the way trade works. We discount and swap debts between ourselves. <br /><br />Central bank accounts don't really alter that. It's just a clearing house for banks. Whatever magic you think it is doing, it isn't. NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-30293886944708235402016-02-26T14:17:07.420-05:002016-02-26T14:17:07.420-05:00A cooperative economy would have no subsidies/priv...A cooperative economy would have no subsidies/privileges* for private credit creation since these allow those with equity to bypass the need to share that equity with workers and the general population or to honestly borrow money from them.<br /><br /><br />*Such as only allowing commercial banks, credit unions, etc. to have (inherently risk-free) accounts at the central bank instead of allowing individual, business, local government, etc. accounts too. This is very peculiar since fiat is a Nation's money and all citizens should therefore be allowed to have fiat accounts (aka accounts at the central bank), one would think.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.com