Good read.
My comment to Ed:
Any fixed rate system is going to turn out to be deflationary rather than "stablizing," putting national policy in a bind in downturns. Is there going to be a lender of last resort? Who sets the conditions? Is this government body in control of the world's reserve currency elected and accountable, or it is composed of the world's super-bankers? The New World Order people would have a field day with this, and I suspect that a lot of the Tea Partiers now in control of the GOP are NWO'ers.
Sovereign governments would have to give up monetary sovereignty to join such a currency union even at the international level. Is the world an optimal currency area?
See also Dani Rodrik's "inescapable trilemma of the world economy".
Lots of issues here. Look forward to your thoughts on this.
This comment has been removed by the author.
ReplyDeleteHere is Paul Davidson's proposal:
ReplyDeleteReforming the World's International Money
Tom,
ReplyDeleteI think Stiglitz makes a lot of $ consulting with these international technocrat global banking concerns such as the IMF and the World Bank, etc... I posted a video of him here a while back where it was disclosed he was consulting with Greece to go to the IMF.
This is probably why he has been imo very silent on MMT type issues and policies that could spring from a position of enlightenment via a study of what is revealed by MMT. He is a deficit dove (at best).
The best people to listen to dont make a living on any part of the current institutional structure. (Folks such as yourself ;) no 'ax to grind')
Also the academics and thought leaders in MMT by definition are not making a living on the status quo.
Stiglitz is like Krugman to me... to a great extent a 'sellout'. Very invested in the current arrangements.
Resp,
ps " I suspect that a lot of the Tea Partiers now in control of the GOP are NWO'ers."
To paraphrase Dick Cheney: Big time!
Stiglitz hasn't made a lot of sense to me on macro issues for a long time, if ever. I can't imagine anyone that wants any kind of fixed exchange rate can know much, if anything about macro, especially in light of the tragedy that continues in the EMU.
ReplyDeleteMatt,
I have no idea where your perception of Krugman comes from. Who is more out front fighting the deficit and inflation hawks? Do you see many, if any economic columnists painting the corrupt and nutcase conservatives in the stark light he does?
Krugman isn't exactly establishment, and again, his rejection of MMT has little or no bearing on current policy.
Hopefully you're being oddly sarcastic with the above and with your statement about teabaggers being pro-NWO, which is quite opposite of the case.
China is operating with two currencies - their internal Yuan which keeps their slaves slaves.
ReplyDeleteDenmark operates with their expensive Kroner to keep their masters masters, but also vacation with the Euro, but make their money in Oil USD - so they want a strong dollar. OPEC saves and spends along with China with USD treasury accounts for their rich upper classers.
Everyone is already operating in different currencies and manipulating their mix as best they can. Cannot trade in Argentine pesos nor wire to Argentina without a boat load of regualtions in the way to help them control it. They are sick of all the hyperinflation from 70 and 80's and then the Menem 1 peso to 1 USD fiasco
Anti,
ReplyDeleteNo I interpret Tom's remarks as that the TPs are sort of paranoid about a NWO , the TP sees the NWO as some sort of threat or undesirable. The TP doesnt support NWO rather they fear it (imo somewhat irrationally)...
I usually take in 'The Hal Lindsey Report' every week and Hal is a big TP supporter and has the NWO playing out in his 'End Times' predictions in his ministry. Hal is into the 'conspiracy theory' stuff and thinks the US is bankrupt,etc..
Also, Glenn Beck (btw I think Fox gave him the hook) is also trading in NWO fear mongering. Many others in the 'gospelizing' religious right play up the NWO, 'debtor nation' angle and sell DVDs, books, gold, etc...
Meanwhile, over on the left....
MMT among other things, is a threat to the out-sized financial gains that currently go to the FIRE sector. The FIRE sector provides the rations of the New York high society. This is the society where Krugman (NYT) and Stiglitz (Vanity Fair) live and travel within.
So this is perhaps scary to them, as any reforms that would result from a large public revelation as to the operational realities exposed via MMT may be seen by them as hurting those close to them, and also expose the fact that they have 'gotten it wrong' on this part of econ for quite some time, hence a real drubbing to their ego. Therefore they cannot fully acknowledge the realities of MMT.
Or maybe they really do not understand it. either way they are both out of the truth and are part of the problem at this point imo...
Resp,
interesting idea that TP's are NWO's...you're probably right there...they are just looking for more power and control though and as evil as they come imho. Thank God that God has this whole thing under control!!!
ReplyDeleteWhy can't we have a reserve currency that is not mandated? It could be like a hedge for a nation to hold that currency as well so that in a bind they could use it as if necessary. No need to force people into it or to use it. It's just an international option and certain things like oil for example would be priced in that currency.
It's all so funny though b/c things still go back to fiat...we'd HAVE TO have fiat on any world currency simply b/c of liquidity issues and if that's the case then how would the exchange rate of the reserve currency operate? ...unless of course you want to back it by dirt or grass then maybe it could be convertible and avoid a run! Look at England in '67 I believe it was. It's all a joke. Everyone is screaming that the sky is falling these days when in fact the sky fell already about 40 years ago and we're all just fine...the real problem is no one realizes that we're okay. Kind of like a guy that drowns in standing water simply b/c he is so freaked out that he fails to just stretch his legs down. The world's a crazy place...glad I'm just visiting!!! lol!!!
Clarification: what I meant when I said that TP'ers are NWO's is that they are NWO conspiracy theorists, not that they support an international NWO. These people, judging from Ron Paul, tend to be xenophobic and isolationist in that they emphasize individual sovereignty. About as far as many Libertarians are willing to go with limiting individual sovereignty is the sovereignty of US states. They are opposed to the federal government and a fortiori to any international control that would limit sovereignty.
ReplyDeleteRealize that this is blanket statement that is probably an overgeneralization. But there is a core to which it applies.