An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Wednesday, June 26, 2019
The 1 question journalists should stop asking 2020 Democrats — Jeff Spros
Except the economy runs off private bank deposits, not fiat, and the banks create those too when they lend (Bank loans create bank deposits).
ReplyDeleteAnd who'll be punished if the banks create price inflation? The banks?
No! The non-rich will be punished via taxes on their consumption since the rich don't consume enough to matter.
So instead of tax and spend we'll get spend and tax the non-rich in the event of price inflation.
How just is that given government privileges for the banks?