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Eleventh, inflation is not now controlled by interest rates – because we don’t want them to rise. Richard Murphy [emphasis added]
Sounds lovely, doesn't it? Since usury is bad (at least from one's own countrymen, cf. Deuteronomy 23:19-20) then set interest rates in fiat permanently to zero.
But the devil is in the details: The MMT plan is to offer banks unlimited, unsecured fiat loans at zero percent interest to keep their borrowing costs at zero.
But that's more welfare for the banks and violates equal protection under the law in favor of the banks and the so-called "credit worthy."
Why not instead allow all citizens (at least) to use fiat in account form at the Central Bank and distribute fiat equally to all citizens to drive interest rates down? That plus negative interest on large accounts should drive interest rates in fiat as low as desired.
2 comments:
Too long, Biden/Harris won't read it.
Eleventh, inflation is not now controlled by interest rates – because we don’t want them to rise. Richard Murphy [emphasis added]
Sounds lovely, doesn't it? Since usury is bad (at least from one's own countrymen, cf. Deuteronomy 23:19-20) then set interest rates in fiat permanently to zero.
But the devil is in the details: The MMT plan is to offer banks unlimited, unsecured fiat loans at zero percent interest to keep their borrowing costs at zero.
But that's more welfare for the banks and violates equal protection under the law in favor of the banks and the so-called "credit worthy."
Why not instead allow all citizens (at least) to use fiat in account form at the Central Bank and distribute fiat equally to all citizens to drive interest rates down? That plus negative interest on large accounts should drive interest rates in fiat as low as desired.
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