Econintersect: Last week former FDIC chairman Sheila Bair and Global Economic Intersection contributor Warren Buffet appeared on the same session of RT Prime Interest. The Mosler segment runs from 2:28 to 9:30 and covers the basic definitions of Modern Monetary Theory (MMT), an economic discipline founded by Mosler with writings first published in book form in 1994 in Soft Currency Economics. The work is based on work that started in the 19th century (and in fact mentioned as early as Adam Smith) which proposed that money is the creation of the state rather than a commodity.
Bair discusses why she feels the Dodd-Frank Act contains all the tools necessary to create conditions where market forces will result in the break up of TBTF (too big to fail) banks.
Watch video after the Read more >> break.
The Mosler segment is from 2:28 – 9:30 and the Bair segment is 16:26 – 22:40.
Hat tip to Roger Erickson.
