In a recent article, Michael Pettis is missing the point of arguments that claim the Chinese money system is different. The point is that the Chinese government effectively owns and operates the Chinese money system
by Derryl Hermanutz In his book, “The 7 Deadly Innocent Frauds of Economic Policy”, modern money theory (MMT) advocate Warren Mosler distinguishes between three very different kinds of money systems, “Historically, there have been three categories of money: commodity, credit, and fiat. Commodity money consists of some durable material of intrinsic value, typically gold or silver …
by Derryl Hermanutz From the Associated Press, hosted by Google, Monday, November 21, 2011: The European Commission chief said Monday he wants to introduce eurobonds issued jointly by the 17 euro nations as an effective way to tackle the financial crisis, an idea that puts him on a collision course with German Chancellor Angela Merkel.
Humans are not rational in the truth-maximizing sense of the term. They do not want to know the whole truth if some parts of truth contradict what they want to happen. Humans are values-maximizing in the short run, not truth maximizing in the long run.
Debt is the new global feudal lord. Debt will not be repaid and soon the debt service won’t be payable either. The serfs, not the Lords, should be bailed out.