Malinvestment and Endogenous Money

So much has been written about the endogeneity of money that I thought it was now widely accepted. But recent exchanges have shown me that people STILL aren’t getting it. Most recently, there have been two themes doing the rounds that bother me:

Today’s Wealth Destruction Is Hidden by Government Debt

Still unnoticed by a large part of the population is that we have been living through a period of relative impoverishment. Money has been squandered in welfare spending, bailing out banks or even – as in Europe – of fellow governments. But many people still do not feel the pain.

The Unexplained Part of Public Debt

by Guest Authors Camila FS Campos, Dany Jaimovich and Ugo Panizza, Voxeu How do countries get into debt? And how does this debt rise so fast? The short answer may be obvious, but this column shows that the longer answer certainly isn’t. The answer to the question “How do countries get into debt?” seems trivial. …

U.S. Facing Insolvency by Ignorant Choice

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 …

The Real Truth Is, When It Comes To The Government There Is No Debt

by Guest Author Mike Norman, Chief Economist at John Thomas Financial All we hear about is the debt, the mountain of debt. Debt, debt, debt…it never ends. My question is, what debt? What’s the debt that everyone is talking about? Okay, the so-called, “debt” is $14 trillion or thereabouts. That’s the amount that the non-government …