Re: Mosler Seminar

[Warren Mosler <mosler@xxxxxxxx>]

James R. Olson, jr. wrote:
>
> At 02:12 AM 3/3/97 -0600, Mason wrote:
> >
> >8. I confess that I have yet to accept taxes as the sole
> >   basis of fiat money.  If the government declares a money
> >   legally enforceable "legal tender" for contracts, then
> >   aren't taxes simply another contract payable in that
> >   money?
>
> The LETS thread has got me chewing on the idea of a state [province] or
> county based fiat currency, but the federal mandate that only fedeal notes
> are legal tender is a real problem for the idea.  The best I can think of
> is that the state could issue "tax credits" and either require or allow a
> certain amount of tax liability to be covered by them.

The dollars, marks, yen, etc. are govt issued tax credits.  If the govt allows
others to issue such tax credits, it is the same as simply giving them the money.

As I said before, lets are a simple extension of credit.  They show that
individuals are willing to sell their excess labor on the hope that
someone else might sell theirs premptively as well. This works
particularly well in areas of high unemployment (by definition), and
to me is evidence of even higher excess capacity going to waste.


 But that implies a
> conversion ratio to federal money, and probably would run into the legal
> tender restriction.

--
Warren B. Mosler
Director of Economic Analysis
III Finance

See:

"Soft Currency Economics"
=========================
And related documents:

http://www.gate.net/~mosler/softecon.htm