Re: Putting Chartalism In Its Place?

[William F Hummel <wfhummel@xxxxxxxxxxx>]

Gunnar:

>Re your comments:
>
>All time-consuming production of goods and services is predicated on
>Credit - in one form or another.

Agreed.
>
>That is to say, Credit - "money" - precedes, and is pre-condition, for
>Government Taxation.

Credit that precedes government taxation becomes fungible with
government fiat money only by government decree.  So your argument
applies only to local (credit) money.  It does not address the subject
of chartalism, which has meaning only in the context of a _national_
currency.

Fungible credit money depends on the promise that it can be converted
at par to fiat money on demand.  You should therefore explain how a
national fiat currency and the credit it supports can long exist
without taxation.

William