Re: Putting Chartalism In Its Place?

["John Gelles" <indexed-savings@xxxxxxxxxxxxx>]

Gunnar Tómasson writes:

"In the case of SDRs -- a world currency "created and
supported" by the IMF -- its "abundance" is "controlled"
through an "allocation" process based on subjective
evaluation by the IMF of statistical criteria relating to the
"adequacy" of  international "liquidity" relative to the level
of world trade, with another set of statistical criteria
governing the actual use of SDRs in official settlements
among IMF members."

Moreover, Stiglitz refers to his present suggested reform
of the financial structure, as a "global greenback" solution.
It would protect global trade from debt-induced depression
by use of interest-free, debt-free, tax-free money.

We know what money is -- it's what sellers willingly take
from buyers, in preference to barter.

The point of arguing over money makes sense only when
society needs MORE real output than it has and it is casting
about for ways to increase real output as it simultaneously
solves such problems as unemployment,  poverty, disease,
pollution, corruption and violence. One way is to use
MORE money to motivate MORE work and production.

At this point, if government elects to borrow more money
instead of spending more into circulation, it invites higher
future taxes.

If fear of higher taxes can be reduced, government will find
it easier to find the extra money to solve our un-solved
problems -- leaving in place a better monetary system of
production (rather than a police state command economy).

John Gelles