Re: Putting Chartalism In Its Place?

["William B. Ryan" <william_b_ryan@xxxxxxxxx>]

The term linguistically derives from "charter" or
"contract" which can merely mean "tickets" that are
redeemable for goods and services into final
consumption, as opposed to money as "medium of
exchange."  The modern economy is primarily about
mass production/consumption where labor is separated
from the means of production through stages of
production, not about trade between individualized
consumer/producers in single stage production.  The
"taxes drive money" thing derives from Knapp's "state
money" theory.  Yes, you can impose the "state"
theory on indigenous people by cracking the whip in
West Africa.
--

***]
The important point is that it serves as a guide as
an important manner in which a monetary economy may
be organized, with certain important policy
implications.

Best,

Mat
--

The last sentence by Mat is operational.

Henry C.K. Liu
[***

Indeed, and the key words are "may be organized."
That is to say, the "state theory" version of
"chartalism" is not a theory of economics but a
theory about how people can be controlled and for
that it is quite valid. Despots have proven that time
and time again. They are forced to use your "state
money" because it's either that or die.

--

--------- Original Message ---------

DATE: Tue, 23 Sep 2003 11:21:45
From: "Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>
To: pkt@xxxxxxxxxxxxxxxx
Cc:

>History is not truth.  It is merely a selective recording of human
>errors in the past. Just because it happened or not happened in the past
>does not provide justification for the present or the future.
>
>Th last sentence by Mat is operational.
>
>Henry C.K. Liu
>
>Forstater, Mathew wrote:
>> An additional point, for clarification:
>>
>> No one (I know of) is arguing that ALL monies in history are
>> 'tax-driven'.  Just that some (even many, and many more than we once
>> thought) are, and it is one (important ) mechanism for establishing a
>> currency, under certain conditions.  So of course there are many
>> examples of many different kinds of money in history etc.
>>
>> The important point is that it serves as a guide as an important manner
>> in which a monetary economy may be organized, with certain important
>> policy implications.
>>
>> Best,
>>
>> Mat
>>
>>
>
>



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