******************** POSTING RULES & NOTES ********************
#1 YOU MUST clip all extraneous text when replying to a message.
#2 This mail-list, like most, is publicly & permanently archived.
#3 Subscribe and post under an alias if #2 is a concern.
*****************************************************************
The basic premise of MMT is that a country can print mountains of cash
without any consequence in relation to the world economy. Except for
America, which has the unique privilege of being the world reserve
currency, and Saudi Arabia, which produces the commodity that the dollar is
pegged to, that function is fundamentally impossible BECAUSE Global
Northern imperialism would basically scuttle the implementation of an MMT
project overnight. MMT exists in an ideological bubble divorced from the
rule of finance capital. Even if you have issues with varieties of
Leninism, any Marxist analysis divorced from imperialism in this manner is
pretty inept. Except for the efforts of the Chinese, who have stockpiled
gold so they can eventually transition the yuan to the gold standard, there
isn't a world currency not dependent on the American petro-dollar in our
post-Bretton Woods worldwide economic landscape.
>From Henwood (again so it sinks in this time):
Countries around the world keep their reserves (basically rainy-day funds
on a very large scale held by governments at their central banks) in
dollars, which make them effectively a captive market for US Treasury bonds
(which is how the dollars are kept). Also, major commodities like oil are
priced in dollars, forcing countries to accumulate the currency to pay for
essential imports. That means the United States, exceptionally, can run
giant deficits and borrow on a vast scale with little constraint (so far).
Nor do we have to worry about the value of the dollar (for now, though you
have to wonder how long the exorbitant privilege will last in a world where
US dominance is eroding). But less privileged countries have to worry about
foreign investors dumping their bonds and driving down the value of their
currency, which would jack up interest rates and inflation.
--
Best regards,
Andrew Stewart
Message: 13
Date: Tue, 21 Apr 2020 09:26:12 -0400
From: MM <marxmai...@gmail.com>
To: Louis Proyect <l...@panix.com>
Cc: Activists and scholars in Marxist tradition
<marxism@lists.csbs.utah.edu>
Subject: Re: [Marxism] MMT, Chartalism, and Keynesianism
Message-ID: <ae50bc7f-27c1-4cf0-b48d-f72e5dae5...@gmail.com>
Content-Type: text/plain; charset=utf-8
> On Apr 21, 2020, at 8:50 AM, Louis Proyect <l...@panix.com> wrote:
>
> Actually, I think it is probably beyond the scope of MMT. I just read
Doug Henwood's article that makes clear it is a policy for G7 nations,
especially the USA, not poor countries like Nicaragua. Indeed, I came to
the conclusion long ago that post-Keynesian economics has little to offer
places like Nicaragua. I got to know Nathan Tankus fairly well when I was
writing some stuff about the difficulties of getting Greece back on the
drachma that were cross-posted on Naked Capitalism. As I began reading Yves
Smith's blog and spending some time with her and Nathan, it occurred to me
at some point that they had zero interest in the global South or what is
sometimes called "development economics".
That?s why I recommended the interview with Fadhel ? the application of MMT
to the global South is *exactly* what he is focused on. But it?s easy to
convince yourself you?ve won an argument when you refuse to listen to the
other side.
_________________________________________________________
Full posting guidelines at: http://www.marxmail.org/sub.htm
Set your options at:
https://lists.csbs.utah.edu/options/marxism/archive%40mail-archive.com
