Today’s Modern Money Primer

This week’s primer deals with IOU’s denominated in the national money of account. So before you go out spending your hard earned dollars on burgers and beer, take a glance at how they actually function as IOU’s in our modern monetary system.

And of course, have a safe and relaxing Labor Day!

One response to “Today’s Modern Money Primer

  1. Now also the true capitalists have confirmed they are true MMT:rs. Johan JaveusChief Strategist, Head of Trading Strategy – SEB (Skandinaviska Enskilda Banken) on one of Sweden’s largest business banks the financial arm of the dominant Swedish capitalist family Wallenberg, was commenting on public radio the Swizz decision to suppress their currency.My wobbly translation:“How probable is it that this will succeed?– It is very likely they will succeed. What Swizz does is that they pledge to sell its own currency and buy foreign currency to keep its currency at a certain level.Then the fact is that Swizz central bank can print unlimited amounts of Swizz francs can they never be short of money, there is no risk that the money supply will drain.What risk are there?In the long run there can be tendency when one print more and more money that it create intrinsic inflation risk in the economy. But the inflation is very low in Swizz so de risk is limited. As it is there is risk of to low inflation.”Isn’t that capitalist a true MMT:r or not? Unlimited money supply and no risk of inflation, he must have delirium our capitalist friend?But I could bet on that the same fellow would have been close to panic and hysteria if this unlimited money supply was announced to be used to alleviate unemployment and misery among the masses, the inflation risk have then of course been imminent and there hadn’t been any unlimited supply of money without dire consequences, especially for the working class.