I was fascinated by the article. I'm always amazed at how journalists manage to use big words and highfalutin concepts I need to look up!
Broadly, I agree with some of Jan’s criticisms of mainstream economics. In particular, I think it is right to question models that assume rational actors, efficient markets and banks as mere intermediaries. BTW, it's crazy that neoclassical economists don't actually have a place for currency creation or money in their models. Hence, they can never get it right, as the author writes in his "Monetary Policy: The Economy Without Banks" section!
As an MMTer (Modern Monetary Theory), I reckon that the author's understanding that "mainstream economics is wrong" leads him to the erroneous conclusion that "therefore there must be a coordinated system of control behind everything".
MMT already explains many of the same outcomes without requiring a grand conspiracy. Currency-issuing governments, economists and central bankers often act as though currency-issuing governments are financially constrained like households. That misunderstanding leads to unnecessary austerity, unemployment, privatisation and underinvestment in public services.
To me, the biggest revelation of MMT is not that hidden elites secretly control money. It's that elected currency-issuing governments already possess far more monetary capacity than they realise, but political choices and economic myths prevent them from using it effectively.
In other words, I think the article correctly identifies some problems but misidentifies their cause. MMT says the issue is largely a misunderstanding of how sovereign monetary systems actually work, rather than a coordinated plan by those in power.
Regarding the author's list under "THE VICE IN DEPLOYMENT", although I generally agree with the beneficiaries, he failed to mention that the COVID-19 vaccines saved countless lives. I reckon the question of correlation or causation in each of his seven vices needs to be fully examined. He has accepted causation. I don't agree with that.
I have some sympathy with his Endgame posits. However, the adage "Don't waste a crisis" is what engineered the responses of the ruling elite, not some sort of grand plan over many generations, in my view. The one per cent are opportunists and will take what's on offer. 🥴
Thank you for this excellent perspective. A reminder of why places like Substack are invaluable in providing alternative viewpoints that MSM miss - because they are part of the collusion!
Canada would be energy independent if it weren't for the imaginations of the liberal party who have dismantled our oil and gas industries, preferring to leave it all in the ground in the name of CO2.
Are you familiar with the System Dynamics critique of conventional economics? You have a similar analysis - that conventional economics (and not just the free-market version) is based around ridiculous assumptions. SD also has the advantage that sudden, unpredictable shocks are considered 'normal' behaviour because the SD model is based on positive feedback and hence the economy is an Evolutionary Complex System.
Not a lot, ill check into it, thanks. I have looked at artificial shocks introduced to predict population behavior and resistance points. Covid being an example.
In that states function as social super organisms, government, executive and regulatory, is the nervous system. Money and banking are blood and the circulation system.
We have evolved enough to understand that as government has to serve the entire society, that it works best as a public utility. We haven't yet come to understand the same principle applies to banking. when the medium enabling markets is a player and not a utility, the rest are tenant farmers.
In a market economy, money is the medium. In a capitalist economy, money is the message.
As linear, goal oriented creatures in this cyclical, circular, reciprocal, feedback generated reality, people see money as signal to save and store, while markets need it to circulate. Consequently Econ 101 refers to money as both medium of exchange and store of value.
In your body, blood is the medium, fat is the store. Mix them up and you are dead.
Roads are a medium, parking lots are a store. If we treated roads like we treat money, everything would be paved over, but we would still be fighting over who has the biggest lots.
As a medium, you own money like you own the section of road you are on, or the air and water flowing through your body.
While we might think of it as a commodity to mine from the economy, like we mine gold from the ground, or bitcoin from computer processing, it functions as a contract, between the holder and the rest of society.
As a contract, storing the asset side of the ledger requires a debt on the other side, so much economic, social and political activity is designed to generate debt, to store the illusion of wealth.
That the flunkies allowed in DC are best at running up debt and the financial sector needs this debt to grow metastatically is not coincidence. The secret sauce of capitalism is public debt backing private wealth. "The real money is in bonds."
Their long term problem is that eventually it all goes nova. Greed as the primary motivating factor has the strategic vision of bacteria racing across a petri dish. Infinite growth economics.
Russia and China have effectively gone back to private government, with Putin and Xi as respective CEO's. Essentially to keep their oligarchs in check and ours at bay.
Either the parasite destroys the organism, or the organism develops an immune response.
Impressing clear and more than worth to think about. For example : I never had such a look on the success of the German Empire as a economic alternative to the existing model. I would like to have some more informations about this detail. Some recommendations for literature for example
I was fascinated by the article. I'm always amazed at how journalists manage to use big words and highfalutin concepts I need to look up!
Broadly, I agree with some of Jan’s criticisms of mainstream economics. In particular, I think it is right to question models that assume rational actors, efficient markets and banks as mere intermediaries. BTW, it's crazy that neoclassical economists don't actually have a place for currency creation or money in their models. Hence, they can never get it right, as the author writes in his "Monetary Policy: The Economy Without Banks" section!
As an MMTer (Modern Monetary Theory), I reckon that the author's understanding that "mainstream economics is wrong" leads him to the erroneous conclusion that "therefore there must be a coordinated system of control behind everything".
MMT already explains many of the same outcomes without requiring a grand conspiracy. Currency-issuing governments, economists and central bankers often act as though currency-issuing governments are financially constrained like households. That misunderstanding leads to unnecessary austerity, unemployment, privatisation and underinvestment in public services.
To me, the biggest revelation of MMT is not that hidden elites secretly control money. It's that elected currency-issuing governments already possess far more monetary capacity than they realise, but political choices and economic myths prevent them from using it effectively.
In other words, I think the article correctly identifies some problems but misidentifies their cause. MMT says the issue is largely a misunderstanding of how sovereign monetary systems actually work, rather than a coordinated plan by those in power.
Regarding the author's list under "THE VICE IN DEPLOYMENT", although I generally agree with the beneficiaries, he failed to mention that the COVID-19 vaccines saved countless lives. I reckon the question of correlation or causation in each of his seven vices needs to be fully examined. He has accepted causation. I don't agree with that.
I have some sympathy with his Endgame posits. However, the adage "Don't waste a crisis" is what engineered the responses of the ruling elite, not some sort of grand plan over many generations, in my view. The one per cent are opportunists and will take what's on offer. 🥴
Great feedback, thank you. Interesting points. And youre right the truth of it rests on a sliding scale
Thanx, Jan. I've been studying MMT for over eight years now, and I find it answers so many of the conundrums put up by neoclassical economics. 🤗
Thank you for this excellent perspective. A reminder of why places like Substack are invaluable in providing alternative viewpoints that MSM miss - because they are part of the collusion!
Canada would be energy independent if it weren't for the imaginations of the liberal party who have dismantled our oil and gas industries, preferring to leave it all in the ground in the name of CO2.
Are you familiar with the System Dynamics critique of conventional economics? You have a similar analysis - that conventional economics (and not just the free-market version) is based around ridiculous assumptions. SD also has the advantage that sudden, unpredictable shocks are considered 'normal' behaviour because the SD model is based on positive feedback and hence the economy is an Evolutionary Complex System.
Not a lot, ill check into it, thanks. I have looked at artificial shocks introduced to predict population behavior and resistance points. Covid being an example.
Powerfully illuminating writing!
Makes sense. We’re all just along for the ride.
Its all theatre and we are manifesting their vision.
Awaiting the follow-up; ‘Oligarchy’ the road to freedom and prosperity.
In that states function as social super organisms, government, executive and regulatory, is the nervous system. Money and banking are blood and the circulation system.
We have evolved enough to understand that as government has to serve the entire society, that it works best as a public utility. We haven't yet come to understand the same principle applies to banking. when the medium enabling markets is a player and not a utility, the rest are tenant farmers.
In a market economy, money is the medium. In a capitalist economy, money is the message.
As linear, goal oriented creatures in this cyclical, circular, reciprocal, feedback generated reality, people see money as signal to save and store, while markets need it to circulate. Consequently Econ 101 refers to money as both medium of exchange and store of value.
In your body, blood is the medium, fat is the store. Mix them up and you are dead.
Roads are a medium, parking lots are a store. If we treated roads like we treat money, everything would be paved over, but we would still be fighting over who has the biggest lots.
As a medium, you own money like you own the section of road you are on, or the air and water flowing through your body.
While we might think of it as a commodity to mine from the economy, like we mine gold from the ground, or bitcoin from computer processing, it functions as a contract, between the holder and the rest of society.
As a contract, storing the asset side of the ledger requires a debt on the other side, so much economic, social and political activity is designed to generate debt, to store the illusion of wealth.
That the flunkies allowed in DC are best at running up debt and the financial sector needs this debt to grow metastatically is not coincidence. The secret sauce of capitalism is public debt backing private wealth. "The real money is in bonds."
Their long term problem is that eventually it all goes nova. Greed as the primary motivating factor has the strategic vision of bacteria racing across a petri dish. Infinite growth economics.
Russia and China have effectively gone back to private government, with Putin and Xi as respective CEO's. Essentially to keep their oligarchs in check and ours at bay.
Either the parasite destroys the organism, or the organism develops an immune response.
This is excellent and true, however it begs the begs a question? Where is the root of this?
What terrific "economic" tour de force!
Statism is the core problem. Centralization doesn’t work.
Brilliant piece.
Excellent piece - 100% Truth
☁️good listen
Impressing clear and more than worth to think about. For example : I never had such a look on the success of the German Empire as a economic alternative to the existing model. I would like to have some more informations about this detail. Some recommendations for literature for example