On the Intellectual Origins of Modern Money Theory

Michael Stephens | February 19, 2016

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One Response to “On the Intellectual Origins of Modern Money Theory”

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  1. Comment by joe bongiovanniMarch 9, 2016 at 9:16 am   Reply

    Well, it seems the theorists were for some reason taken by this hedge fund guy’s observation about the market for Treasury DEBT issues – that both the Fed and the Treasury sold these marketable financial assets. One actually issues, the other buys and sells.

    So the theorists decided this must be worth listening to.
    Then we are told THAT a sovereign government issues its own currency, with a lot of ‘therefores” following.
    Except, didn’t the sovereign King of England relinquish his sovereign issuing rights and abdicate those to a private corporation, the Bank of England, to issue the coin of the realm?
    Isn’t that the real history of money issuance?
    So, while true that a sovereign government CAN issue its own currency, today, no sovereign country today has any other option than t to have its money issued by private bankers, like we do in the U.S.
    The F.R.B.S. issues all that serves as the money supply in the U.S.(c.e.)

    If that is true, then the sovereign government becomes merely another ‘user’ of the currency that it has the power to issue, and that sovereign government borrows that FRBS currency from the private issuers, because like Warren told the theorists, in selling those Bonds, the Treasury borrows the bankers’ money for spending.
    Nuff said.

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