UPDATE: Major Freedom writes:
If the “gold standard”, which supposedly is a country using a
money produced by some entity outside the country, then by MMT logic,
every monetary system that is controlled by a group of people “on behalf
of” everyone else, are ALSO “gold standards”.
Example. I can’t print my own money and pay taxes with it. I must accept US dollars and pay taxes.
Therefore, I am on a pseudo-gold standard, because I cannot pay my debts in my own issued currency. The MMT optimal solution then, is for me to be able to pay my debts to the IRS in currency I myself print, so that I can escape from the restricting, choking, suffocating, under-supply of money that constantly puts limits on what I can consume.
The supreme irony of MMT theory is that when their attacks against non-fiat money are taken to their logical conclusion, the result is a world where everyone can print money, which of course means nobody will accept paper money, and a precious metals standard will arise.
That is too funny.
Example. I can’t print my own money and pay taxes with it. I must accept US dollars and pay taxes.
Therefore, I am on a pseudo-gold standard, because I cannot pay my debts in my own issued currency. The MMT optimal solution then, is for me to be able to pay my debts to the IRS in currency I myself print, so that I can escape from the restricting, choking, suffocating, under-supply of money that constantly puts limits on what I can consume.
The supreme irony of MMT theory is that when their attacks against non-fiat money are taken to their logical conclusion, the result is a world where everyone can print money, which of course means nobody will accept paper money, and a precious metals standard will arise.
That is too funny.
UPDATE 2 –Also from Major Freedom:
It was the opponents who educated MMTers on what they were
sloppily trying to say regarding these concepts but couldn’t without butchering
the English language.
What do you think a gold standard is?
ReplyDeleteWhen a government enacts and enforces a statute providing that its currency is always convertible into a specific amount of gold.
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