Interestingly the current neoliberal government in New Zealand has just refocused our Reserve Bank on just controlling inflation - from Dec 13, 2023 ‘It will retain its financial stability objective and other central bank functions, but the economic objective of "supporting maximum sustainable employment" has been removed from the Act. This vote reverses a change made by Labour in 2019, alongside other Reserve Bank reforms.’
I pray that the lack of retaliation from the USA Democratic Party does not denote that this is Yet One More Thing that they have consciously caved in to, out of some tacit recognition of this shifting economic "reality"?
Thank you again Ann; I truly appreciate all of these insights!
All that is necessary to achieve sustainable, non-inflationary full employment is to eliminate the taxation of income earned producing goods and providing services, eliminate the taxation of tangible capital goods, eliminate the taxation of commerce; AND INSTEAD, measure and capture to cover the cost of public goods and services the ECONOMIC RENTS -- from land, from all natural assets (e.g., frequencies on the broadcast spectrum or even take-off and land slots at airports, and all licenses to exploit resources in our lakes, rivers and oceans), and from all competition-limiting licenses issued by government. Do all this and monetary stability will cease to be a problem.
How am I to interpret this response? I will add that there is no rationale for handing over money issuance to the central bank, which after creating monetary units out of thin air loans those units at interest to the Federal government and creates public debt. The U.S. Treasury can issue money under budgetary constraints imposed by Congress. Then, the money can be spent into the economy by government departments based on the budget approved by the Congress.
FED policy is so ham handed, ineffective and designed to make the word safe for private banking that it is WAAAYYY past due that their charter be amended to not only control but transform inflation into beneficial price and asset deflation. That could be accomplished by having the FED create and distribute the monies (not debt money) to make retail merchants whole on their entire price after those merchants granted the consumer a 50% discount to virtually everything. I'm amazed that guys like Steve Keen who is brilliant and correct that neo-classical macro is largely delusional, still cannot see that utilizing the very same means of creating money in our fiat money system, namely double entry bookkeeping, can't see that the 50% Discount/Rebate at retail sale is a paradigm change in a single policy.
Think about it. It is incredibly stupid to give a single business model a virtual systemic monopoly for the creation of all new mone which is the goal and life's blood of every economic agent, but its even beyond that stupidity to grant them a monopoly paradigm concept to create all new money ONLY AS DEBT. Integrate Monetary Gifting strategically into the Debt Only system and the human civilization-long scales fall from one's eyes regarding the dominating and manipulating power that Finance has had on humanity while the deepest problems of modern economies like chronic inflation, chronic austerity of individual purchasing power the stress of these facts simultaneously resolve.
Interestingly the current neoliberal government in New Zealand has just refocused our Reserve Bank on just controlling inflation - from Dec 13, 2023 ‘It will retain its financial stability objective and other central bank functions, but the economic objective of "supporting maximum sustainable employment" has been removed from the Act. This vote reverses a change made by Labour in 2019, alongside other Reserve Bank reforms.’
Keith…thank you for that information. That is so distressing.
I pray that the lack of retaliation from the USA Democratic Party does not denote that this is Yet One More Thing that they have consciously caved in to, out of some tacit recognition of this shifting economic "reality"?
Thank you again Ann; I truly appreciate all of these insights!
All that is necessary to achieve sustainable, non-inflationary full employment is to eliminate the taxation of income earned producing goods and providing services, eliminate the taxation of tangible capital goods, eliminate the taxation of commerce; AND INSTEAD, measure and capture to cover the cost of public goods and services the ECONOMIC RENTS -- from land, from all natural assets (e.g., frequencies on the broadcast spectrum or even take-off and land slots at airports, and all licenses to exploit resources in our lakes, rivers and oceans), and from all competition-limiting licenses issued by government. Do all this and monetary stability will cease to be a problem.
How am I to interpret this response? I will add that there is no rationale for handing over money issuance to the central bank, which after creating monetary units out of thin air loans those units at interest to the Federal government and creates public debt. The U.S. Treasury can issue money under budgetary constraints imposed by Congress. Then, the money can be spent into the economy by government departments based on the budget approved by the Congress.
FED policy is so ham handed, ineffective and designed to make the word safe for private banking that it is WAAAYYY past due that their charter be amended to not only control but transform inflation into beneficial price and asset deflation. That could be accomplished by having the FED create and distribute the monies (not debt money) to make retail merchants whole on their entire price after those merchants granted the consumer a 50% discount to virtually everything. I'm amazed that guys like Steve Keen who is brilliant and correct that neo-classical macro is largely delusional, still cannot see that utilizing the very same means of creating money in our fiat money system, namely double entry bookkeeping, can't see that the 50% Discount/Rebate at retail sale is a paradigm change in a single policy.
Think about it. It is incredibly stupid to give a single business model a virtual systemic monopoly for the creation of all new mone which is the goal and life's blood of every economic agent, but its even beyond that stupidity to grant them a monopoly paradigm concept to create all new money ONLY AS DEBT. Integrate Monetary Gifting strategically into the Debt Only system and the human civilization-long scales fall from one's eyes regarding the dominating and manipulating power that Finance has had on humanity while the deepest problems of modern economies like chronic inflation, chronic austerity of individual purchasing power the stress of these facts simultaneously resolve.