A brilliant episode. I absolutely love Grace, she really could and should be the Prime Minister. We are doomed unless the appalling people obsessed with the capitalist ideology, allow us to have an economy where we can collectively care about each other, as if we were actually grown ups and not insecure little children, justifying our greed
Great chat and looking forward to GB's next book. As mentioned in my comment on Substack, Grace might be interested in listening to your chat with Steven Hail last year, his insight into the realities of how government finances actually work and how we are conned into thinking that it is financially constrained by taxpayers and the bond market, would do a lot to dismantle the influence of the faux economy.
Really enjoyed that, in particular, the talk around the two economies, “our” one and the “divorced” financial one that we are conned into thinking evidences prosperity.
Grace talked about a crash of, and lack of confidence in, the stock market leading to corporations having less cash, but even that is a con as only a small % of stock market transactions result in new finance for business, the vast majority involves shareholders (computers) gambling with each other without any corporation being involved.
You asked why states prop up the markets and Grace talked about the gov’t being beholding to bond markets and more generally for finance, but as we heard in your chat with Steven Hail last year, this too is a con, probably the biggest, the gov’t creates the £s the bond markets use, it could stop issuing bonds tomorrow, a gov’t that creates its own currency doesn’t need to borrow it.
The first chancellor that stands up and acknowledges this, and that taxation is also the return of the £s it created, ie it doesn’t need them to spend, will dissolve the power and influence of the financial economy.
Understanding money and debt in national accounting does not by itself dismantle the financial system. The example of Germany right now unleashing a 1,000 billion Euro military spending scheme despite having a debt limit anchored in its construction, shows that MMT is applied in praxis every time the elites feel challenged. Understanding money is neither left nor right, but not understanding it means falling trap to the liberal and imperial financial strategies, militarization, and austerity as a precursors of fascism. https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy
So glad you had Grace on. She is a strong advocate for the redistribution of political and economic power.
While I'm not sure I'm on board with the whole Marxist perspective (I think it holds A truth but not the greater truth) I wholeheartedly agree that we should not be uselessly expending energy on arguing the toss between competing analyses. The real prize is the welfare of the planet and the people living on it and any road that leads us in that direction is one that I will follow.
First, let’s separate Markets into Finance and Enterprise.
Then recognize Civil Society.
That gives us a new sociology of social choosing through institutions of agency, authority and accountability for making choices for society
- inquisitively, through Civil Society
- predistributively, through Finance
- distributively, through Enterprise
- redistributively, through Politics.
That sociology supports a new social contract for holding these institutions accountable for authenticity and integrity in their institutional exercises of their institutional authority/power true to their institutional agency/purpose/mission.
Next divide Finance into six different investment practices for allocating money set aside by others as savings for investment in enterprise and allocating those aggregations as money made to flow into enterprises for their use in doing their work, for a time, at a cost and on terms that inform the businesses that inform the technologies that inform the choices that inform the economy that informs society that informs our future.
The six different aggregation and allocation protocols are Private Money patronage, Civic Money grants, PublicMoney subsidies, Working Money monetizations, Mad Money securitizations and Fiduciary Money negotiations.
Now look to see that Fiduciary Money has gone Mad, negotiating exclusively with Asset Managers for outperformance in maximizing the highest possible purely pecuniary profit extraction by buying and selling securities in the securities trading markets, solely in the financial best interests of securities trading professionals in reliance on the axiomatic assertion that more fees and profits for securities trading professionals will always also mean a better quality of life for the rest of us.
A brilliant episode. I absolutely love Grace, she really could and should be the Prime Minister. We are doomed unless the appalling people obsessed with the capitalist ideology, allow us to have an economy where we can collectively care about each other, as if we were actually grown ups and not insecure little children, justifying our greed
Great chat and looking forward to GB's next book. As mentioned in my comment on Substack, Grace might be interested in listening to your chat with Steven Hail last year, his insight into the realities of how government finances actually work and how we are conned into thinking that it is financially constrained by taxpayers and the bond market, would do a lot to dismantle the influence of the faux economy.
Really enjoyed that, in particular, the talk around the two economies, “our” one and the “divorced” financial one that we are conned into thinking evidences prosperity.
Grace talked about a crash of, and lack of confidence in, the stock market leading to corporations having less cash, but even that is a con as only a small % of stock market transactions result in new finance for business, the vast majority involves shareholders (computers) gambling with each other without any corporation being involved.
You asked why states prop up the markets and Grace talked about the gov’t being beholding to bond markets and more generally for finance, but as we heard in your chat with Steven Hail last year, this too is a con, probably the biggest, the gov’t creates the £s the bond markets use, it could stop issuing bonds tomorrow, a gov’t that creates its own currency doesn’t need to borrow it.
The first chancellor that stands up and acknowledges this, and that taxation is also the return of the £s it created, ie it doesn’t need them to spend, will dissolve the power and influence of the financial economy.
Understanding money and debt in national accounting does not by itself dismantle the financial system. The example of Germany right now unleashing a 1,000 billion Euro military spending scheme despite having a debt limit anchored in its construction, shows that MMT is applied in praxis every time the elites feel challenged. Understanding money is neither left nor right, but not understanding it means falling trap to the liberal and imperial financial strategies, militarization, and austerity as a precursors of fascism. https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy
Constitution, not construction...
So glad you had Grace on. She is a strong advocate for the redistribution of political and economic power.
While I'm not sure I'm on board with the whole Marxist perspective (I think it holds A truth but not the greater truth) I wholeheartedly agree that we should not be uselessly expending energy on arguing the toss between competing analyses. The real prize is the welfare of the planet and the people living on it and any road that leads us in that direction is one that I will follow.
Interview with Steven Hail: https://open.substack.com/pub/planetcritical/p/what-we-get-wrong-about-money?utm_source=share&utm_medium=android&r=bg9mo
First, let’s separate Markets into Finance and Enterprise.
Then recognize Civil Society.
That gives us a new sociology of social choosing through institutions of agency, authority and accountability for making choices for society
- inquisitively, through Civil Society
- predistributively, through Finance
- distributively, through Enterprise
- redistributively, through Politics.
That sociology supports a new social contract for holding these institutions accountable for authenticity and integrity in their institutional exercises of their institutional authority/power true to their institutional agency/purpose/mission.
Next divide Finance into six different investment practices for allocating money set aside by others as savings for investment in enterprise and allocating those aggregations as money made to flow into enterprises for their use in doing their work, for a time, at a cost and on terms that inform the businesses that inform the technologies that inform the choices that inform the economy that informs society that informs our future.
The six different aggregation and allocation protocols are Private Money patronage, Civic Money grants, PublicMoney subsidies, Working Money monetizations, Mad Money securitizations and Fiduciary Money negotiations.
Now look to see that Fiduciary Money has gone Mad, negotiating exclusively with Asset Managers for outperformance in maximizing the highest possible purely pecuniary profit extraction by buying and selling securities in the securities trading markets, solely in the financial best interests of securities trading professionals in reliance on the axiomatic assertion that more fees and profits for securities trading professionals will always also mean a better quality of life for the rest of us.
That axiom is, of course, false.
So we have to begin there.
Is this scheme you present based on competition?