MODERN MONETARY THEORY AND CRYPTO CURRENCY CREATION

Many of my thoughts and posts in this blog are now being accepted as potential socio-economic solutions to fight the Global Covid-19 Pandemic Disaster. Among the thoughts expressed , the following are coming to fruition, although I was heavily criticized in the past, both here and in my DISQUS profile under TakisV.

1)    Austerity policies as imposed on Greece (during the 2010-2018 crisis), by the Troika , have proven not to work as they starved the ground economy of liquidity, closed banks, raised taxes, affected private wealth adversely, led to poverty and suicides and as a result led to disintegration of business confidence and rise in reported unemployment to over 30% ( with 60% unemployment of the youth and loss of professional and academic talent - 500 000 graduates, including doctors, engineers, and scientists left the country.

2) Controlled printing of money by the ECB, Fed, BoJ, and Central Banks is a good thing to support disasters and control / reduce unemployment. 

3)    Universal Basic Income (UBI) is proving beneficial to support the poorest classes of the population affected by unemployment or disasters / pandemic

4)     Digital or crypto money can be created outside the formal Banking sector for speedy financial transactions, infrastructure IPO's, etc

5) The use of never-repayable perpetual bonds at extremely low interest rates is a potential reality to finance Government special needs and disasters

6) Unemployment vs inflation (Phillips Curve) is no longer a credible theory due to lower interest rates, automation, robots, digitization and AI displacing formal jobs. Therefore This cannot be used by Governments for Fiscal and Monetary policy settings (eg Central Banks influencing business cycles by manipulating interest rates)

7) Government budgets are being subsidized by central bank Fiat Money Printing, thus leading to improved ground level liquidity, reduced taxation levels and reduced pre-occupation of economists with State Debt:GDP Levels (eg Bank of Japan and Japanese Debt levels > 200%; US Deficit approaching $30 Trillion, etc). The Austrian School of Economic Theory is outdated and irrelevant in the new world order.

8) Governments will reduce their dependence on the Banking and Finance Sectors to borrow debt, as they will be able to print their own controlled Crypto - Digital Money for their needs. One day, we will see a Zero Tax Society emerging, as economists realise that State Economics are not similar to Home or Private Sector economics. For example, a Production Machine Capex produces Income and Profits to repay the Capex and any borrowed interest. A Government spending Capex on Infrastructure to fight Climate Change or Pandemics does not benefit with Profits to repay Capex or Debt, but provides essential services and infrastructure to its societies, without a rate of return, or payback or Net Present Value Earnings! 

So, The New world Order after Covid must lead to lessons learned from above and redesign socio-economic fabrics of societies with only one objective: ELIMINATE POVERTY AND MINIMIZE UNEMPLOYMENT WITH ZERO TAXATION TO STIMULATE PRIVATE GROWTH & PROSPERITY THROUGH SOCIO-ECONOMIC SPEND (Education, Housing, Water, Climate Change projects, Peace between Religions and Nations, Communications and efficient Transport Infrastructures, etc)