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 The Austrian School of Economic Theory is outdated and irrelevant in the new world order.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)

       

NOTE FROM TANANIA:

In interesting conversations, it was a general agreement that the ROLE OF STOCK EXCHANGES and Capital Formation has changed with globalisation and speed of connectivity. Instead of Capital Formation for a return on investment, stock exchanged ave become SPECULATION FOR QUICK PROFIT centres, alsmost based on Casino Models, with limited requirement for skill to make a call.

Therefore, the basis of Capital Formation by the non-public sector in Free Markets has completely changed and needs to be re-designed.

Lets re-examaine the DELIVERABLES required from a Stock Exchange in order to accummulate risk capital for INVESTMENT PURPOSES in employment expansion opportunities.
Peter V -  Near Lake Victoria, Africa

WHAT-IF?

Imagine......we have created an ideal society, where mankind can live in harmony and happiness with each other, in total balance with our environment & natural resources, healthy lifestyle and habits,scientific advancement for the benefit of all humanity,discovered the ideal political & economic structures,eliminated poverty & disease,managed to resolve all religious conflicts or intollerances, maybe even eliminated all taxes.......

What If ? ...We now had the opportunity to GLOBALLY brainstorm and design a practical and fair socio-political blueprint of a FUTURE-IDEAL MODEL that humanity could use maybe 100 or 500 years from now to govern itself and the earth we depend on? Would YOU like to be a contributing architect to define, debate and propose ideas to create such system for our children's children??

My ambition before I die one day is to put forward an ultimate MANAGEMENT MANUAL FOR HUMANITY. All inputs will be considered, debated, discussed & evaluated towards this objective, under each critical objective & success factor. ANY IDEAS???

WHY SHOULD I CARE ABOUT THE DISTANT FUTURE OF SOCIETY?

I am an engineer living in South Africa, and Manufacturing Director of a medium size companyemploying 250 persons. This is my personal project to design an engineering solution to resolve some of the world's problems in a fair, practical and feasible manner, without ALLOWING current political, economic, environmental or social issues bias the outcome of a FUTURE-IDEAL MODEL for the world we live in. Having lived in the multi-cultural rainbow society of Southern Africa for 41 years, having experienced the MANDELA TRANSFORMATION MIRACLE first hand, seen the absolute extremes of poverty and wealth both in Africa and South America, experienced injustices of past and present political systems, seen absenteeism and attrition of HIV/AIDS take its toll in a high-unemployment society, seen the effect of education in different societies,and having experienced violent crime personally, I see it as a professional duty of each and every concerned individual on this planet to contribue towards a better life for all. The questions are:

1. WHAT are the areas of concern that we would like to see changed for the benefit of individuals and humanity?
2. WHERE should we focus first?
3. HOW can we do things better? Eradicate poverty, hunger and misery? Improve Health? Reduce violent conflict? Save the environment? Change the political landscape to get things done that need to be done? Improve individual lifestyle? Optimise limited natural and food resources? How can we raise the education level for all?
4. To what EXTENT do we have to modify our selfish behaviour to get the broad society needs understood and acted upon?

LET THE THINKING BEGIN.