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March 19, 2019 | MMT, Green New Deal, Public Banks, QE!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian: http://kingdomecon.wordpress.com.

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Can America avoid the world system so as to fund public banks (via QE dollars)?

Image result for public banks funded by QE to create a green new deal

QE emerges from a Central Bank and the units emerge from thin-air!

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The idea could work for America (but what about all the other nations with weak currencies)?

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Is money from nothing a concept which would work globally? I don’t think so!

Image result for public banks funded by QE to create a green new deal

Today, I would like to focus on the idea that America can issue dollars (created from thin-air) via public banks to fund this idea called the Green New Deal. The American dollar (as of today) is relatively strong compared to most other digital currencies. This allows America to do creative schemes (like start a group of public banks) and fund these banks with QE dollars created digitally by our Central Bank. Most other countries are unable to do this as their digital currencies are weak and fragile.

 

America has the reserve currency for the planet and we have 800 military bases to give everyone a fearful emotion on issues of changes in policy. This favorable position of America (as of today) allows us to create new schemes like this Green New Deal. For America a new QE policy to fund a group of public banks is possible. We could then make loans to customers (approved by our politicians) so as to fund all kinds of new infrastructure projects and green projects which our politicians desire.

 

America and her strong digital dollar allows us to play monetary games…which other countries can not consider. Their currencies are not in high demand nor a reserve currency. Could a country like Venezuela start a group of public banks and fund these banks with their QE operations (the Bolivar currency)? Could Iran, Afghanistan, Libya, Syria, Egypt, Sudan, Nigeria, Sweden, Finland, Russia, or even China start a similar scheme for their political dreams? I don’t think so!

 

The ideas now being presented by political pundits from America could work short-term as the American dollar is supreme and in high demand globally. But all the other nations (some 175 or more with weak currencies) could not initiate this type of scheme for their people. What kind of example are we setting with all these schemes which create money (our dollar) out-of-thin air (nothing)? Are we promoting an international scheme which is sound for all nations? Does MAGA prevail when most people are fighting for economic survival?

 

The idea that America should create a bunch of public banks (funded by our Central Bank via QE operations) is ludicrous on its face. Since when is our dollar the only currency on this planet? What kind of example are we setting by creating dollars out-of-thin-air and then funding countless new green projects just to help American citizens? What about Venezuela, Zimbabwe, Syria, Afghanistan, Russia, Nigeria, Argentina, and the host of weaker nations who struggle with basic survival needs?

 

Is America the ONLY nation that matters going forward? The idea that making America Great Again (MAGA)…to the detriment of all other nations is an ego driven mindset IMO. It will not work and it can not work in a world where information is available to all. Think about the entire global system and the needs of all our people on this planet! Economics and money must serve everyone or commerce can not work longer-term. Have a good day!

 

I am: http:/kingdomecon.wordpress.com.

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March 19th, 2019

Posted In: Kingdom Economics

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