Since you have neglected the none from one money creation bomb and the fact that the the borrowed money Returned back to the bank ,which the Bank has lent to you, is Not Destroyed, it is withdrawn to go up north,only your account is balanced and nothing more, but this money is a further non destructible asset traveling up north in this vacuum cleaning process of wealth concentration of Monopoly.
Concentration of everything, and you have still some time to forge your internet sites, to change the obsolete bollocks statements about money creation concerning some other Planet and leave no trace behind, as you normally do..
This post, as a tale opposed to a pack of lies, concerns one of the pillars of MMT- Modern money theory, but from a geostrategic and Superpower way of working- the USA, and it goes against the mainstream economics, but the USA know it, use it,and it works…
The US, by constant Trade deficit gained the Superpower status.
There are some laws to be fulfilled to gain this Status in the debt driven economy. First, The process is a downward spiral of mass purchase power capacity in the USA, the end of the middle class. The Second is the shortening span of durability of sold goods and no environmental protection on both sides, so the sellers side as the buyer.Third, the demographics, the number of population must be big.
But the most important are the Military, the Control of the seas,Information, and the Energy coverage, domestic and a petrodollar pact with the Saudis.
This requirements are necessary for being the Global Superpower.
After this, it is a just piece of cake. And it goes against all economic theories present as a smoke screen to cover the mechanism of being a Superpower, except MMT economics.
This post will cite and is based on two sources. Bill Mitchell and Thomas Fazi book -Reclaiming the State”, go and buy it, it can not be forged day by day as the many internet sites, it is on paper,and the always reliable Bill Michel internet site as a resource to check.
The second source is , funnily enough, Dario Fabbri, Italian, member of the think tank Limes magazine, etc, a possible successor of Lucio Caracciolo, same cynical, but lack of irony attitude (pity), who on 25.march 2018 in L´Espresso weekly magazine published a geostrategic argument of the USA Trade Deficit as the way to control the World.The first real appearance of MMT in Italy at this level.
The idea and the outcome is simple;
By buying foreign goods,the USA /(or any other) export its own Dollars-currency. So all the sellers to the US are tied to the power and politics of the US Dollar.The US Dollar by importing and having a deficit becomes the world currency. The exporters to the USA are becoming like junkies, dependent on the US market.The sellers to the USA are the ones which guard and preserve the Dollar. The US import economy is much safer than the export.The exporters into US are propping up the US world influence.
But all this can go on up to a point and the Trump presidency and all those behind it know it. The too much imports can harm inner US investments, the intellectual property at danger is a vital US domination concern…And there is a threshold, economic and psychologic ,which provokes the disappearing of manufacturing and the inner instability..
The car industry is always a canary in the mine. The car manufacturing makes the world go round, it is a pivot … That is why some red lines of importing exist… US- German diesel gate was the introduction in the game of power…
That is where the other side of the global game- the Eurozone – Germany-will come in shortly…
The US export only 12% of their GDP, compared to Germany 46%, France30%, UK 28% GDP.. So the Superpower is much less vulnerable than the Euro zone members, less it exports, less it is vulnerable and at mercy of the buyers… And by controlling the currency market with the Dollar, they can inject as much liquidity as they like and the others have to buy it…And, for a laugh, the Superpower exports a huge number of scrap metal, and we are back to steel…
And as Dario Fabbri concludes, the USA have and can convince their population to anything ,even to follow any of non economic myths and tales, because the US citizens, even illiterate to the world geography, love being the First Superpower, whatever it takes…the power and the glory of it.
On the trade deficit being much better than trade surplus; exports represent real costs while imports represent real benefits ,See the William Mitchell-Thomas Fazi book, page-206 and around…
And here the Eurozone comes in. Euro cage ,which survives and do not prospers while mostly exporting. By too much export, the inner investment capacity is reduced, the wages must fall behind productivity to stay competitive and the real cost of exporting falls on the population in a downward spiral..
As is brilliantly put in the book by the Authors – Mitchell and Fazi, what do you prefer,
to ship goods in exchange of fiat money or to ship fiat money in exchange of goods, as the US does?
The probable secret deal…?
The probable secret deal or agreement between the ECB-Eurozone Oligarchy and the FED US Oligarchy as a tie and bind between two global partners was a and still is a mirror game of the two Central Banks and Oligarchy positions- US rules by deficit the world and EU is a partner by providing the exports for the US deficit.China included but that is a different game in a same game…. That is why we have two different monetary politics.Austerity and export-EU, over massive Qe and import-USA.To cover each other. But the Eurozone model by betting all on export endangers the limit of the agreement. It is not Trump, we have two “Deep Entities” on both sides of the Atlantic recalculating the positions…
And that is why the German Eurozone driven model comes under “attack”by the USA. it is too much one side export oriented and it completely neglects, by some far fetched ordoliberal “myth” of economic functioning as a smokescreen, the overall inner Eurozone market. The Inner Eurozone markets have a huge room to move and expand, but the economic politics ruling the Eurozone prevent that to happen.Even Germans, paid below what they deserve and having lousy infrastructure and pensions,..German Oligarchy basically thinks for themselves and they have an iron grip on German population and what the voters have to think…
Witchdoctor told You, it is not the economy. It is the Political Economy.
The far fetched fear of pooling and sharing debt in the Eurozone.
This the most striking manipulation which will bury the Eurozone at the end. The Rich, North, German and similar say that they will not guarantee for the lazy south debt, no sharing, no taxes to pay the southerners out, no my money for your debt and similar bollocks.
Bollocks and bullshit. Nobody asks for that, The Only thing needed is the capacity of the ECB to became the lender of the last resort, which just means that by the simple Fiat Power, the ECB guarantees the debt.No taxes, No pooling, just the guarantee of the Lender of the Last Resort that debt can and will be paid… By Fiat Money as is all money in the World…
Even that simple step is not possible…
Italy,the lost cause
After over two months after the elections, even with a change in political picture, the Italian Mountain has delivered, with all trembling and explosion, just a grey mouse.; not one, three major mouses.
But, they are just a different shade of grey. The only game they fight is the zero sum game. Taxing who and how much and no budget room to move.The 5 star movement in just a few month became another grey, neoliberal power seeking mouse, compliant with the Oligarchy and seeking their approval,a grey mouse, following the Angelic Merkelite dogma and so now all mouses involved in slicing the cheese differ slighly. The only difference is, who will get what, which group will win and who will loose, which is already known, of the shrinking cake of the collected taxes. The huge debt looming and cuts for 6% a year of the collected budget, raise taxes and cut the outflow raise or cut and who gets what, the stupid neoliberal game of shortage of money in the Eurozone cage. So, they all turned grey as Schauble, the Guru of the Sect, with the only difference of who is more xenophobic in the common pursuit of austerity and which class or group can benefit from the zero sum game.. They are definitely buying time, so that Mario Draghi can step in 2019, but, will he, be so… reckless to burn his reputation in a few months of being in power? That will be fun…,
So, better run…
Witchdoctor, 2018