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The 7 Deadly Innocent Frauds of Economic Policy (MMT - Modern Monetary Theory Book 2) [Kindle Edition]

Warren Mosler
3.7 out of 5 stars  See all reviews (44 customer reviews)

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Book Description

The Author has been called "one of the smartest men in finance." CNBC 2010
* "Innocent Frauds" is a term that noted economist Kenneth Galbraith coined in his book, The Economics of Innocent Fraud, to describe frauds inherent in corporate dominated economic life - some innocent and some less so.
* It was not based in legal terms, but on what he saw as a divergence between "approved belief" and "what was reality".
* Galbraith's book was published 5 years before The Matrix movie. The Matrix explored the concepts of discovering the reality/truth versus the approved indoctrinated belief.
* Warren Mosler, called by many as the "Morpheus of Modern Money", explains in this book seven major economic "Innocent Frauds" that will shock you, because it will challenge everything that you have learnt and read about economics.
* For example, the notion that deficits are bad for the economy and the population, when in fact close examination reveals that government deficits are private sector savings, to the penny. Also taxes are not needed to support deficits.
* Click on the book cover and read the Introduction. Take the "red pill" and journey down the rabbit hole and find out the truth about money, deficits and monetary policy.
* Once you discover the truth, you will feel empowered, freed forever from deficit mythology and fear-mongering. THE TRUTH OF OUR TIME.
Some of what you will learn in the rabbit hole is that: 
  • The U.S can never go bankrupt unless that is what congress decides to do. It can never fail to make social security payments or any other type of payment in its own currency. 
  • The government does not need to raise taxes nor borrow to spend, as spending is revenue neutral. In fact, the government has to spend before it can or borrow.
  • Deficits are not a Freddy Krueger that murders the economy and steals its money. 
  • Because deficits =  private sector savings to the penny, deficits do not take money away from entrepreneurs and the private sector.

Editorial Reviews

From the Author

I m in Zurich on March 25 at the Park Hyatt Grand Ballroom at 4 p.m. making a presentation at the CrossRoads Workshops on Emerging markets and the Decadence of the European Model. If you want to meet, pop on by.
This book was written for the general public. This book contains a small biography that shows how I learnt about monetary operations by trading and making money versus getting a doctorate in economics. It is probably the reason why I could see it from "outside of the box". If you are looking for a more detailed economic analysis, have a look at my other book Soft Currency Economics - the little book that could ...
Any professors or TV hosts that read any of my books, I am available to debate the issues raised in my books. Contact information is in the books.

From the Back Cover

<h2>What others are saying about Warren Mosler:</h2>
"One of the brightest minds in finance." CNBC (6/11/10)

"Warren Mosler is one of the most original and clear-eyed participants in today's debates over economic policy." James Galbraith, Former Executive Director, Joint Economic Committee And Professor, The University Of Texas - Austin

"In this model of clarity, Warren Mosler debunks (in his own words) so many of the 'innocent frauds' that have contributed to our current economic and social malaise. More importantly, Mosler is no Ivory Tower academic. He has been a highly successful money manager, and his characterization of our modern monetary system is spot on: Mosler far more accurately depicts market realities than any of the self-styled "mainstream" economics textbooks, which dominate in the halls of academe, and in the corridors of power in Washington, Brussels, and Asia. This book should not only become mandatory reading for students of economics, but any policy maker who truly wants to deal with the grave disasters engendered from years of "reading from the wrong playbook" Marshall Auerback, Director Institute For New Economic Thinking, Pinetree Capital Portfolio Strategist, Fellow For The Economists For Peace And Security, Research Associate, Levy Institute.

"I can say without hesitation that Warren Mosler has had the most profound impact on our understanding of modern money and government budgets of anyone I know or know of, including Nobel Prize winners, Central Bank Directors, Ministers of Finance and full professors at Ivy League Universities. It is no exaggeration to say that his ideas concerning economic theory and policy are responsible for the most exciting new paradigm in economics in the last 30 years - perhaps longer - and he has inspired more economists to turn their attention to the real world of economic policy than any other single individual." Dr. Matthew Forstater, Professor Of Economics, University Of Missouri - Kansas City

"Warren is one of the rare individuals who understand money and finance and how the Treasury and the Fed really work. He receives information from industry experts from all over the world." William K. Black, Associate Professor Of Economics & Law, University Of Missouri - Kansas City

Product Details

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Customer Reviews

Most Helpful Customer Reviews
23 of 28 people found the following review helpful
5.0 out of 5 stars Remarkable! Unnerving! Hit's the Bullseye! October 5, 2010
By Steve M
This counterintuitive analysis is brilliant! The reader must put aside all he knows and believes how the economy works. Readers should not try to fit Warren's model into the model of macroeconomics in their mind. There will be too much conflict.

The reader must read this with an open mind not trying to reconcile the macroeconomic model in the book to what he has mislearned through the years.

Such thoughts as "federal spending is not revenue constrainted" seem impossible unless you change your mental macroeconomic model. After you accept the book's economic model then try to find flaws as it applies to the current state of affairs--not how it conflicts with other economic models. You will be amazed! Warren is right!

The book is for the non economist, yet economists who read it will find no flaws in the analysis.

We would all be better off if politicians, their staff and the media read how the 7 deadly innocent frauds are crippling our economic recovery.

Three cheers for this short, timely, insightful, easy to read unmasking of the wrong road our economic leaders are taking us!
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19 of 23 people found the following review helpful
5.0 out of 5 stars This book needs to be read by every sentient American November 8, 2011
Format:Hardcover|Verified Purchase
Someone get this book to the President of the United States.

I read the free copy that is available online. I am buying two of these books today. One goes to my congressman. This book is that important.

Years ago, a mathematician/physicist who created software in the early 90s for derivatives on Wall Street told me exactly the same thing as Mosler. He chuckled at how "stupid" Americans are about the economy, that they couldn't see or accept what was right in front of their eyes. He said: money is software, and that the smartest guys on Wall Street know that the only thing they need to do is remove the regulations and they're home free. Why? Because we're the reserve currency and we control reserve accounting. Regulations, he told me, were public policy for the benefit of the American people. Getting rid of them was Wall Street's number one goal, then they could all operate globally and no one could touch them. He said deregulation turned Wall Street into a better casino than anything Vegas had to offer because Wall Street controlled the 'house'. He even wrote a paper about it called "The End of Ordinary Money," if you can find it online. (With Google's new controlling algorithm, I doubt you can.) Regulation is public policy, and smart policy represents our country's values. Get rid of them, and you can rob the bank. Legally.

Too bad I didn't really pay attention to what he was saying. Reading Mosler's book brought it all back to me. Mosler, however, believes in principled use of public money. He believes in the idea that the economy is supposed to serve the people, be subservient to it. What his book is about is educating you and me to the basics of how money works after the gold standard was dropped.
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7 of 8 people found the following review helpful
5.0 out of 5 stars The most important book in my life June 16, 2011
It describes how nowadays US monetary system really operates.

Why do our paper US dollars have value at all? They are not backed by gold or any other commodity anymore.

Is the US federal government really the same as household or a business?

Do we really depend on China or any other country to fund our spending?

Do we really have to cut Social Security?

What is the real benefit - export or import?

How can we erase unemployment?

This book should lie on the desk of the US President and all our representatives in Congress.

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12 of 15 people found the following review helpful
5.0 out of 5 stars This is a MUST READ for all Americans!! October 26, 2010
This book was amazing!! This will open your eyes to the truth about our US Monetary System. All Americans should read this. A system created to be so complicated, is real easy to understand with this book.
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16 of 21 people found the following review helpful
5.0 out of 5 stars The Truth About Our Monetary System April 19, 2011
Warren Mosler does an excellent job of describing our modern monetary system.

He challenges and dismantles the incorrect conclusions (innocent frauds) people reach by thinking of the national (currency issuing) government as a household.

A great book that should be required reading for every citizen.
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8 of 10 people found the following review helpful
5.0 out of 5 stars Required Knowledge June 23, 2011
By Butch
Format:Hardcover|Verified Purchase
Mosler's writing is clear, concise and compelling. His message could not be more timely or important. Current, mainstream economic theory (classic Austrian especially) are rooted in commodity based currency or the "Gold Standard" which does not apply to the fiat based currency the U.S. has used since Nixon. We, and our leaders are killing our economic health in ignorance. His policy prescriptions point a clear way forward to a more stable economy and a reinvigorated middle class open to those who are willing to work diligently, which undoubtedly includes the majority of the unemployed.
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3 of 3 people found the following review helpful
Format:Kindle Edition|Verified Purchase
This is one of the most important books I've read in my life. I'll say why I think this is true, in more detail, later on. But, the most important reason is that it introduces a new world view on economics. It is, in our modern lexicon, Paradigm-changing. It is also a short and simply written book, designed to communicate, which I think it does very, very well. The book is a product of very deep thinking as well as very clear thinking. So, whether you agree with it or not; you should read it, take what it says seriously, and learn the reasons and world view behind what it says. Here are more reasons why it is so very important.

The 7 Deadly Innocent Frauds (difs) have been listed by other reviewers, so I won't repeat the list in this review; but taking all 7 of Warren Mosler's difs together, we see the outline of an ideology whose effect is to cripple American potential in both the immediate and the longer term. The 7 difs together constitute a 19th century economic ideology appropriate for a nation with a commodity monetary system, rather than a 21st century economic ideology appropriate for a nation with a fiat monetary system. Partisans of this ideology often call it neoliberalism. But there is nothing "liberal" or progressive about it. Instead, it is an instrument of elite control, emerging oligarchy, and impoverishment of the 99%.

On the other hand, Warren Mosler's 7 truths counter-posed to the 7 frauds, together lead us to an economic ideology that fully supports progressive actions to solve existing problems and to collaborate through the Government to realize the equality of opportunity and the right to a decent life that is very American's birthright.
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Most Recent Customer Reviews
2.0 out of 5 stars Not my kind of book. I am not enough ...
Not my kind of book. I am not enough of an economist to give an opinion, but after reading this book, I never got a warm and fuzzy feeling about the book or the topic. Read more
Published 17 days ago by Dwight
4.0 out of 5 stars We chose this for a book discussion group, and ...
We chose this for a book discussion group, and it led to lively discussion. None of us there was an economist, and so we had lots of questions.
Published 17 days ago by Crumpy
4.0 out of 5 stars Four Stars
It gives an interesting point of view about the economic reality of our time
Published 25 days ago by Amazon Customer
3.0 out of 5 stars Don't know how many times i scratched my head while reading this book
Though never heard of the author before this book, must admit his track record is very respectable. Liked very much that he gave a chronology of his professional life. Read more
Published 1 month ago by Csaba CSIKOS
4.0 out of 5 stars MMT for Dummies
The book is a brilliant and lucid exposition of modern monetary theory. The idea of a government "running out of money" is ludicrous and there are far worse things than deficits. Read more
Published 1 month ago by Adam Alonzi
4.0 out of 5 stars Read a review of his other book. Read the ...
Read a review of his other book. Read the larger book with the most pages. They are the same for the most part.
Published 2 months ago by Anne M. Eustace
2.0 out of 5 stars Two Stars
Fluff, fluff and more fluff
Published 2 months ago by Zapata
5.0 out of 5 stars An alternative but proper view on economics
I gave this book 4 stars since the book is exceptional on so many levels. 

It is always refreshing when you hear new ideas and views opposite from the statements which... Read more
Published 4 months ago by ivor
4.0 out of 5 stars Great explanation of MMT - Writing style could use improvements
First of all I would like to begin with my appraisal for Warren Mosler and his MMT theory. In this book Warren explains reserve accounting with very simple words that can be... Read more
Published 7 months ago by Ioannis Angelos
5.0 out of 5 stars Learn why the George Bush administration felt comfortable lowering...
The concepts are sound and explained clearly. Too bad the GOP agrees with the concepts if they want to lower taxes for the elite earners but not to keep food on the table for the... Read more
Published 7 months ago by E. Alexander
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More About the Author

I have a strong background in finance and fixed income trading,and have been responsible for developing a heterodox school of economics called Modern Monetary Theory (MMT).

Unemployment is totally unnecessary. A hour of unemployment is an hour of productivity lost forever. This should not happen. I would offer a job to everyone who wanted a job with no "ifs and buts".

My financial background is extensive. I was a founder of the III investment companies, which had been the number one ranked fund by MAR in risk adjusted returns for the 10 years previous to when I turned control over to my partners in 1997. I originated the 'mortgage swap' and in 1996 orchestrated the largest futures delivery to date (over $20 billion notional) in Japan. I have developed the only trading interest rate swap futures contract (in operational terms). I say in operational terms because my product and process was to eliminate the risk and lack of transparency of the existing market by having a centralized clearing system.

Since I was a kid I have always loved speed. I love to build and race cars. Those of you from South Florida will know me from making bets with anyone who believed that they had a car that could beat mine. I designed my cars with the simple solution which was to make it lighter. My car has evolved into the MT900 which has been a very successful racing car in Europe.

Today, I spend my time educating people on economics and how monetary and fiscal policy really operates. My background led to a true understanding about what is money, how it is created, about banking and how the Federal Reserve controls interest rates not money supply.

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