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Soft Currency Economics II (MMT - Modern Monetary Theory Book 1) by [Mosler, Warren]
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Soft Currency Economics II (MMT - Modern Monetary Theory Book 1) Kindle Edition

3.9 out of 5 stars 33 customer reviews

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Length: 95 pages Word Wise: Enabled Enhanced Typesetting: Enabled
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Product Details

  • File Size: 513 KB
  • Print Length: 95 pages
  • Simultaneous Device Usage: Unlimited
  • Publication Date: October 25, 2012
  • Sold by: Amazon Digital Services LLC
  • Language: English
  • ASIN: B009XDGZLI
  • Text-to-Speech: Enabled
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  • Word Wise: Enabled
  • Lending: Not Enabled
  • Enhanced Typesetting: Enabled
  • Amazon Best Sellers Rank: #141,388 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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Warren Mosler presents yet again the clearest case for an overhaul of the economic discussion happening our political system. In a clear, straight forward, Mr. Mosler lays out how the monetary operations of our nation work and why the fear mongering of debt and deficits is misplaced. This book shines a light on the terrifying level of ignorance of our policy makers and media.
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This short work is extremely clearly and simply written. It is a brilliant synthesis of a number of strands of economic thought, making it the first work developing the Modern Monetary Theory (MT) approach to economics. It tells the truth about fiat currencies and how they work, and provides much clear insight into the workings of the banking system and the relationships between the Fed and the Treasury. If you're interested in macroeconomics and in the Modern Monetary Theory approach to it, then you must read this book. There are others that are also essential, including the author's The Seven Deadly Innocent Frauds, and also important works by Professors L. Randall Wray, and Bill Mitchell. But this updated version of the original Soft Currency Economics is a place to start opening your eyes to an approach to economics that can free the United States from the bonds of austerity in fiscal policy, and allow us to create a Green New Deal for America.
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Almost all mainstream economists proved themselves totally useless at forecasting the Global Financial Crisis (GFC). Then they have the hide to talk about how we need government austerity even at the same time as the private sector is deleveraging or increasing it's savings. You hear them talk about how the government has to balance its books like a household. You have heard them talk about how inflation will be out of control because of government spending.

Why on earth would you believe people who have proven themselves wrong time and again? You know the definition of insanity is doing the same thing over and over but expecting different results.

That's why you have to read "Soft Currency Economics". It's about real central banking and fiat currencies like the US dollar and GB Pound. It explains why the US is not like Greece and once you read it you realise taht half those mainstream economists hae no idea what they are talking about, or worse still, they are just ideological spruikers who have some special interest group at heart, and not Joe Main-Street.

I am very pleased to have read this book and while the contents initially seem unbelieveable, you realise that they are more accurate than nearly all those mainstream economists.
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I gave this book five stars because this book is needed by any non-specialist who wants to understand monetary policy. Finance, and economics more generally, have been interests of mine for decades and I consider myself a very knowledgeable non-specialist. I've learned things from Mosler and other proponents of MMT that are much different than the dominant Keynesian or monetarist economics. Even if you finish the book unconvinced about MMT, you will still have to struggle with his ideas to understand why you don't accept them. If you enjoy exercising your brain, this book will give you a workout.

An understanding of economics is needed by anyone who wants to understand what the politicians. bureaucrats, and Federal Reserve mandarins are doing to them (not for them), and Americans are woefully ignorant of economics. Monetary policy is probably the most important, but least understood part of American economics, but it doesn't need to be that way.

I suggest that you consider this book as a self-defense course for protecting your financial interests from those who pretend to have your best interests at heart. If you think that my dumping on the financial establishment is unjustified, explain how the financial mess that we've had since 2008 could have occurred unless the people who were charged with managing the economy (i.e.,the Federal Reserve and US Treasury) were fools and/or knaves. Could the mess have happened if knowledgeable, intelligent, and sincere people were doing the job?
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In the sad state of affairs that is our current discourse on the ways to help the American economy, there are two main camps - the deficit hawks and the deficit doves. Both agree that deficits are somehow "bad" - they only disagree about the ways and timeframes of reducing those deficits. The truth is, the deficits are not inherently good or bad, although for a normally functioning modern economy they are actually necessary (with the size being "right" - more on that in the book).
To think that the deficits are inherently "bad" is like thinking that pressing on the gas more than on the brake while driving a car is inherently "bad" - yet we all know this is nonsense. Deficit by definition is the difference (in $) between what the government takes out of the non-government sector (mostly by taxing it) and what it injects into the non-govt sector (mostly by spending). In normal modern economies, the non-govt sector has a net desire to save dollars, and as a whole it can achieve that only if the government accommodates with a deficit - this is true simply by accounting identity. Just like a car most of the time can only more forward when you press on the gas more than on the brake, so is our economy most of the time moves forward only when the govt is running a deficit. Sometimes the deficit needs to be larger - like when going up a hill, and sometimes (though rarely) smaller or even a surplus - when going downhill or trying to stop.
This is a short analogy to the view of economy popularized by the economic school of thought called MMT (Modern Monetary Theory) of which Warren Mosler is the godfather.
Read his book to understand much better the world about you.
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