- 07 Jul 2019 09:41
#15016455
What can a new fiscal Eurozone “Authority” do to let the eurozone take advantage of MMT?
If the EZ or EU decided to take advantage of the power that MMT gives, it could do these things.
1] It (the new fiscal Eurozone “Authority” ) would start taxing something. It would impose the rules on Germany and make it pay what it owes for all the years it broke the rules. This is to punish Germany for exporting too much for many years. Just because Germany didn't voluntarily pay and nobody made it pay isn't a reason they don't now owe it. The rules are the rules after all. This would be one “tax”, a “too much exports tax”.
2] It would set up a Job Guarantee program.
3] It would insurer all bank deposits in all the eurozone nations, think FDIC. It may have to regulate the banks.
4] It should buy half of all bonds sold by each nation to deficit spend and lock them away for 500 years. Half is my initial estimate of how much, adjust this up or down equally for all the nations.
5] It would have to guarantee that all national bonds will be paid on time. And find a way to “punish” the Gov. and elite of nations that can't pay on time for the half of the bonds they have to pay back when they come due. It is, after all, the elite's fault and not the poor's fault.
6] It would take over all the national Soc. Sec. retirement programs and guarantee to always pay that bill.
7] It would sell its own bonds to pay for any deficit in its own S.S. program, JG program, FDIC program, etc.
YES, I know it is a *total* waste of time to even think about this program.
If the EZ or EU decided to take advantage of the power that MMT gives, it could do these things.
1] It (the new fiscal Eurozone “Authority” ) would start taxing something. It would impose the rules on Germany and make it pay what it owes for all the years it broke the rules. This is to punish Germany for exporting too much for many years. Just because Germany didn't voluntarily pay and nobody made it pay isn't a reason they don't now owe it. The rules are the rules after all. This would be one “tax”, a “too much exports tax”.
2] It would set up a Job Guarantee program.
3] It would insurer all bank deposits in all the eurozone nations, think FDIC. It may have to regulate the banks.
4] It should buy half of all bonds sold by each nation to deficit spend and lock them away for 500 years. Half is my initial estimate of how much, adjust this up or down equally for all the nations.
5] It would have to guarantee that all national bonds will be paid on time. And find a way to “punish” the Gov. and elite of nations that can't pay on time for the half of the bonds they have to pay back when they come due. It is, after all, the elite's fault and not the poor's fault.
6] It would take over all the national Soc. Sec. retirement programs and guarantee to always pay that bill.
7] It would sell its own bonds to pay for any deficit in its own S.S. program, JG program, FDIC program, etc.
YES, I know it is a *total* waste of time to even think about this program.
- By Rancid
- By Tainari88
- By wat0n