It’s a Mixed Credit-Fiat World

This is very technical, but it reveals that the basic story of how our economy works is “absurdly false”, offering “proof that Modern Monetary Theory’s analysis of government money creation is derived from a correct application of the rules of accounting, and is therefore better called ‘Modern Monetary Fact’”. This re-storying also offers an understanding of our frequent economic crises and what drives them: it is the reduction of government debt and accompanying increase in private debt that drives crises, not the other way around. Of course some people take profitable advantage of this delusion, which might explain its persistence. Hear more about this, and the history of the errors that led to the absurdity, here.