Thread by @dilgreen

@matslats this podcast clarifies for me some parallels between #MMT thinking and #MutualCredit. I think it may give us some clues as to direction in market making.
Mostly relates to #MonetarySovereignty
1/n

https://twitter.com/GowerInitiative/status/1114655386785714176

Defn is spelled out for a country that has #MonetarySovereignty:
1/ issues own currency
2/ takes taxe, fees etc in own currency
3/ only issues debt denominated in own currency
4/ attempts stable exchange rate wrt other stable currencies.
2/n

Primary causes of loss of #MonetarySovereignty :
1/energy deficits
2/lack of self sufficiency in food
3/imports high added value goods
4/exports low added value goods.
3/n

So, considering a #MutualCredit network as desiring to have the attributes of #MonetarySovereignty to sustain its economic meaning for its members (it is a mutual only for the purpose of trading via its currency, not a nation state), then we should look at these issues.
4/n

So let's look at them through a #MutualCredit lens.
1/ Issues own currency: yes,
2/Takes fees in own currency: implies no fiat charges (membership or fees)
3/ issues debt only in own currency: if investment is taken, should be redeemed credit obligations, not fiat
5/n

So far, so obvious,
but I think it gets more interesting. 4/ stable exchange rate: important consideration for credit commons federated networks - beyond me right now.
Next, the issues that undermine sovereignty.
1/energy deficits: hard. Implies early determined push for...
6/n

.. self sufficiency, which is interesting, as it suggests a strong mechanism for connecting neighbourhood groups: local energy generation.
7/n

Next issue: 2/ Lack of self-sufficiency in food. Clearly, one hoped-for outcome of federated MC networks is that, while long supply chains will be possible, they will not encourage wage slavery. Networks may compete on price, but not on exploitation. Thus local food growing..
8/n

.. should be encouraged. This should also be supported intentionally through a push towards bio-regional networks as key early focus.
3/ Import of high added value,goods, and 4/ Export of low added value goods are taken together.
Obvs these benefit from same arg as food ...
9/n

.. but this is obviously a huge problem issue in the early years of an MC network. 99% the high-value stuff is made in giant factories, which will be outside the network. While obvs there will need to be a push ( as with energy) for local neighbourhoods and other groups to..
10/n

.. build new co-ops, this will be hard and slow- and all the while network members will be needing to find fiat to buy processed / manufactured goods into the network- sapping the value of membership.
We need need to take this very seriously- It cannot be left to chance.
11/n

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