Just pondering the logical implications of modern monetary systems, the banking franchise & public credit creation possibilities:

(context recent posts/papers/articles by @NathanTankus, @rohangrey, @MorganRicks1 & others)

Thread Looking past current institutional arrangements to what is logically possible:
- banks don't *need* deposits to underwrite or be solvent
- transaction infrastructure & underwriting services don't need to be combined
- deposits can always be guaranteed at par to US dollars

Part of the lifting of the veil (banking as a public-private money franchise) calls into question the disproportionate allocation of money creation given to banks solely for investments that cash-flow, versus the potential for public investments that serve. There is no reason money creation projects cannot be also delegated to a range of public institutions, with appropriate local & macro controls, to provision social needs: state/muni gov's, education & health institutions, etc.

I may be an outlier here, but I think of deposit "insurance" a bit like social security. By tying federal guarantees of a monetary nature to an insurance product, we further the myth that there must be a finite source of these monies.

Just guarantee the deposits (& SS). I get the desire to allocate the "cost" on banks, but this is effectively a tax that raises the cost of banking. There's no actual "cost" to transferring a dollar deposit from a failing institution to a solvent one.

Seems #MMT is getting attention for a lot of stuff lately, so I wanted to check in to see which MMT-informed policy suggestions have been implemented so far:
- Job Guarantee
- 100% bank deposit guarantee
- ZIRP
- Strict regulation of bank assets
- Improved automatic stabilizers - Target non-essential sectors of the credit channel for demand management
- Raise rates on investment income (div/cap gains, etc)
- Increase progressive rate structure & increase influence of property taxes over W-2 income taxes
- End payroll taxes
- Rethink/end corporate taxes

How do you react to the metaphor "running the printing presses"? Most probably have a -ve emotional response triggering inflation fears. But one could just as easily picture a +ve image of a utility running pumps to supply needed water to society. patrioticmillionaires.org/2017/07/25/lik… Saying we shouldn’t deploy the currency (run the press) to meet public needs is like saying the utility shouldn’t run the pumps to supply water, or the military shouldn’t be fully deployed to defeat an invasion. It’s what it is designed to do.