U.S. critics of Modern Monetary Theory who point to Venezuela’s hyperinflation are missing the big difference between the two countries.
Ideology: A set of assumptions so appealing that one looks at their abstract logic rather than how the world actually works. (See Insanity.)
"It seems unlikely," anthropologist and author David Graeber writes. "After all, as I and many others have long argued, austerity was never really an economic policy: ultimately, it was always about morality."
Leaving the gold standard in 1971 meant the U.S. was free to manage its money supply to prevent deflation and "truly damaging levels of inflation." But mainstream economists, led by the free-market Chicago School, have ignored this fact, leaving the public's fate to the caprices of markets for decades.
Money today is simply a legal agreement between parties. Nothing backs it but “the full faith and credit of the United States.” The United States could issue its credit directly to fund its own budget, just as our forebears did in the American colonies and as Abraham Lincoln did in the Civil War.
Independent cities run entirely by the business class? They're in the making in Honduras, where President Porfirio Lobo Sosa has proposed the creation of autonomous, nondemocratic, privatized metropolises, or "Ayn-Randias," as University of Missouri-Kansas City economist William Black calls them.