Friday, January 13, 2017

Tavis Smiley Show

This email is in reference to the January 13, 2017 interview aired on the Tavis Smiley Show.

Richard Haass should be challenged about US debt. The more dollars the Fed creates from thin air, the stronger the dollar gets. Neoliberal economics fails to predict observed data. We must challenge the idea that neoliberal, standard, orthodox, mainstream, establishment economics has anything to tell us about public policy. Haass fears debt because of foreign central bankers, but better than fear is to cooperate, as the world central bank unlimited currency swap network demonstrates. (See http://www.cfr.org/international-finance/central-bank-currency-swaps-since-financial-crisis/p36419#!/ for information on the unlimited world central bank swap network.)

The Fed demonstrated unlimited liquidity in 2008 and after (see http://subbot.org/misc/txt/fedunlimited.txt); we should use the Fed's unlimited liquidity to establish a basic income, at zero taxpayer cost on the Fed's balance sheet. Indexation (see https://www.reddit.com/r/BasicIncome/comments/56fpzu/indexation_as_the_solution_to_inflation_fed/) fixes inflation. The central bank swap network puts a floor on exchange rate risk.

Neoliberal economics is normative and assumes a crass, simplistic utility function so that market efficiencies can be mathematically proved. But I am not constrained by the mathematically-convenient constraints imposed on preference relations; my choices can be intransitive, for example. Indeed major market players such as advertising firms manipulate choice preferences to violate transitivity by selling inferior products at higher prices. Hedging violates transitivity by betting that A will go up and down at the same time. The private sector creates, by Bain & Company's estimate (see http://www.bain.com/publications/articles/a-world-awash-in-money.aspx), $30 trillion a year on average. The scale of private sector money creation is something Haass and neoliberal economics ignores. We can easily create $10 trillion per year, or however much it takes, to fund a worldwide basic income to empower individuals worldwide to self-realize.