The True Roots of Money & Banking and How to Pull Off a Modern Debt Jubilee by Ellen Brown

cancel the debt

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by Ellen Brown
Writer, Dandelion Salad
The Web of Debt Blog
September 1, 2019

We are again reaching the point in the business cycle known as “peak debt,” when debts have compounded to the point that their cumulative total cannot be paid. Student debt, credit card debt, auto loans, business debt and sovereign debt are all higher than they have ever been. As economist Michael Hudson writes in his provocative 2018 book, “…and forgive them their debts,” debts that can’t be paid won’t be paid. The question, he says, is how they won’t be paid.

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How to Pay for It All by Ellen Brown

For All Debts...

Image by AK Rockefeller via Flickr

by Ellen Brown
Writer, Dandelion Salad
The Web of Debt Blog
July 10, 2019

The Democratic Party has clearly swung to the progressive left, with candidates in the first round of presidential debates coming up with one program after another to help the poor, the disadvantaged and the struggling middle class. Proposals ranged from a Universal Basic Income to Medicare for All to a Green New Deal to student debt forgiveness and free college tuition. The problem, as Stuart Varney observed on FOX Business, was that no one had a viable way to pay for it all without raising taxes or taking from other programs, a hard sell to voters. If robbing Peter to pay Paul is the only alternative, the proposals will go the way of Trump’s trillion dollar infrastructure bill for lack of funding.

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The Bankers’ “Power Revolution”: How the Government Got Shackled by Debt + New Book: Banking on the People by Ellen Brown

The Bankers’ "Power Revolution": How the Government Got Shackled by Debt + New Book: Banking on the People by Ellen Brown

Screenshot by Dandelion Salad via Flickr

by Ellen Brown
Writer, Dandelion Salad
The Web of Debt Blog, May 31, 2019
June 2, 2019

This article is excerpted from my new book Banking on the People: Democratizing Money in the Digital Age, available in paperback June 1.

The U.S. federal debt has more than doubled since the 2008 financial crisis, shooting up from $9.4 trillion in mid-2008 to over $22 trillion in April 2019. The debt is never paid off. The government just keeps paying the interest on it, and interest rates are rising.

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Debate on Modern Monetary Theory (MMT) Parts 1-4 (updated)

For All Debts...

Image by AK Rockefeller via Flickr

Dandelion Salad

Updated: May 13, 2019

Modern Monetary Theory – A Debate: Randall Wray (Pt 1/4)

TheRealNews on Apr 22, 2019

Randall Wray, one of the founders of the economic theory known as Modern Monetary Theory (MMT) lays out some of its main arguments. Paul Jay hosts

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Funding A US Green New Deal Without Raising Taxes by Ellen Brown

Green New Deal

Image by Bart Everson via Flickr

by Ellen Brown
Writer, Dandelion Salad
The Web of Debt Blog
March 21, 2019

As alarm bells sound over the advancing destruction of the environment, a variety of Green New Deal proposals have appeared in the US and Europe, along with some interesting academic debates about how to fund them. Monetary policy, normally relegated to obscure academic tomes and bureaucratic meetings behind closed doors, has suddenly taken center stage.

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The Problem of Debt Deflation by Ellen Brown

Indentured Student - Cartoon

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by Ellen Brown
Writer, Dandelion Salad
The Web of Debt Blog, Feb. 21, 2019
February 24, 2019

“Quantitative easing” was supposed to be an emergency measure. The Federal Reserve “eased” shrinkage in the money supply due to the 2008-09 credit crisis by pumping out trillions of dollars in new bank reserves. After the crisis, the presumption was that the Fed would “normalize” conditions by sopping up the excess reserves through “quantitative tightening” (QT) – raising interest rates and selling the securities it had bought with new reserves back into the market.

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The Venezuelan Myth by Ellen Brown

Hugo Chávez saludando al pueblo

Image by Globovisión via Flickr

by Ellen Brown
Writer, Dandelion Salad
The Web of Debt Blog
February 10, 2019

Modern Monetary Theory (MMT) is getting significant media attention these days, after Alexandria Ocasio-Cortez said in an interview that it should “be a larger part of our conversation” when it comes to funding the Green New Deal. According to MMT, the government can spend what it needs without worrying about deficits. MMT expert and Bernie Sanders advisor Prof. Stephanie Kelton says the government actually creates money when it spends. The real limit on spending is not an artificially imposed debt ceiling but a lack of labor and materials to do the work, leading to generalized price inflation. Only when that real ceiling is hit does the money need to be taxed back, and then not to fund government spending but to shrink the money supply in an economy that has run out of resources to put the extra money to work.

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“Taxpayer Money” Threatens Medicare-for-All (And Every Other Social Program) by Jim Kavanagh

HealthOverProfit-First-Shot-20180409_224859

Image by Backbone Campaign via Flickr

Dandelion Salad

by Jim Kavanagh
The Polemicist, Sept. 18, 2018
September 20, 2018

Three assertions:

  • There is no such thing as “taxpayer money.”
  • Taxes do not pay for government spending. (Nor does debt. No revenue is needed.)
  • Leftists who continue to talk as if “taxpayer dollars” must be collected to “pay for” government programs are undermining Medicare-for-all and every other progressive policy initiative.

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The Life and Times of Michael Hudson: From Trotsky’s Godson to Modern Monetary Theory

Capitalism Kills

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by Michael Hudson
Writer, Dandelion Salad
August 11, 2018

Global University for Sustainability on Jul 11, 2018

The interview with Professor Michael Hudson was conducted on 7 May 2018 in Beijing, by Professor Lau Kin Chi and Professor Sit Tsui Jade. Professor Hudson talked about his formative years, and his turn to economics from music as he found his mentor Terence McCarthy’s speech about economics beautiful and aesthetic. He recalled his experiences in research and teaching, and the background leading to his writing the many books on imperialism, balance of payment, history of debt, and fictitious capital. The interview was edited by George Lee, and produced by the Global University for Sustainability, July 2018.

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Michael Hudson, Stephanie Kelton, et al: Why Monetary Theory and Policy Is a Critical Terrain For the Left (Left Forum 2018)

Smash Capitalism!

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with Michael Hudson
Writer, Dandelion Salad
June 7, 2018

OpenUnivoftheLeft on June 5, 2018

Left Forum 2018: As our demands grow bolder—true full employment, the rebuilding of the social safety net starting with Medicare for All, an overdue green and just transition—so will the naysayers’ inevitable refrain: “How will you pay for it?” Developments in our understanding of monetary theory and the money system has, thankfully, illuminated a path forward out of the trap of austerity: when we understand how money actually works, we know that the obstacles to bold action at a national scale on jobs, healthcare, and climate are political, not economic.

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Deconstructing the State: Getting Small, Part 6 by Arthur D. Robbins

by Arthur D. Robbins
Writer, Dandelion Salad
Paradise Lost, Paradise Regained
May 9, 2017

War has indeed become perpetual and peace no longer even a fleeting wish nor a distant memory. We have become habituated to the rumblings of war and the steady drum beat of propaganda about war’s necessity and the noble motives that inspire it. We will close hospitals. We will close schools. We will close libraries and museums. We will sell off our parklands and water supply. People will sleep on the streets and go hungry. The war machine will go on.

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Ellen Brown: Breaking Through the Money Power

For All Debts...

Image by AK Rockefeller via Flickr

with Ellen Brown
Writer, Dandelion Salad
The Web of Debt Blog
September 30, 2016

“Commercial banks create money, in the form of bank deposits, by making new loans… 97% of the [money] currently in circulation [is] created by commercial banks themselves.”

— “Money creation in the modern economy”, Quarterly Bulletin, 2014 Q1, Bank of England

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Overt Money Financing: Raining Money on Main Street by Ellen Brown

For All Debts...

Image by AK Rockefeller via Flickr

by Ellen Brown
Writer, Dandelion Salad
The Web of Debt Blog
September 22, 2015

Predictions are that we will soon be seeing the “nuclear option” — central bank-created money injected directly into the real economy. All other options having failed, governments will be reduced to issuing money outright to cover budget deficits. So warns a September 18 article on ZeroHedge titled “It Begins: Australia’s Largest Investment Bank Just Said ‘Helicopter Money’ Is 12-18 Months Away.”

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After 100 Years, It’s Time to Make the Federal Reserve a Public Utility by Ellen Brown

Federal Reserve Building in Washington D.C. - Illustration

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by Ellen Brown
Writer, Dandelion Salad
The Web of Debt Blog
December 22, 2013

December 23rd, 2013, marks the 100th anniversary of the Federal Reserve, warranting a review of its performance. Has it achieved the purposes for which it was designed?

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How Congress Could Fix Its Budget Woes, Permanently by Ellen Brown

Defeat Capitalism!

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by Ellen Brown
Featured Writer
Dandelion Salad
webofdebt.com
February 13, 2013

As Congress struggles through one budget crisis after another, it is becoming increasingly evident that austerity doesn’t work. We cannot possibly pay off a $16 trillion debt by tightening our belts, slashing public services, and raising taxes. Historically, when the deficit has been reduced, the money supply has been reduced along with it, throwing the economy into recession. After a thorough analysis of statistics from dozens of countries forced to apply austerity plans by the World Bank and IMF, former World Bank chief economist Joseph Stiglitz called austerity plans a “suicide pact.”

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