OK, Varoufakis’ new book is

November 1, 2017 at 3:25 pm #87037

Moderator

OK, Varoufakis' new book is very much a primer, he steers clear of theoretical detail:[Varoufakis]Let us recall how this magical power of bankers to create money and the overall demands of a market society generate an urgent need for public debt […] that provides bankers with their 'most liquid of assetts'[/quote] He then argues that tax rates, public debt and private debt are dependent variables based on this money supply. The public debt is there to hold things together when the bankers get carried away.As he notes, though

Varoufakis wrote:

In bad times, when bankers pick up the phone to the government and demand that thestate's central bank bail them out, it does so not just by creating new money […] but also by issuing more bonds and using them to borrow more money from otehr bankers, often froeign ones, to pass on to the local bankers.

Much of his new book is about keynsian animal spirits, very little Marxism. Ultimately, beneath his astonishment that banks 'magic money out of thin air' is the fact that the central bank exists and regulates the whole process: the state creates money.