The point of the original piece — which I’m not yet convinced by, and need someone to explain why I shouldn’t be — is that there is a potential alternative source of money other than taxation.
Art Nouveau said that “government printing physical money leads to inflation, and then hyperinflation”. First, the Positive Money piece implied that non-physical / “electronic” money was also a potential source, that there was a lot more of that than physical money, and that the private banks were doing that all the time on a massive scale.
Second, isn’t that exactly what the government / BoE did with Quantitative Easing – except they channeled it all into the financial sector. Why hasn’t that produced inflation? Or is it just a matter of time before we get it, and hyperinflation?!
