Predatory Lending and the Predator State

NB: This post is part of the “Piercing the Monetary Veil” symposium. Other contributions can be found here.

Raul Carrillo–

Like most advocates of Modern Monetary Theory (MMT), I didn’t embrace the paradigm because I dig late-night chats about accounting identities. Rather, I found it while pursuing economic justice (following the lead of Angela Harris, Emma Coleman Jordan, and other allies). Today, I fight financial predators — banks, landlords, debt collectors, and agencies engaged in racialized wealth extraction — on the daily. And so, my MMT enthusiasm remains…practical.

Although the commentariat caricatures MMT as a rationalization for U.S. deficit spending, it’s something more powerful — a new interdisciplinary lens, shaped for eyes on the prize of justice. Most importantly, MMT is rooted in legal analysis; its neochartalist foundations help illuminate financial hierarchies — so we can better dismantle them around the world.

As elites literally claim human survival is “too expensive”, it’s crucial for movements to absorb this symposium’s chief insight: money itself, although not always starkly a creature of the “state”, is a creature of law, just like the institutions through which it flows.

When we analyze money as public software, rather than private hardware, we see political economy differently. For example, as Harris argues, any movement for economic justice must overcome the toxic trope of the “undeserving benefit recipient” (and the corollary trope of the put-upon khaki-clad patriarch). In my view, MMT helps us challenge this divide-and-conquer strategy, by undermining the technical premises of “taxpayer citizenship” — the racialized and gendered notion that rights should correspond to one’s nominal contributions to government coffers. When Stephanie Kelton reminds us that “money doesn’t grow on rich people”, she is making an inference LPE readers should appreciate: the wealthy do not get their money by generating it, but by mastering a system that routes tradeable legal claims on real resources that we collectively produce (i.e. “money”) to themselves. As I’ve emphasized, the coercion Robert Lee Hale described leads the rest of us not merely to work, but to work for legal tender, which can settle debts between individuals, but must satisfy debts to the state (most notably, taxes).

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Modern Money and Historical Trauma

Angela Harris –

In September of 2017, I attended the First International Conference of Modern Monetary Theory (MMT) at the University of Missouri, Kansas City. Subtitled “Economics for a New Progressive Era,” the conference displaced the university’s annual Post-Keynesian Conference, signaling a growing enthusiasm for MMT among academics, advocates, students, and regular people. Reporters from Bloomberg and the Wall Street Journal were in attendance as twenty-seven panels and several keynotes covered topics from “Stock Flow, Consistent Models, Finance, and Growth” to “MMT in the Streets: Grassroots Organizing and Mass Mobilization.”

Image result for taylor mac

Taylor Mac

I got home from Kansas City in time to catch the last half of the third chapter of the “24 Decade History of Popular Music,” a “radical faerie realness ritual” presented by the drag artist Taylor Mac. Two hundred and forty-six songs long, and covering the history of the United States from 1776 to the present, the work was performed without a break for twenty-four hours in New York last October. I saw it at the Curran Theater in San Francisco, where it was presented in four six-hour blocks (with no intermissions) over the course of two weekends. I was fortunate enough to be there for three and a half of those blocks: twenty hours of dazzling, fabulous costumes; music from a slowly dwindling band (one musician departing every hour until only Mac remained); burlesque dance; “The Mikado” performed with the characters as Martians; and historical events reenacted through audience participation, from the Civil War (we threw ping-pong balls at each other), to the Cold War (two giant inflatable penises, one stamped with a Russian flag and the other an American flag, bounced from the balcony down to the orchestra and eventually ejaculated white ribbons on the crowd).

What do PowerPoints in Kansas City have to do with rubber breasts, high heels, and glitter in San Francisco? For me, the answer is white supremacy.

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