Our friend Daniel Conceição is back for his sixth(!) time on Macro N Cheese. He and Steve share their critique of "neutral" or academic MMT that avoids class analysis. Understanding a government's monetary capacity is meaningless without using that knowledge as a weapon for class struggle against an oppressive economic system.

Daniel shares his experiences in Buenos Aires, describing a city with grand public infrastructure (a legacy of Peronism) now filled with poverty due to austerity. He dismantles the myth that President Javier Milei's austerity policies tamed inflation. Instead, he argues the temporary stabilization was due to a massive, supranational bailout from the IMF, not free-market principles. And when we’re talking about the IMF, we’re seeing a tool of economic imperialism. By creating dollar dependency in developing nations, it forces them into debt servitude and structural adjustments that fully serve global capital, never local populations.

This brings us back to mainstream economists who lie outright in order to protect the class interests of banks and the oligarchy. They point to how economic rationalizations shift (e.g., after the 2008 crisis and during the pandemic) to always justify saving capital while opposing spending on the public purpose.

Daniel Conceição is an associate professor at the Institute of Urban and Regional Planning and Research (IPPUR) at the Federal University of Rio de Janeiro (UFRJ), and one of the authors of the book “Modern Monetary Theory: The Key to an Economy at the Service of People”. He is also former president of the Institute of Functional Finance for Development Brasil (https://iffdbrasil.org/)

@stopthelunacy

** Tuesday evening, Bob will join our weekly online gathering where we’ll listen to the podcast together and discuss. Bring your questions for him. September 9 at 8pm ET/5pm PT. Use this link to register: https://us06web.zoom.us/meeting/register/1HA3nd_5QFSFzBe_cGiHpw

This is Bob Hockett’s 12th visit to Macro N Cheese. Back in 2022, in an episode discussing the collapse of the major crypto exchange platform FTX, Bob gave us a useful rule of thumb:

“The irony is that in every one of these cases there is a clue in the name of the product in question that ought to warn you. If it’s called a junk bond, there’s a reason for that word “junk” being used. And if it’s called a subprime mortgage loan... there’s a reason for that “subprime” term. Similarly with cryptocurrency or crypto assets, one of the most ironical names ever conceived for this kind of product. If the word “crypto” comes into it, then that’s a pretty good tip-off that there’s something non-transparent about it, that there’s something opaque and occluded and difficult to understand.”

Hmmm... today’s topic is the GENIUS Act. What meaning should we take from that name?

In this episode, Bob and Steve talk about the newly-passed GENIUS Act whose stated purpose is regulation of the stablecoin industry, bringing the shadow banking industry into the light and out of the, um, shadows.

The discussion looks at the flawed premise of private stablecoins and the real motives behind the push. Far from preventing instability and fraud, promotion of stablecoin aligns with a libertarian ideology (a la Hayek) that seeks to denationalize currency and privatize money. From a Modern Monetary Theory perspective, the implications are alarming. It merits a discussion of the role of the state.

The GENIUS Act is a dangerous distraction. A Trojan Horse.

Robert C. Hockett is the Edward Cornell Professor of Law at Cornell Law School. His principal teaching, research, and writing interests lie in the fields of organizational, financial, and monetary law and economics

His forthcoming and recent books are: World Money (Yale 2026); A Republic of Producers (Yale 2025); Making Capital Democratic (Polity 2025); Spread the Fed (Palgrave 2025); The Citizens' Ledger (Palgrave 2022); Democratizing Finance (Verso 2022); Money from Nothing (Melville House 2020); Financing the Green New Deal (Palgrave 2020).

@rch371 on X

In our 14th episode with Australian economist Bill Mitchell, the conversation focuses on the MMT perspective on international trade. Bill explains what is meant by the statement “imports are a benefit, and exports are a cost,” where it fits into the history of economic thought, and some of its implications.

A significant portion of the conversation is dedicated to explaining the crucial shift from the Bretton Woods fixed exchange rate system to the modern system of floating exchange rates after 1971. Bill clarifies that in a floating regime, a currency-issuing government is not financially constrained in its domestic policy by “trade imbalances,” as it was under Bretton Woods.

The episode also touches on bond vigilantes, the IMF, and the shifting status of the US dollar as the world’s reserve currency.

William Mitchell is Professor of Economics and Director of the Centre of Full Employment and Equity (CofFEE) at the University of Newcastle, NSW Australia. He is also the Docent Professor of Global Political Economy at the University of Helsinki, Finland, and Guest International Professor at Kyoto University, Japan.

Follow Bill’s work, including his upcoming books, at https://billmitchell.org/blog/