I’d say this sort of ouroboros-esque argumentation that MMT proponents throw out arguing that people who disagree simply “don’t get it” and need to “read MMT theory” to “enlighten” themselves on the “logical” nature of it is certainly one aspect that propels me to the skeptic position towards the pitch. I have indeed read Hudson and actually I went out of my way to search for his ex cathedra comments about it. He seems personally supportive, from what I gather, and if so, you could ring that up as a right-hand constituent of his 70%/30%. Given his anti-Stalinist asides, I’m satisfied with having some disagreements with him.

His assessment of the global subsidization of US dollar hegemony shows that no currency is an island and this is something maintained by geopolitical coercion. This is the primary contradiction that makes a Gordian knot of any US currency sovereigntist schemes like MMT and the overall condition of US dollar hegemony. As it turns out, dollar hegemony is turning out to be a two way street turned single-way only by the traffic cop’s gun, and the implementation of domestic MMT-derived monetary policies will press upon further necessity for the US state to preserve the external status quo and coerce its involuntary creditors to further subsidize the American “monetary sovereignty.” To assert otherwise, that one can print as much as they want for the domestic market without external spillover is rather laughable as it maintains idealism over the materialist outlook, as this scheme under other names has taken place before. Reaganomics at home to rescue the domestic economy was ultimately paid by those economies abroad, to disastrous consequence for the likes of Japan.

However, the technical feasibility of MMT is secondary to my rejection of the pitch. It is, in plain terms, it is a new FDR style New Deal. Appetizing for your progressive liberals and your social democrats, but something entirely objectionable as a ML. It is to put a lipstick on a pig and to, once again, claim that an ever more perfect capitalism is preferable than socialism, suppressing the latter through material financial appeasement. This is why MMT proponents range from Trots like Hudson all the way to mainstream US economists like Kelton. The etiological base of support for an economic policy, the people that proponents stand beside and their fellow travelers says rather a lot. As for Marxists, I recommend reading “Modern Monetary Theory: A Marxist Critique.”

How MMT compares contra to neoclassical slop is something I care not for, as to that end, why not go one more step and compare how superior MMT is to feudal monetary economics or the currency price controls of Diocletian in the 4th century? How non-Marxist economics incestuously iterates upon itself to spit out its newest take is immaterial and in that sense, MMT is plainly the new rendition of Keynesianism, meant to plagiarize socialist theory to plaster onto a model of a “reformed, more humane and egalitarian” capitalism. Socialism is the alternative to which MMT must be compared to and in such a comparison, it’s the two century old Proudhon argument dusted off and brought out from the museum display: that the only real problem with capitalism is the monetary dynamics.

One thing I will concede is that I have no doubt that if exigent pressures, similar to that during the post-Depression era, were to resurface, this MMT would absolutely be very likely enacted as a concession to curb the winds of support for socialism. It would follow in those footsteps of FDR just as the New Deal followed that of Wilson’s “every American a homeowner” concession to sabotage the SPA of Eugene Debs.

Dollar hegemony, on the other hand, works by it being a global reserve currency that foreign central banks who have accumulated dollars from their exports have nowhere else to spend the dollars, so they have to buy US treasuries as savings (to earn a small % of interests). In other words, US treasuries serve as a “sink” to recycle spent dollars back to US shores, allowing the US to spend an unlimited amount of money overseas.

But they have to pay interest, so its not really unlimited money