A South American Currency Union? with Daniel Conceição

Recent episodes of this podcast have looked at the many ways in which the US attempts to maintain global hegemony through the deep state, the banking system, NATO, and the unholy trinity of the IMF, WTO, and World Bank.

This week, Steve talks with Daniel Conceição about the possibility of a supranational currency for Brazil and Argentina. Daniel points out some potential benefits, but it’s hard to avoid comparisons to the Eurozone and the crippling loss of monetary sovereignty. Nevertheless , if successful, such an agreement has far-reaching implications not only for these two nations but potentially throughout all of Latin America, helping promote greater economic integration while providing increased stability.

Steve and Daniel revisit the issue of the petrodollar. Traditional MMT wisdom would say it’s no big deal; it’s merely a numeraire. Daniel suggests there’s more to it, “because when we claim that taxes are the main driver of currency acceptability, what we really mean is that necessity is the main driver.” Just as taxes put us in need of the currency,

“...in the exact same way, if there's a commodity that is hugely needed for your economy to function—everyone needs to purchase it—and if that commodity is only purchasable in a particular currency, then it also necessarily will give acceptability to that currency.”

The episode considers the accuracy of books such as ‘’Confessions of an Economic Hitman.” Daniel points out that mainstream economics is a tool to preserve the interests of the ruling class both domestically and internationally. It’s a mistake to think the economic hitmen are working to secure American interests. Just as we’ve heard from Aaron Good, Michael Hudson, Clara Mattei, and other guests, it’s not a case of country against country, but of a ruling class working against the interests of everyone else.

Daniel Negreiros Conceição did his undergraduate studies in Economics at the Federal University of Rio de Janeiro in Brazil and his postgraduate studies at UMKC (under Professors Wray, Kelton, et al). He is a professor of macroeconomics and public finance at the Federal University of Rio de Janeiro. He helped create the Institute for Functional Finance and Development (iffdbrasil.org), where he currently serves as president, and he helps run the Brazilian Modern Money Network (https://mmtbrasil.com/) aimed at producing more easily accessible material for teaching MMT to the wider public.

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