I think my major problem with Mosler’s theories is that there are two sets of rules. The second set only applies to the the issuer of the fiat currency. It is not applicable to, for example, New York State, or Dutchess County, or the Town of Beekman, or the Arlington Central School District. Because money is not really an issue for the owner of the mint, some policy options are available to the Federal government which are not available to more local governments. More power is available to the Federal government which is not available to local governments. This is a problem if you think, as I do, that certain functions are forbidden the Federal government. This is a problem if you think, as I do, that certain functions are best performed locally.
Suppose, for example, that you are in favor of providing a free education to all citizens. If the town pays for it, then the town will need to float a bond issue, or raise taxes, or otherwise find the funds to provide the education. If the Federal government pays for it, then money’s not an issue.
If the Federal government pays for it, then control is not likely to be local.
It’s simpler if there’s just one set of rules.