"Fiat currency" was first created by the Chinese Empire - the first "paper currency" was by the Chinese. The value was enforced by the military imposing taxes. Nothing has changed. The US Petrodollar is enforced by the US military empire with over 800 bases in other countries. So considering that Noam Chomsky is the leading critic of the US military corporate-state empire then I don't think he supports a fiat currency.
The FED has anywhere from $2 to $7 trillion on its assets which are then invested back into US treasuries but since US debt is so huge now to finance military spending then the FED can not afford to increase interest rates on payments as loans to the US government. "Decreasing the supply of Treasuries makes the remaining bonds more valuable. These higher-value Treasuries don't have to pay as much in interest to get buyers, and this lower yield drives down interest rates on the U.S. debt." So there is a direct relation of the FED assets to US treasury bonds interest rates. In other words the greater surplus that the US government extracts from military "investments" for corporate tax profits then the less value the FED has in assets.
Because of the rapidly declining rate of return on US imperial "investments" through the military PetroDollar therefore the value of the FED keeps increasing. The real issue is that the US Empire can no longer extract "primitive accumulation" since the ecological crisis is now so bad. So Chomsky's focus is on the immediate future of life on Earth via nuclear weapons spiraling out of control and abrupt global warming. These issues are an existential crisis requiring the overthrow of the US military spending.
The "fiat currency" could be invested in real productive investment but it depends on how assets are priced. So, for example a farm can use Accrual Accounting based on production as assets even though income as cash is not generated. People can not eat money but starvation is not due to lack of food, rather due to the concentrated control of distribution of food.
Cargill, the world's largest private corporation, uses food as a weapon more important than oil. If a country's local farmers can be wiped out then they are dependent on the US by "food dumping" that drives down the local farmer food market price. Cargill has done this in over 100 countries around the world. For example in the Amazon rainforest Cargill built ILLEGAL soybean storage elevators and then soybeans became "hard currency" since farmers could sell an unlimited amount to Cargill.
The soybeans are then exported to China and Europe so that pigs and chicken can be fed. The environmental cost of converting the world's most valuable ecology for fresh water and oxygen and medicine - into a pesticide genetic engineered destruction of the land as fake food - that is all just an externality not "priced" into the real economy. Similarly GDP goes up through destructive wars since the economy then has to be rebuilt.
So as an opposite example consider the North Dakota state public bank. It was created despite the fierce opposition from the banking elite. So then the farmers could not repay their loans due to drought and lack of demand. So the bank instead of foreclosing on the property just erased the financial debt and then refinanced the farm mortgages at currently land values once the farmers could began paying interest again.
This is based on the truth that land is a monopoly and so the asset price will keep going up - in contrast to the lie that commercial real estate can deduct bank interest as building depreciation and then assuming the value of the buildings will keep increasing (not the land).
https://michael-hudson.com/2004/06/saving-asset-price-inflation-and-debt-induced-deflation/
Tax rates on capital gains have been slashed below those on “earned” wages and profits, whereas the two rates were equal when America’s income-tax laws first were introduced.
But if the building is sold, and the sales price is higher than the depreciated value, the increase is treated as a capital gain to be taxed. When the property is sold, the taxes deducted as depreciation must be recaptured (paid back)—if it sells for more than its depreciated value.
The amount of profit subject to depreciation recapture is limited to the sum of depreciation deductions you took. Any profit above the depreciated amount is taxed at the more-favorable capital gains rate.
beyond bleak. The East Siberian Arctic Shelf methane bomb has officially been triggered. Most people have no idea what that is or what it means. Essentially the Arctic ice is melting very fast and the methane levels are huge, accelerating in their release. So that within five years it's probable that global warming will have doubled and it will be too hot to grow food at scale. With the collapse of civilization then nuclear power plants will most likely fail as with Fukushima - over 450 of them. http://arctic-news.blogspot.com is a good source for this. I knew we were doomed by 1996 so I trained with a Chinese spiritual Daoist yoga meditation master who went 49 days with no sleep and no food - in full lotus yoga meditation in a cave at Mt. Qingcheng. http://springforestqigong.com based on http://qigongmaster.com
I know that ghosts are real. Marx was a good critic but the problem goes back to the logarithmic/exponential math of Plato/Archytas as Economics Professor Michael E. Hudson points out. Even Western music is mass brainwashing as it's the origin of the wrong logarithmic/exponential math - Hudson started out in music training so he knows this secret music origin of Western math as well. So actually our original human culture - the San Bushmen - knew how to live properly since before 70,000 BCE and they're still around. They've been misrepresented of course since Westerners are in denial.
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