They eliminate the word republic from the constitution, the give to the government all the three powers... i mean, the regulation issue is just one of the few big things that bothers europe

But the parliament of Hungary at the same time installed censorship for media.

This just tells how smart they are. If you can't punish mass media they'll translate opinion of real world rulers. Just because it brings more money and it is safer.

It'll be interesting to see where this goes.

It could work OK. But they have to have constitutional limits on what they can do. For example, they must be sufficiently transparent for investors, and make it illegal to emit unbacked currency. Without this, there will be capital flight. Even if they do this, other central banks (who are responsible for the biggest cross border currency transactions) might gang up on them

Hungary runs a deficit so needs to raise money from international investors. Whatever form of monetary policy they choose, it has to retain investor confidence or else there will be capital flight, bank runs and hyperinflation (investors won't buy bonds if they believe the monetary policy will debase the currency)

Hungary runs a deficit so needs to raise money from international investors.

You have big problems with logic. If you have deficit you need to improve real sector inside country and cut deficit, not to "raise money from international investors".

True, either cut spending or sell debt

Again logic problems. You don't need to cut spending, quite opposite, as you need to build real sector, so, you need fully contolled central bank. And especially not to sell debt.

Liberal monetarism invented aftremely effective measure to control other countries and elslave them:

• make independent central banks
• control mass media
• have foreign banks and their respresentatives inside country
• use controllable insurers to enslave agro sector and manufacturing sectors

So, to allow any normal development (not via debt), you need:

• total mass media control, with will money flow made via state bank
• full closure of all independent banks leaving state bank only
• full closure of all independent insurers leaving state insurer only
• inposing strict restrictions on capital flows
• full control of central bank and state bank by goverment

Government spends more than it earns. The net saving rate for Hungary is not enough to buy the difference (unlike Japan up until last year). So currently, Hungary has to sell bonds to international investors.

@Vitaliy_Kiselev - if your monetary system were implemented, presumably this would happen with default on pre-existing bonds to foreigners? If not, how can the Government earn enough to pay them off and do all the other things you mentioned? If Hungary does default, the forint will sink in value so imports become a problem. I like the idea of money that is not debt-backed - I think the USA had this for a while.

@johnnym - there may not be unbacked currency at the moment but if Hungarian politicians dictate central bank policy, we don't know what they'll do. They may refuse Vitaliy's plan, print money and not control capital flows. The track record for Governments that usurp central bank operations in modern times is that they do it to spend on short-term bribes to the electorate or to steal money.

If there is anything to be called a dictatorship it's the corporate control we have now, the inverted totalitarianism as it is called. If you would hand all those powers, like the press, like politics, .. back to the people (instead of leaving it with the monopolithic companies these powers now reside), like Vitaliy says, in financial terms by means of state bank, all troubles would be solved rather quickly. Only corporate control will not go away by itself.

Why sad? It seems such a place is heaven?