Guest Post by Doug Casey via International Man
Modern Monetary Theory (MMT) centers around the notion that the economy in general, and money in particular, should be the creatures of the State.
It’s not a new idea – the meme has been around in one form or another since at least the days of Marx.
MMT basically posits that the wise and incorruptible solons in government should create as much currency as they think is needed, spend it in areas they like, and solve any problems that occur with more laws and regulations.
It’s nothing new. Just a more radical version of the economic fascism that’s dominated the U.S. since at least the days of the New Deal. It’s just another name for an old, and very stupid, set of economic ideas. By stupid I mean, “showing an inability to predict the indirect and delayed consequences of actions.”
Won’t Work
Politicians are now talking about the supposed benefits of MMT. Pseudo-economists are doing their abstruse and incomprehensible mathematical computations about how it might affect the economy.
The public will easily be convinced they’ll get something for nothing.
But what we should be talking about here is moral principle. It’s not a question of whether MMT will work or not work. It won’t. It will work about as well as the economic policies of Venezuela and Zimbabwe, or Argentina.
These schemes have never worked in all of history. They result in a vastly lower standard of living, along with social strife. MMT is about radically increased government control. The argument shouldn’t be over whether MMT will “work” or not. The argument should be about whether it’s moral and proper for people in the government – whether elected or appointed – to print money to change the economy into something that suits them better.
What Money Is
Money represents the hours of your life that you spent earning it. That’s the basic principle here. It represents concentrated life – all the things you want to have and do for yourself, and provide for others in the future.
When these people destroy the value of money, they’re destroying part of your life.
“Inflation” isn’t caused by greedy butchers, bakers, and gasoline makers. It’s caused by an excess of purchasing media. MMT will give the State total control of its quantity and quality.
If the government increases the money supply by, say, 10 times, general prices will go up by 10 times. The value of your dollar savings will drop 90% – perhaps most Americans won’t care, because they have no savings, just debt.
In any event, some people will get hold of a lot more of that 10x increase than others. And they’ll get hold of it earlier, before prices really take off.
Who? Inevitably cronies.
Moral Question
Look, absolutely every government intrusion into the economy – whether it’s taxes or regulations or inflation – always benefits the people in and around the government. And damages society as a whole.
But they’re sold to the voters, to the hoi polloi, to the “head count,” as something that will put them on easy street. Which is a lie, of course.
But that’s not what the argument should be about. The average guy doesn’t understand economics; he doesn’t think, he feels.
Furthermore, nobody talks about whether cockamamie ideas like MMT are morally right or wrong. Instead, they have pointless and ridiculous arguments about whether it works or not. Well, it doesn’t work. But that’s a distraction.
This matter is essentially a moral question, not a technical question. Does somebody in government have a right to determine your economic destiny? Or not?
The fact that Alexandria Ocasio-Cortez [AOC] – an ambitious, terminally ignorant, morally crippled 31-year-old Puerto Rican bartender – is setting the tone for this whole discussion tells you how degraded the U.S. has become. It’s well on its way to turning into a giant welfare and police state.
But, as you know, I always look on the bright side. Which is that – if you give yourself a little psychological distance – this is all a comedy.
AOC, The Donald, Bolton, Bernie Sanders, Pocahontas, Hillary, Kamala, etc., etc. They’re all dangerous megalomaniacs. But the chimpanzees listen to them, choose teams, hang on to their every word, support them, and are easily incited to hoot and pant at each other.
The American public is going to get exactly what it deserves. I have no sympathy for them. Or about as much as I would have had for the Romans in the fifth century, when the empire was collapsing.
Editor’s Note: It’s clear the Fed’s money printing is about to go into overdrive. The Fed has already pumped enormous distortions into the economy and inflated an “everything bubble.” The next round of money printing is likely to bring the situation to a breaking point.
We’re on the cusp of a global economic crisis that could eclipse anything we’ve seen before. That’s precisely why bestselling author and legendary speculator Doug Casey just released this urgent video.
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
Got Gold?
Who can afford gold? Silver might be doable.
“showing an inability to predict the indirect and delayed consequences of actions.”
Doug….Henry Hazlitt said in book “Economics In One Lesson ” that the gooberment never considers the long term effects of a bill that they pass.
The same goes for Central Banks, they are just like Socialists in that they consider their ” Economic Theory” to be superior to those in the past because those failed theories weren’t done right .
Politicians, or their owners used to oppose things like the free minting of Silver. While it may have been the MMT of its day, at least it was about expanding precious metal money supply. At one time, you could take a wagon load of Silver to the mint and they would turn it all into Silver US Dollars for you.
The picture depicts currency/fiat NOT money. Only gold and silver are money. Fiat is designed to destruct at the end of it’s cycle. Modern monetary theory/money majick will not destroy real money….. complete BS.
Normalcy bias, far too many believe that something that appears to function will continue to do so. For such fallacious practices as modern monetary theory, it will work until it doesn’t. When it fails it will be suddenly, like a switch turning off, the only question is when.
My boss Jim Jones says the Texas freeze is the cause of all the building supply problems.
My old boss Charles Manson says that is was the California wild fires, takes a lot of boards to build three million dollar homes.
My boss Jack D Ripper thinks a sheet of OSB is reasonably priced at $50.00 per sheet.
My first boss, Lester Maddox, said good ash handles are in short supply due to Canadians thinking about baby seal season being extended next year due to global warming.
MMT is Keynesian, the exact same thing, only difference is , the government never backed out of propping up the the whole system, they are suppose to back out when the economy can stand on its own, all it tells you is the economy can not stand on its own, when 50% of the population dont work-period
Money is really a myth, it only works if we believe in it. I think that’s why the government will create trillions in new debt at the push of a button, and then claim they need to raise taxes to pay for the debt.
If they didn’t raise taxes we would eventually lose faith in paper as a store of value, or it’s worth.
Religions all over the world demand, require and killed to force others to believe in their faith, yet they all peacefully believe in paper money, as long as others believe in paper money.
Valid point, well stated.
Since the days of Marx? Wow, no at least since the end decades of the Roman Empire.
“Just a more radical version of the economic fascism that’s dominated the U.S. since at least the days of the New Deal.” Really fucking tired of people confusing fascism with communism.