Push The Handle, Raise The Chain, There Goes The Dollar…
Guest Post by Dennis Miller at Miller On The Money
Since the 2008 bank bailouts, government spending, deficits and debt have hit historic proportions, with no end in sight. US debt was around $9 trillion in 2008, and will soon hit $45 trillion. How can the political class justify such irresponsible, outrageous behavior?
Congresswoman Alexandria Ocasio-Cortez (AOC) (former waitress and bartender) advocates the Modern Monetary Theory (MMT). Investopedia defines MMT this way:
“A macroeconomic theory that says that countries that control their own currencies, like the US, are not constrained by revenues when it comes to government spending.
| “Only the naive inflationists could believe that government could enrich mankind through fiat money.”
— Ludwig von Mises |
…. (MMT) decrees that such governments do not rely on taxes or borrowing for spending since they can print as much money as they need and are the monopoly issuers of the currency.
Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of a rising national debt.”
Don’t buy the stupid political dogfight; when it comes to MMT, they are all to blame. The hoopla about raising the debt ceiling is a farce, Congress readily agrees that spending our money is in their best interest – even if it means creating dollars out of thin air.
Storm Clouds Brewing
Their misdeeds hang over us like huge dark clouds, ready to storm at any moment.
Expert Chuck Butler refers to MMT as the “Magic Money Tree.” The government floods the system with magic money, citizens get free stuff, politically connected get rich, the market soars, the banks make trillions…what could possibly go wrong? It’s a fun party, until it stops!
Mainstream America suffers the headache, and the mess, of the inevitable inflation.
Politicians ignore a major flaw in the theory; the US does not live in a vacuum; other nations no longer want, or need our worthless “Magic Money.”
Inflation is a government policy sponsored by the entire political class. If printing money created wealth, Argentina, Venezuela and Zimbabwe would be the richest countries on earth. Politicos think they are smarter than the citizens, constantly seeking the easy way out, as opposed to governing responsibly.
“How can the political class justify such irresponsible, outrageous behavior?”
simple.
1) it benefits them.
2) the cattle do not object sufficiently.
3) in juudaism, it’s all theirs anyway, so there’s no problem to begin with.
It’s critical to understand…
(((Dollars))) are fiat “currency”, not money…
Gold is money…
“fiat currency”
more accurately, fiat debt.
And they expect us to go out and wage slave for our existence
yes, they do. in their religion god created them, and then he created the rest of the universe around them to fit them and suit them. simply put, the entire universe and all it contains, including you, is theirs, their property, theirs by right, theirs by divine intention.
you work for them.
get to work.
Full throttle off the cliff.
.
I suppose those who have not experienced run away inflation have a hard time understanding the mechanics of it.
You are only just now beginning to see the mechanism by which inflation kills the economy, and begins the debt default deflationary cycle.
The numbers are always manipulated to claim the GDP is growing despite the fact that the only thing pushing up the GDP numbers is the price increases in the face of declining overall sales. It begins with the economy shrinking, while the government and media lie about it and claiming the economy is still strong.
What is much harder to see, is the phenomena of buyers regret. That feeling that you are acting foolishly and cannot enjoy the overpriced lunch or bar tab. You cannot enjoy it because the price is just too high.
Being creatures of habit, we continue to try to purchase the things we always have, but we continue to experience pain instead of satisfaction because the prices are simply outrageous.
That pain reshapes our pain / reward programing, and we begin to experience anxiety over those purchases that induce negative feelings.
In short, purchases begin to be more painful than pleasurable.
This causes the economy to contract, which in turn causes unemployment to increase exasperating the problem. In a severe recession this results in a feedback loop of slower spending causing more layoffs, which causes even lower spending. If this feedback loop lasts long enough, it causes permanent phycological changes in the purchasing public. That is what happened in Great Depression and the effects of the pain stayed with the people who experienced it their entire lives.