Investors and governments pretend MMT doesn’t yet exist
The essential idea of MMT is that governments can fund an extraordinary expansion of programs without harming the economy. [Ray] Dalio says MMT-based proposals could happen, but he also noted there were many different ways to deploy the “printed” funds, with Ocasio-Cortez’s proposals just one possibility.
Dalio commented that some MMT-based proposals advocated by Ocasio-Cortez might make sense. For example, he voiced his support of guaranteed jobs in a recession, but argued that the way this was implemented would be critical.
The developed nations already operate under an MMT framework. This is not a monopoly exclusive to the United States. Ever since last decade’s manufactured crisis when the central banks stepped in and began buying sovereign debt securities to make up for the government funding shortfall, we effectively have worked with a game plan that operated like MMT.
The only difference between what investors like Dalio and Buffett, as well as Fed Chairman, Powell are talking about are that we have yet to admit that MMT is a reality. For some reason, the topic of MMT is prefaced as a political debate. Do you think Ocasio-Cortez is any type of expert of MMT? Of course, not. The federal government under President Trump already operates under the guise of how MMT is described. I will call it MMF – Modern Monetary Fact. Trump’s trillion dollar deficits are financed with dollar-based debt that’s bought by the central banks. Whether these printed dollars get spent on defense or housing vouchers is irrelevant. And that’s where the manufactured political debate come in. It’s just another one of the false left/right debates that get the unwashed in a lather.
Under this monetary system, the central banks are the crucial element with MMF in that they provide the needed spending liquidity. I think what Dalio is discussing is that we should get rid of the Central Bank mechanism and have the government directly issue the money. I can’t think of any other reason why he thinks MMT is not yet a reality.
We have already discussed that the concept of MMT has been introduced by the globalists and injected into the discussion for a particular reason. So, I do not exert my energy discussing MMT with others only because the world and the major central banks already operate under the premise of MMT.
The Euro nations operate under MMT. The United States, England, China, Japan, Australia, and Canada, etc, already operate under the framework of MMT. The central banks now buy the sovereign debt and they print the same-denominated issue currency as a result to fund the government deficits. This allows to the governments to spend as they wish with little repercussion of future ramifications. Only a growing inflation problem would end MMF – and with the world sinking in a sea of deflationary red ink, we need to dispel the myth that inflation is coming. There will be no rise in the inflation rate when Joe-Six pack can barely service his debts. How can Mr. Six-pack bid up prices?
If Dalio is correct and he says we are getting rid of the central banks, then I wonder how the globalists will still control the monetary printing. They must come up with another device in which they control it, because the United States Treasury certainly will not print dollars as needed. That would be inflationary as there will be no offsetting debt on the global balance sheet. Do you think any U.S. president will promulgate this type of process? Just look at what happened to JFK. The owners of the central banks left their calling card in Dallas on 11/22/1963.
A new dawn has arrived; Embrace the free money!
This is why I am bullish on the asset markets. Large investors like Buffett and Dalio have made billions off of MMF, but do not want to admit that we employ it. It may rock the boat, so the authorities generate these silly debates and the average person eats it up.
Because of low inflation it seems like we can generate as much debt as we want. As long as we can generate all the debt required to facilitate spending, the asset markets will continue to climb over the long-term.
With low inflation we can have any type of monetary system we choose. It’s clearly evident that the population of the ungodly prefer this one. Everyone can have their own personal bailout without the repercussions of inflation. We can all be lazy and drop out of the work force.
If you ever watched how humanity behaved in the movie, Wall-E, that is the end result of MMF. It’s here already, but it will grow in size and popularity as the kinks of QE are worked out and refined. As inflation expectations continue to fall, MMF will come out of the closet and the people will rejoice.