MMT
MFS Multimarket Income Trust
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Sage Potash (SGPTF SAGE.v) secures a key water rights permit - an essential milestone on its path to production
What if we’re wrong about Bitcoin? What if we’re wrong about money, central planning, debt-based leverage, and MMT?
I'm really liking the looks of LiDar tech and would love some more info/insight into the space.
With the potash market experiencing significant growth as demand continues to outpace supply, it's critical for the US to develop its own domestic supply & Sage Potash (SAGE.v) is one company that is on track to take advantage of this opportunity.
Russia & China have a stranglehold on the world's food security. The US is 93% dependant on inconsistent foreign potash imports to support their agriculture industry... This little company in Utah has the solution - A due diligence summary on Sage Potash Corp - Ticker SAGE.V
Question on the intersection between MMT, CBDC, ETFs, and Liquidity?
Opening up Pandora’s box of ETF distributions
$GCAC - Growth Capital Acquisition Corp to combine with Cepton, a maker of "high performance MMT® lidar solutions", for $1.5 billion
Why I think Alibaba is about to bottom here soon and soar over next 2 years.
IVR and other mREITS, why they gonna rocket in July. A+B+C=🌕
Inflation is here, but the media do a poor job covering it. Here is a brief DD having followed this topic closely since 2008
2021 expectations ( all not financial advice all my humble imho )
Hedge time after Fed powell confess that inflation
Masterpiece for investment from Egon von greyerz suck me and read and read . Pls upvote so everybody read
MMT Stephanie Kelton on infrastructure and the economy: The Deficit Myth - The Politicus
SLV is a complete scam, its a scalp trade set up by banks to screw over investors. Avoid it at all costs. The silver market is and has been rigged for decades
Mentions
The Fed has already capitulated, 2% is an outdated inflation benchmark in this new era of MMT.
Lol no. Don't care about crypto. Just realistic about how MMT works and what it means for trading. Stay poor.
Nonsense. The 2022 drop was a small blip that was telegraphed by the Fed. The 2000 and 2009 drops were different because they were before the Fed decided the answer was unlimited money printing. Remember Yellen saying they'll never be a recession ever again? We are in totally different era. Markets don't drop. Economies don't crash. Not anymore now all corrections happen through inflation due to money printing. You devalue people purchasing power by inflating the money supply. I wish it wasn't so and there wouldn't be market interference but the MMT people have decided otherwise.
Good to see someone knows a thing or two about MMT
My reply might be a bit lacking here because I’m typing it out on my phone now. I’m not an Austrian fanatic or some type of anarchist ideologue. Yes, I agree that law creates money. Yes I agree that inflation doesn’t matter in the short term, but in the long term price instability can erode the ability for agents to plan for the future. When you say savings demand, I think of it as more units of account are required because people owe and are owed more. I view all money as an IOU. You don’t need a government to create money, and money in that sense has existed long before government and still in many ways exists today outside of government. What government does is facilitate the exchange of IOUs among strangers. I’m sure you’re aware of the barter myth, but if not… Barter never existed before “money”, certainly not how most understand. Most human exchange was done by giving something someone needs now in exchange for a promise to receive something of somewhat equal value in the future. If I had five chickens and you had a cow, and you wanted my chickens and but I did not want your cow, how do we trade? This is where the barter myth of Smith comes along. They couldn’t barter therefore money. This explanation misses the fact that almost all human interaction and exchange was done among the same 50 friends/family in your tiny village that you’ve know your entire life. We don’t need “money” from a government to exchange if we know and trust each other. I will give you my chickens because I know at some point in the future you will have something that I need, and you will repay me. This works great among people you trust to repay, but you can’t trust strangers to pay you back surely. In those limited human exchanges which took place among strangers, that’s where you must then barter without “money”. You must exchange goods for goods because you cannot trust the stranger to ever pay you back. So now the first civilizations came along. The first governments. Built on top of writing and social violence to glue strangers together. All government is in this equation is an intermediary between strangers in the exchange of IOUs, exactly like a bank. Yes this is where MMT gets some stuff sort of right. You accept government money because you must pay the government taxes with that money. Sure the system works now and that is indeed how it works. At some point though people can easily start to say “I’m not paying” or “I don’t like the government. MMT treats the modern state as some sort of deity that can never fail. They talk about government money as of it has always existed as it does and this is the only way it can exist. The United States didn’t even have a national currency until after the Civil War. Every citizen in the United States transacted through tens of thousands of local banks, and that’s it. Yes, with how social relations are setup right now, the government can print more money to make people make things that it wants. What’s missing is that all of this is built on top of people accepting the government as authority. All governments eventually collapse. The new government that comes after might be completely unable to direct economic activity with violence/social buy/in (print money and force people to pay taxes with it). To your other points. I’m not a free market fanatic. Generally I think most people are better off if they can freely choose what they want, instead of being forced to do what the king wants. Liberty is a great thing that has propelled us forward as a species. You should consider that more, and the implications of having the state as an agent that can direct all human exchange at will. Again I don’t believe the government is inherently evil, I simply believe that giving the government too much power is not a good thing.
1980 to 2020, our public debt went x40 nearly. And our Money supply just from 2010-2020 went 2.5x. All the while, inflation DECREASED, not INCREASED. It went down. That is ultimately part of the MMT framework. Spending bills CAN be inflationary, but it's not an automatic result. Govt owns the currency, is a monopoly owner, and thus dictate's employment. Thus they need to spend to not cut circulation off (employment). Taxing removes dollars from the system.
US Government doesn't borrow. They enable private banks to exchange one form of money (cash) for another (bonds) mainly to control the overnight interest rate. Bonds, like taxation, don't fund govt spending. Selling bonds is a policy and an operational choice. MMT is more like a car manual, it explains how the system currently works. It's descriptive. An updated manual on how the US plumbing works. MMT economists have then said, based on this understanding, it might be a good idea to let free market set interest rates, and to worry about inflation while spending, not "do we have the money" - which is a nonsensical question, given that the US creates money. Also bonds are inflationary given you can sell them whenever you want, and they add income to the holder, which is paid for by the govt. So it's silly to say we issue bonds entirely because it reduces inflation, while the true purpose is to effect the overnight interest rate.
MMT's aren't much better. Government money exists so that the government can extract resources from the population. The government is not able to extract more resources from the its population if it prints more money. As such the government can extract resources from the population with money in two different ways. Either forcibly through taxation, or by borrowing it. I can go much more in depth if you would like but ponder another question that i'm sure would make Kelton stumble as much as that hack she was talking to. Why does the government need money which it can print?
Money is simply a promise to pay. If I promise to give you 3 pigs in the future and write the IOU 3 PIGS on a piece of paper, I have created money. The government and the banking system simply allows for this exchange to happen among strangers. If I know you personally, I would trust you to pay me back in the future, but If you are a stranger I will not. Government and the banking system acts as an intermediary between strangers in this exchange. The banking system remains an intermediary on the basis of trust, the government remains an intermediary on the basis that they forcibly extract resources from you and they do so through a unit of account that we call money. The reason governments borrow money today can be traced back to an English king of the 17th century. His nobility and bourgeois had amassed such power that he could not forcibly extract resources from them to build naval ships for one of England's many wars at the time. Thus came along the bright idea of instead having government "borrow" resources from the population. The mafia boss taking something from you and promising to pay you back is a much easier pill to swallow then the mafia boss just taking something from you. Now whether or not the mafia boss will actually pay you back is another question entirely. Remove money from the equation. If I loan to the government 10 hours of my labor I expect to at least be paid back 10 hours of my labor in the future. The government can't do out of thin air by printing the food and gadgets that 10 hours of my labor could purchase at the time. They have to actually provide the food and gadgets. MMT theorists I guess are at least more close to the market when it comes to the true nature of money in relation to mainstream economists, but they are so painfully wrong on the ability of government to "print" their way out of anything. Its comical and exhausting. Reduce abstractions to the root and it is there that you will find the truth.
Money is simply a promise to pay. If I promise to give you 3 pigs in the future and write the IOU 3 PIGS on a piece of paper, I have created money. The government and the banking system simply allows for this exchange to happen among strangers. If I know you personally, I would trust you to pay me back in the future, but If you are a stranger I will not. Government and the banking system acts as an intermediary between strangers in this exchange. The banking system remains an intermediary on the basis of trust, the government remains an intermediary on the basis that they forcibly extract resources from you and they do so through a unit of account that we call money. The reason governments borrow money today can be traced back to an English king of the 17th century. His nobility and bourgeois had amassed such power that he could not forcibly extract resources from them to build naval ships for one of England's many wars at the time. Thus came along the bright idea of instead having government "borrow" resources from the population. The mafia boss taking something from you and promising to pay you back is a much easier pill to swallow then the mafia boss just taking something from you. Now whether or not the mafia boss will actually pay you back is another question entirely. Remove money from the equation. If I loan to the government 10 hours of my labor I expect to at least be paid back 10 hours of my labor in the future. The government can't do out of thin air by printing the food and gadgets that 10 hours of my labor could purchase at the time. They have to actually provide the food and gadgets. MMT theorists I guess are at least more close to the market when it comes to the true nature of money in relation to mainstream economists, but they are so painfully wrong on the ability of government to "print" their way out of anything. Its comical and exhausting. Reduce abstractions to the root and it is there that you will find the truth.
I think in the next 20 years MMT is gonna become more mainstream. The wrangling of inflation this past year shows the truth of it
This guy doesn't understand MMT. But Kelton, the other person in the video, obviously is the face of MMT. And she won't stfu about inflation so dunno what you're on about.
That's MMT for ya. Fucking retards if you ask me.
If you know what MMT stands for, you probably already understand it.
Someone said in the comments the movements of markets is made up by millions of players. I dont think so anymore. All 4 mayor indices sold off at the exact same time? Compare the curves of all the daily charts of nq, es, russel and dow in yahoo or whatever you are using and you will see the exact same curve. You want to tell me everyone thought the same thing at the same time, yet we are left here wondering.... i dont think it is retail or hedgefunds anymore who decide. Is a few big players or one big Market Maker that plays with options premiums (maybe) and flips a switch. Or algorithms on all mayor indices are interconected and they cause a chain reaction. And perform in a correlated fashion. MMT is non existant anymore, all there is is MM, algos, and retail. I know it sounds insane, but this year has been insane movements of billions of dollar and you can find correlations everywhere. It doesnt seem organic, somehow im still profitable...
This has been the case since 2008 and has gotten worse with each "crisis." 2020 kinda broke the camel's back tbh. Maybe nature is healing. Probably not. Pump gonna have to happen in an election year. MMT says deficits don't matter so no reason to believe we can't pave this road with some more good intentions. 👍
I think none of us understand MMT
Yeah it's called MMT: Murder Moron Traders
Bear markets are an obsolete relic of the pre-MMT past.
Hey at least we can all have a good laugh at the MMT fools along the way
Yeah, I'm not saying that's *true*; I'm just saying that that's what the MMT people believe
Great idea, time to take out a $250K loan to go learn about how, according to MMT, a government which issues Fiat can't be forced to default on its debt... All while knowing that *I'm* not a government which issues Fiat, so *I* can be forced to default on my debt Fortunately, I can do all this right in the heart of NYC, where the subway stations are all plentiful with rats for me to kill for food when I finally default and lose my house.
I'm not sure I've properly relayed the full concept of MMT. Taxation *could* be deflationary, but under MMT, it wouldn't be. The argument for MMT is that the government can borrow and spend as much as it likes and use taxation as the lever to control inflation. Under those circumstances, with the government spending like that, like it did with stimulus, inflation would not be checked by taxation. The left loves the concept because with it, they can grow the government endlessly.
You've just described Modern Monetary Theory (MMT). It's one of the scariest liberal ideas out there. Guaranteed to completely f*ck our country. The general idea is that you can inflate the money supply endlessly as long as you take it back from people through taxes, as if that removes it from the money supply, which it doesn't, because the government is just going to spend it. I read a book about it a few years ago, and it gave me nightmares. The author was a true believer, and her arguments were so poorly thought out that I just knew the left would eat it up.
This is why MMT, which a shocking number of Americans actually believe in, is lunacy.
But I guess you're correct, and I was wrong to say the inflation was by design. Rather, they knew their policies were inflationary but didn't think it would be a problem. Then, when they realized MMT is wrong and inflation is/can be a big problem for an economy they did things to fight that inflation (interest rates, SPR, etc) which have lowered the rate of inflation. However, looking forward, trillions of dollars in new spending are coming (infrastructure bill/chips act/ largest single year budget in history, etc) combined with reports of rate cuts which could and probably will cause more inflation.
They definitely pivoted in their policies after a brutal first 18 months. But the MMT wing of the blue team wants inflation. In their view they can inflate the debt away. In their view government spending/deficits don't matter and are in fact good. And many in the Biden administration are known MMT'rs including Janet Yellen. https://www.masterclass.com/articles/modern-monetary-theory?campaignid=20647728921&adgroupid=161385380344&adid=676956386850&utm_term=&utm_campaign=%5BMC%5D+%7C+Search+%7C+NonBrand+%7C+Category_DSA+Consolidated+%7C+ALL+%7C+EN+%7C+tCPA+%7C+EG&utm_source=google&utm_medium=search&utm_content=676956386850&hsa_acc=9801000675&hsa_cam=17057064710&hsa_grp=161385380344&hsa_ad=676956386850&hsa_src=g&hsa_tgt=dsa-1456167871416&hsa_kw=&hsa_mt=&hsa_net=adwords&hsa_ver=3&gad_source=1&gclid=Cj0KCQjwk6SwBhDPARIsAJ59GwcK1g82bEMlKuEojiZi_bLawM7_cJ6bgu1KgaxQBUi2Ztm8W8ztUeEaAvHyEALw_wcB#7hSp1YDzMlWx35daR7uf8T
I would love to see this country with 60% debt-to-gdp and a topped off SS trust fund, but we can't have those things because nobody wants MMT to work.
Debt is modern-day SLAVERY. Starting to get really fed up with the Modern Monetary Theorists (MMT).
Think of it more as a hedge against MMT.
No doubt. Their adherence to Krugman's MMT bullshit is now at the death spiral. The yen is going to hyperinflate. Epic.
Sorry how does Japan having large debt disprove MMT? You likely are making a circular argument. You can't assume things co teary to MMT when arguing against it.
Sorry to not answer the question. But Japan has the highest debt:gdp ratio in the world I believe. And negative interest rates are just another form of quantitative easing (QE), in other words printing money. What this implies is that MMT is no good. It cannot be sustained. The US should see this and be warned because our debt is outta control.
I seem to remember Krugman shitting on MMT many times.
I think the framing is always about the amount of debt when the concern should be how much we spend on interest payments. Irregardless of who's holding the debt the government has to pay interest on it. MMT's argument is as long as the debt is going investing for the future that's fine because taxes will continue increasing to offset interest payments. I dunno, I think that's magic handwaving and only works if the economy is always growing and in an upcycle. We have a population shift going on and I don't know how we can keep growing the tax base if the country is growing population wise by less then 1% a year.
You're asking a relevant question and getting downvoted for it. I've been grappling with this a as well because it's the reply from the MMT crowd. But it isn't reassuring to me. I get that the US should not be worried about defaulting on a loan to itself, but economies operate on a shared faith in a currency, and ours is being undermined.
The problem is that in both cases there will be a HIGH DEBASEMENT OF THE CURRENCY. [The FIAT Money was Design for Debasement your Purchasing Power 💡 : r/Bitcoin (reddit.com)](https://www.reddit.com/r/Bitcoin/comments/13qdi0x/the_fiat_money_was_design_for_debasement_your/) MMT = Modern Monetary Theory. With a High Currency Debasement the Stock Market does not go down, it goes up! Just like countries with Hyperinflation (100%+) such as Argentina or Venezuela, their Stock Markets Soar. [Milton Friedman Explaining Inflation - Modern Monetary Theory Economics ⚠️ : r/wallstreetbets (reddit.com)](https://www.reddit.com/r/wallstreetbets/comments/16rko7a/comment/k248riz/) related commentary **Many people dont understand the KEY ROLE that INFLATION plays in Economic Growth & Coporations Revenues and Earnings Growth ;) You have to Understand this! Its Important!**
You joke but with MMT this is basically possible lmao
I have a guy. Good place to start though is looking at the monthly Treasury statements. Helps to have a background in data analysis. But honestly just look for someone that does market analysis with MMT as the main focus and you’ll be good
Don’t worry, according to MMT, those interest payments are meaningless lol
Retail spending tanked. Credit lending is extremely tight. The risk of bailing out Wall st. like during the GFC without bailing out Main st. Would cause civil unrest. Of course the progressives would love to expunge all student debt, get everyone on government largesse, and widen the gap between the haves and the have nots. Rest assured the easiest way is to inflate away all the debt via MMT.
In addition to some of the things you listed, I'm most worried about the "everything bubble" and high debt levels. PE ratios are at historic highs, so prices seem setup for a fall. And maintaining the federal debt in the US is becoming one of the most expensive items in the budget (forget about comparisons to GDP and MMT hand-waiving).
the government has to borrow at high rates... MMT is falling apart in front of our eyes
America is almost insolvent America has been insolvent for YEARS. nothing new. these fools think MMT works CRE is fucked and they have been saying it for years.
I never bought in to this whole MMT shyt, and it seems to be the premise that the world is functioning on. I've always went with the "US catches a cold and world catches a flu", cause we're pretty sick right now. There are problems they don't cover or highlight which would be the cause for a downward tick, it was the success of the manipulation at this level that I underestimated and the tolerance of the worlds economies putting up with our shenanigans controlling the worlds reserve currency. I see both sides...knocks on my door of friends and family needing a roof, while we recently ran out of parking spaces for private aircraft during F1 and about to have the same problem this weekend at the Superbowl and their $7k tickets ($2-$40k+) I dunno man....guy had a cardboard sign that said hungry as I walked to enter a $billion building covered in screens. The ugly is getting closer and closer to the beautiful, regardless of how far you twist your neck to the other side so you don't see it. alas, I am John Snow and I know nothing!
MMT is not a sound economic theory.
I try to explain how the government overspending and undertaxing is similar to climate change (which they have no problem understanding). It's not a catastrophic failure today, but if we continue walking down this path, at some point, man-bear-pig is going to jump out of the bushes and tear us to shreds. They always just wave their hands and counter-argue with Modern Money Theory. I guess NPR told them not to worry because MMT means that everything is fine.
MMT addresses it. Basically, it posits that as long as you have a sovereign currency, you can issue as much currency as you need to cover any shortfalls as long as inflation and unemployment remain within acceptable levels. It feels wrong and counter-intuitive (to me), but there's evidence it's actually... not wrong.
Hear that sound? That's the sound of a million redditors, proponents of MMT, crying out in unison. Of course, the next push will be that we need to raise taxes $1 trillion or so a year.
You have no idea what you are talking about. Organic economic growth is never a bad thing. And I'm clearly not arguing for deflation. Either steady prices, or very, very slow inflation is the right target. There's no reason that decreasing the rate at which you print money drives interest rates up; interest rates are set by the Federal Reserve, and are increased to slow economic growth, which will also slow inflation, but only by virtue of hurting debtors and the private economy. Printing money is simply theft from the private economy to the public sector. Its a way to devalue all wealth holders, in favor of the rent-seeking federal government. Its simply madness to argue in favor of the abomination that is MMT (Modern Monetary Theory). The only people who do are either a) fools or b) big government corruptocrats.
Because we’re never going back to that regime of interest rate policy. It’s just not going to happen. Call it MMT, call it whatever you want, the fed has shown for decades now that it isn’t going to raise rates as high as it did, eg, 30-40 years ago
Don't worry. If there is a "recession", the fed and the shills can just change the definition of "recession", no more "recession". Then they can pump more money and do more QE and do more bailouts and set up more "special facilities". MMT means that everybody can always be rich with zero consequences. It's like magic.
National Debt, up to 2008, never went over a few trillion at most. Since then, $30 trillion was added to it. ​ You're repeating a cliche of MMT that you neither understand, nor that applies. Why does that $30 trillion need to be paid off? Because the interest alone will destroy the country in a few years. Seriously consider taking an econ class.
Donald Trump, famous MMT proponent, threatened to fire Powell if rates rose during his term.
Republicans are not the advocates of MMT. That’s AOC and her crew. Why collect taxes? Just money more money for universal income.
MMT doesn’t say “keep rates permanently low”
Welcome to MMT. Look it up and it will answer your questions
Theoretically, under MMT, taxes ARE the way to regulate inflation. However since our tax code is difficult to change and requires a lengthy period of adjustment, it’s not really capable of providing the hedge against inflation that is needed.
Fiscal flows. Look into MMT. Douglas MMT I think is his name on YouTube is a good place to start
Decrease the amount of VFX artists maybe, possibly voice actors. Long long term hopefully it's good enough that you don't even need actors or sets and can render reality. I know this sounds awful to some but tech is deflationary and deflation is a good thing for consumers unless you believe in MMT or something.
Look into MMT. The national debt is one of the most commonly misunderstood “issues” by nearly everyone. It isn’t like a household debt that needs to be repaid. When you wanna buy something expensive, let’s say a house, you take out a loan and slowly pay it back over the years. When the US government wants to buy something expensive, congress approves it via spending bills and that money is created via the treasury. The national debt is basically just a measure of the money supply created through government spending. It’s a complete non-issue but people love to lose their minds over the seemingly astronomical number
This is the same line of thinking that begat the inflation we’ve seen even after lockdown-induced supply chain issues resolved. A weaker dollar is great for huge corps with large overseas operations, and for foreign investors, at the expense of regular Americans. There are already a fuckload of fiat and treausurys held overseas. The govt does not *need* to deficit spend, especially at -7%. We cannot continue to service our growing debt and our grandkids are going to fucking hate us for it. Fuck MMT. I don’t know why anyone trusts our govt to pull off complex theoretical plans that make us *theoretically* better off when the cost of botching it halfway through is to fuck us, which they’re doing. Instead of mental gymnastics to justify why we can/need to spend more, maybe govt should just try, y’know, balancing the budget for once. **For a while**. The last guy to do it was *Bill fucking Clinton*, almost 30 years ago.
Isn't MMT basically considered woke
Look into MMT if you wanna know what actually moves stocks. Mike Norman is a good guy to follow
If one day MMT is tried, I’m curious how much asset price inflation we’d see
MMT? Is the unicorn in the rom with us now?
You say this isn't a debate and you have no horse, yet you continue to push a false, misleading narrative. You also seem to be extremely uninformed to have this "conversation". The 40% increase did not, infact, go to "the mass". That's false, 450 million in covid relief if that's what you are referring to is nothing. In late 2019, before covid, the US secretly (at the time) bailed out most of our major banks, again. That was 4 Trillion dollars created. You say you have no ideological horse and you a scientist, then state as if fact "It's not the expansion of the money supply itself that directly caused inflation". That's also wrong, flat out false. You're spewing the idiotic ideals of MMT which are generally shunned by economist. You state "the money supply increased drastically for more than a decade leading up to the pandemic too". Not anywhere near to the scale for 40% in a couple years. It took a decade to increase that much, but your right that increasing the money supply beyond reason for a decade and then doubling down sent inflation through the roof. That's not helping your point, it's proving it wrong. Furthermore you brought up the pandemic which is not the issue here, MMT wonks can complain all they want about supply shocks and demand spikes but the inflation was already baked into the economy before Covid made landfall. Just stop, your pushing snake oil on unsuspecting readers. None of this claims to have all the answers, claiming an 40% increase in the money supply had no effect on inflation makes you not only suspect, it means you can be flat out ignored due to your ignorance.
Tired of all these Fed conspiracies. The Fed is not a profit-generating entity. Yes, it does buy bonds and collect interest payments, but it sends these payments back to the Treasury, it doesn't keep them for itself. The Fed has a dual mandate to support full employment and low inflation. It does not have a profit motive. As an effectively non-profit entity, the Fed doesn't have a market cap. It does have a balance sheet, the size of which is a good approximation of the cumulative level of assistance the Fed has provided to the markets over the past several years. "Free market at all cost" people want the balance sheet to be lower because they want to lose their savings and experience pain (masochism). MMT people want the Fed to print more and more money because the value of money is apparently not affected by supply and demand, only the ability of the state to collect taxes. The true optimal level of Fed support is probably somewhere between these two extremes. It's good to have a backstop to the financial system so that we don't lose our savings in a banking panic every 5 years (like most of US history between the national banks). It's also good to avoid enabling fiscal stupidity and deliberately causing hyperinflation.
BS. The debt does have a limit. Printing money does create inflation and MMT proponents admit that. It obvious and MMT just argues printing within parameters won't affect inflation. At a certain point it does. Taking on debt has interest payments due. Printing money to pay creates inflation which increases the interest payment on the debt. To pay the increase, print more money and so on. The inflation will crush the rest of the world which in turn will come back and bite the US. Nothing to do with confidence, just pure numbers.
My thesis against bitcoin is simple. Governments WILL NOT lose control of their currencies. Since money is really debt in this MMT system and the two are interchangeable, inflation is a necessary part of it. If another asset looks to be more promising and people flee to that asset, with one of the primary characteristics being "untraceable" and a "store" of value, it directly threatens a governments control over its currency as people will trade the fiat currency for the "physical" one (digital in cryptocurrencies). This happened already with gold. They will then outlaw said asset and you're left a criminal or holding an enormous bag. At least with physical, it's hard af to actually trace. These cryptocurrencies are not that at all.
I'm not an expert but doesn't MMT say that inflation is caused when demand exceeds production? Production decreased pretty dramatically in the pandemic with all the shutdowns and supply chain disruptions, so MMT economists would say this is the primary driver of inflation.
Technically, the last few years blew a hole wide open in some of the assumptions/foundations of MMT.
Modern Monetary Theory (MMT). If that fails, nothing like a good couple of strategic wars to reset everything.
Keep giving it away....debt is good. According to the far-left Modern Monetary Theory will get us through. This has been practiced in the background for quite some time. Fact that our cities are turning into dystopian wastelands One has to wonder if it's working. In short... >According to MMT, governments do not need to worry about accumulating debt since they can create new money by using fiscal policy in order to pay interest. https://en.m.wikipedia.org/wiki/Modern_monetary_theory
It may be possible to just keep borrowing. That's what Modern Monetary Theory says. I'm not sure that MMT is valid. I'm not sure it continues to work for a USD that stops being the world's favorite reserve currency. "Common sense" says that eventually debts are unsustainable, but the comparison is usually a family and a family doesn't generate its own currency. Common sense is often wrong. Many people making 100k per have a mortgage for 500k or more. A valid question is how much economic activity is purchased with federal expenditures. Yes, there are instances of waste, fraud and abuse. But cutting spending by a lot would be recessionary, no one has figured out a sure-fire way to cut waste, fraud, and abuse spending only. My best guess is that our current levels of debt increases can probably be worked around for at least another 50 or 60 years. And I don't see anything that would trigger an earlier end to the debt escalation.
WSB hears about MMT for the first time
MMT says this isn't a problem as they can always just pay it whenever they want as they control their own currency. Some may say "inflation" but they could also solve that as well if they wanted. The number is irrelevant at the end of the day.
Incredibly encouraging to see MMT seriously discussed in this thread, both in idea, and in direct naming of the theory.
Sounds like you've subscribed to MMT. Wiping out debt means US bankruptcy and a default which would obliterate the global financial system, but before we would get there US debt financing would become insanely expensive, bondholders aren't blindly buying US debt. We have also created issues for other countries with inflation, so much so, that BRICS is gaining steam (although I highly doubt they'll actually agree to a bloc currency). I agree with you on infrastructure spending. That was the solution in 2008/2009 instead of austerity.
The Democrats hot new theory is MMT; modern monetary theory. Debts irrelevant. Unfortunately, Republicans are too weak willed to do anything about it, and the praetorian guard media happily turns any possible moves to reduce the deficit into "they're pushing granny off a cliff!". Hyper inflation is coming...... it's just a question of when currency crisis.
The problem of “Printing It Away” lies in how the global bond market will respond to an inflating dollar. You’ll never really hear this on the news cuz errbody suckin on those juicy MMTitties, but even MMT theorists acknowledge inflation is a problem w mmt. Generally as the rate of money creation outpaces the rate of production, currencies inflate-even reserve currencies. That causes them to lose their attractiveness in the bond market, which causes rates to rise. If global demand (sovereigns, investor funds, banks, etc) doesn’t purchase all the debt we need to sell in order to fund the country, the Fed reserve picks up the tab (digitally creates the money to give to the treasury in exchange for the bonds that it holds on its books) This tends to create a bit of a reinforcing spiral, the Fed creates more money to pick up the tab, which inflates the currency, which weakens demand, which leaves more bonds for the Fed to pick up. As the Fed picks up more and more debt, the interest rates tend to rise higher, which causes the Govts interest payments to rise, as both the total balance owed rises, and the interest rate financing that debt rises. This causes a bigger portion of the national budget to go to interest payments. At this point, you either 1.) cut federal spending (hard choice, causes lots of short term harm, costs whoever does it their political career in the short term) 2.) keep printing to cover the gap, which is the easy choice, until it ends in a currency crisis, and all money is devalued as we construct a new currency. This already happened at Brenton woods (price of gold was pegged up, which devalued the dollar) and again in 71 when Nixon bailed on the gold standard, which really initiated the decline of the dollars purchasing power. So, kinda sort of, the dollar had already failed twice. You’re already seeing fewer and fewer purchases of US debt in the bond market. https://www.ft.com/content/7dada684-a6cd-413b-9adb-477b34a7a9f6 This “rock and a hard place” scenario is why there are so many banks projecting a near-certain recession. Hope this helps.
Read up on MMT. More simply "where did the money come from?". " Who is owed?".
Nah, my Econ is sound. You have just been drinking the MMT kool aid. Good luck out there. I genuinely hope you are around to hold the bag for me later.
It’s no conspiracy. People that follow MMT knew the market was bottoming October 2022 and knew that assets would rise through 2023. I made a post on my old account in March of this year when banks were failing and everyone thought the world was ending where I said it would be the last good buying opportunity under SPX 4000 for a while. I’ll admit I’m not the most well versed in MMT and get my information from others but they’ve been spot on for a long time now. Buy any dips because market is still going much much higher
In order to eliminate the debt you would have to crash the treasury market. We almost did this during Clinton administration then pulled back. Do some research into MMT. US “debt” means nothing. We could pay it off tomorrow if we wanted. We print the money ourselves and borrow from ourselves.
LMAOOO there it is. this genius looks to MMT. Amazing!
Depends what currency in what country. Like the US or China can use MMT because they are their own money. But a country in Europe has the ECB that makes it harder.
Agree that cutting government spending is not on the table. But taxation removes dollars from the system - thereby lowering the “too much money chasing too few goods.” I highly recommend reading the first chapter of Stephanie Kelton’s THE DEFICIT MYTH.” While I’m not all in by any means with MMT, she describes how our monetary system currently works better than anyone. Again, when the government receives taxes, it doesn’t spend them - it wipes the money off its balance sheet - it destroys dollars.
Yes but you can be against MMT and infinite deficits but pro spending right?
Are you not the guy railing against MMT, deficit doves, etc? The whole point of MMT is to increase spending and increase the debt.
It’s funny sitting back and watching the market unfold exactly as I predicted due to following fiscal flows and MMT. Meanwhile, bears are running around completely clueless and have 5 inch diameter blown out anuses. Just another day in the life of a certified genius
So an MMT enthusiast…the music is going to stop🎱
It didn't because of MMT. There's a certain amount of money you can print before inflation is a problem, and we were still below it.
It's not all about the fed number. It's about how the fed number affects other rates. Credit card rates are at an ATH right now and mortgages are the highest since the early '80s. The fed rate would actually be a lot higher now if it wasn't for MMT. Not that I expect you to understand any of the things I just said...
Modern stock market is modern-MMT taxing to pull money out of circulation and reduce inflation. Yeah the market has gone up 200% or whatever, but how many individuals have those levels of returns?
*MMT is nonsense. All you need to know is that governments on Earth will make up new rules and propose new theories to meet their need to stay in control.*