Fake money produces a fake economy BILL BONNER
1. The Fed would never voluntarily normalize monetary policy.
2. The Donald would never go Full Retard on his trade war with China.
3. Republicans and Democrats would both come to embrace Bernie Sanders’ Modern Monetary Theory (MMT).
In short, the president thinks we need more stimulus! “Like one point…”
One thing is becoming very clear. For all the effort Donald Trump puts into being spontaneous and erratic, he is actually very predictable.
When it comes to financial matters, he will always go for EZier money, lower rates, more spending, and bigger deficits. After all, he’s a “low-interest guy.”
And this confirms our theory of history. When an empire reaches the edge of a cliff, it will always find leaders to give it a push. This is the hour. Donald J. Trump is the man. History is being made.
People always come to believe what they must believe when they need to believe it.
And if you’re at the tail end of a credit-fueled bubble… with an overpriced stock market… a trillion-dollar federal deficit… and $72 trillion of debt (total U.S., public and private)… What are you going to do?
Admit that you’ve been a damned fool? Fess up that you’ve made a mess of the economy and that it would have been better just to leave it alone?
Cut spending and drain The Swamp?
Or, come up with some loopy idea that allows you to keep the jig going… and get even more of what you really want – other people’s wealth?
The feds create no wealth. And there’s no such thing as a free lunch or a stimulus program. So whatever the feds get or spend must be taken away from someone else. MMT provides a gauze of semi-coherent claptrap to cover up the larceny.
Creating and allocating money, credit, and spending is, of course, just another way of telling people what to do and keeping them in line, by cutting them off if they don’t do it.
It’s what the Soviet Union did. And Nazi Germany. And Mao’s China. It’s what all the 20th century’s “isms” – communism, Chavism, Peronism, national socialism, syndicalism, collectivism – did. It’s what all governments do – if they get the chance.
Money is time. Time is life. MMT is just the latest swindle to take it away.
Our battle has never been with conservatives or liberals, Democrats or Republicans… Keynesians or monetarists… Chicago boys or Austrians…
…Our fight is with claptrap, whether dressed in a fine Italian suit… or grimy overalls… whether from a Nobel-winning economist, or a neighborhood loudmouth…
…whether from a clown on the street… or a clown in the White House…
And it is a losing battle.
Over the entire time we have been writing, claptrap has increased, growing in power and popularity every year. We see it everywhere, but we confine our analysis to economics and finance, where there is plenty of claptrap to keep us busy.
Not that we know truth or have any better idea of what will happen than the next guy.
Nor have we any plan… or ism… (or hope) for making the world a better place. The best we can do is look for fraud, scam, and flimflam – and laugh at it.
And now we seem to have reached some kind of Maximus Summa… a ne plus ultra… for claptrap.
The Fed is ready to cut rates again – just like it was 2008 (if only it had some rates to cut!) Republicans and Democrats are ready to spend, spend, spend… just as if they didn’t already have a trillion-dollar deficit…
…and now… if this weren’t enough… the jackasses have come up with an idea – Modern Monetary Theory (MMT) – so lame and irresponsible, it erases 5,000 years of painful lessons.
The feds control the money, say the MMTers. So, as long as nothing bad happens, they can print and spend as much as they want. And, since inflation is currently “subdued,” many MMTers say the feds aren’t spending enough!
You can readily see why this claptrap will be popular in Washington – with both parties. And yes, you can print, print, print… and spend, spend, spend… until something bad happens.
But sooner or later, you’ll wish you hadn’t.
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