Dear Friends,
It seems to me, the true beauty and deep pathological malevolence of Modern Monetary Theory, (MMT) is the fact it appears to give everyone what they want, like a Djinn, while ruining the world at the same time. If its proponents actually believed in it, they would call for an end to taxation, running the government entirely on money borrowed from the printing press. Today our professional class is entranced at the sweet simplicity that is MMT. They are enthralled by its possibilities, to advance the Administrative state… and thus the Oligarchy. Since it is all things to all people, (too good to be true) it probably has a negative side… other than that it advances the interests of the Administrative state. Let’s examine MMT, and see if it is a thing we want to embrace, or let be.
Milton Friedman’s theory of inflation is simple, subtract the growth in GDP from the growth in the total money supply, the result reflects true inflation or deflation. As I understand it, MMT is a theory of money that states… since the US dollar is the world’s reserve currency, the US is immune from hyperinflation. Being the world’s reserve currency means there is a nearly insatiable demand for dollars. Some for international exchange, (if a firm in France wants to trade with a firm in Japan, they need to exchange their Euros and Yen into dollars), others for central bank reserves, and many international bank accounts are denoted in US dollars. These advantages, along with others, are why the proponents of MMT believe the US dollar is so inflation proof today. It could pay for the dole.
Of course, there is a hidden part of that plan that seems a bit unjust to me, call me old fashioned but, any plan that moves wealth from the bottom to the top, not as a glitch but as a feature, is not human hearted. In MMT, money is printed, then the government borrows it at interest, creating two debt instruments. One, the borrowed dollar and the other, the bond that was created. The government spends that dollar enriching the crony class, while the bonds go to the banks to enrich them. The moment any money trickles down to the middle class, the government taxes it away, to balance the system. Oh, the psychopaths that rule us claim they are trying to “stimulate the economy,” but stimulating the economy is the farthest thing from their diabolical minds. Picking the economy’s carcass clean is their goal.
There are quite a few people that will be reduced to dependence on the state for survival by it. As dependents we are given sufficient stipend to get a tv, to grow roots into a couch, programming us what to think, as we wash down deep fried pig skin with high fructose corn syrup diluted in carbonated water with a few drops of flavoring stirred in. Addicted to opiates, to calm the emotional turmoil engendered by the cognitive dissonance, between our conscientiousness and lack of purpose. Our only use is as angry mindless voters every two years… to protect the power of those who have so reduced us, our life outcomes and that of our offspring. How like the way a Djinn grants a wish. Give us what we think we want, free money… by permanently denying us what we need, desire, and would make us whole.
That is what MMT is, a Djinn, one that grants ones wishes in a way that destroys the wisher. The poor believe they will get a bigger piece of the pie, the middle class get swindled into thinking the “rich” will be taxed, the rich get more wealth and power at cost of their very souls. Everyone loses while they stupidly think they are winning. Even if the proponents of MMT are correct, it will be evil even if it does work, because, the excess will have to be taxed back out of the system so it never creates runaway inflation or stagflation. The old myths of the Djinn were cautionary tales… about why one should be careful in wishing, because once in awhile we get what we wish for, and by doing so, lose everything we had. Perhaps it would be best then… not to trust a Djinn like MMT?
Sincerely,
John Pepin
