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Wall Street Journal says ‘we are all Modern Monetary Theorists now.’ If so, we will be hyperinflation victims tomorrow.

Posted by John T. Reed on

The second editorial in today's WSJ has the call out, "we are all modern monetary theorists now."
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That is a take-off of a misunderstood statement by Milton Friedman that “We are all Keynesians now.” The late Friedman would likely be raving against the hyperinflation threat pose by our current national debt to GDP ratio, now up to 117.76% compared to the all-time record of 122% after WW II and the Korean War.
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Keynes was not even a Keynesian. He was a famous economist and economists get their greatest recognition when they give intellectual cover to politicians who want to use taxpayers money without limit to buy votes.
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Keynes' version of "modern monetary theory" was that the government should spend without limit during recessions and depressions to fix the economy. Bull! Government should shrink to it pre-Depression size and stay the hell out of the way of the economy.
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Modern monetary theory, abbreviation MMT and described as the “magic money tree” is a creation of AOC and the Squad. Actually some obscure dishonest economist created it to be acclaimed by the Dems for giving them intellectual cover for spending trillions we don't have putting AOC in charge of a socialist welfare state.
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The Journal editorial manages not to manage the word, "inflation." They say the danger is huge tax increases.
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Total bullshit. As I have often said here, the tax revenue of the US federal government is about 19% of GDP no matter what the chattering political people do with the marginal tax rates.
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What will happen is we will get hyperinflation. If that somehow holds off the tax revenue in 2021 will drop from about $3.5 T now to about $2T because of the drop in GDP. The elected officials will frantically try to find someone to tax to get that deficit and will ultimately give up and do what they always do in the 21st century: tax the only Americans who cannot vote---those now under 18. Taxation without representation.
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They will do this by "printing" an amount of money that exceeds the total U.S. tax revenue of $3.5 T as they have this year.
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Just for perspective, to join the Euro Zone, your deficit spending must not exceed 3% of GDP. The US deficit in the current fiscal year exceeds 89%! That we are doing this is reminiscent of Hitler’s Big lie theory. If the lie is big enough, people will assume it must not be a lie because no one would have the guts to tell such a big lie. Trump and Congress are currently telling us the 89% of GDP spending is okay. It’s okay like smoking in a fireworks factory is okay.
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This will inevitably lead to hyperinflation. The politicians will then turn that one day nightmare of destruction of all dollar-denominated assets into to a year or two of starvation and revolution by way of the five bad laws: capital controls, price controls, rationing, anti-hoarding laws, and financial repression laws.
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That will end overnight a year or two out when the federal government introduces a new currency that the public trusts, or we will simply allow Americans to use foreign currencies that are not hyperinflated.
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Am I the only one saying this? Apparently. Shouldn't some Nobel Prize winning economist be saying it? If that is a legitimate academic discipline. But it is not. It us the dismal science, one where its supposedly honest practitioners have adjectives like Democrat or Republican or conservative or liberal in front of the word "economist."
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Ever heard of a conservative mathematician? Or a liberal chemist?
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Get my book and get your ass in gear. If I still have any readers who think I am crying wolf to sell books, I will be 74 in July. We are multimillionaires and have a good shot at remaining so adjusted for hyperinflation. We do not need your book purchase. It will not change our lives. We will not notice it on a day-to-day basis.
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If you do NOT read it and heed it your life will damned well be changed. And if you do read it and heed it, and we somehow do NOT get hyperinflation, no harm no foul. The cost of my approach is akin to buying a homeowners insurance policy. As with those, you will for sure get some peace of mind and you are out the premium.
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The nation has lost its fiscal and monetary mind.you may not even speak the word "hyperinflation" as we careen full speed toward it.
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https://johntreed.com/…/john-t-reed-s-book-on-hyperinflatio…

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