Yesterday I discussed modern monetary theory (MMT) and how it’s become very popular in Democratic circles. That’s because it allows for much greater government spending without having to raise everyone’s taxes. And everyday citizens could get behind it because it promises to fund lots of programs without seeing their taxes raised. What’s not to like?
MMT supporters will point to 2008 and say, “Just look at QE. In 2008, the Federal Reserve Balance sheet was $800 billion. But as a result of QE1, QE2, and QE3, that number went to $4.5 trillion. And the world didn’t end. To the contrary, the stock market went on a huge bull run.We did
Remember tether? That’s a cryptocurrency that calls itself a “stable coin.” A stable coin says that its value remains constant against some other type of currency. In theory, this offers the benefits of cryptocurrency usage (anonymity, easy transfer abroad, etc.) without the volatility that comes from speculation and panics (bitcoin fell 80% in a matter
You’ve probably heard enough about Brexit by now. The famous U.K. referendum on whether to remain in the EU or leave (“Brexit”) took place on June 23, 2016, with a victory for the “leave” position. But the Brexit debate began even earlier when then-Prime Minister David Cameron announced the referendum as part of his election
If Modern Monetary Theory (MMT) were a quarterback down on the ground, someone would call a penalty for piling on. Ever since MMT started to get traction among the front-runners in the Democratic 2020 presidential race, mainstream economists and wealth managers have been lining up to call it “garbage” and explain why it won’t work.
Everyone is familiar with the traditional “run on the bank,” which has happened many times in real life and was memorably portrayed in the classic film It’s a Wonderful Life. It begins with a nervous depositor loudly demanding that all his savings be converted to cash and withdrawn from the bank. Other customers hear the demand
The list of policy and predictive failures by mainstream economists is longer than the typical 9-year-old’s Christmas list. They failed to foresee the 2007 mortgage bubble and the 2008 financial crisis. They cheered “green shoots” in 2009 when that was a complete illusion. They welcomed the “recovery summer” in 2010, which was nothing but