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Yes, we are being led to the SLAUGHTERHOUSE because of the lunacy of such "modern" "economic" "theories" and because of that Chipmunk Ben Bernanke who back in 2009 proudly said "We are sailing into uncharted territory now...!"
Modern Monetary Theory makes no sense to most economists, yet it has been accepted. Governments like it because it says there are no limits to creating and spending money.
But MMT still doesn't make sense, and it has to ultimately result in disaster. Just that no one can know when.
It isn’t as much what you post , it is how much you post the same stuff over and over ad nauseam….
Complaining and whining daily accomplishes nothing …no one can change a thing …complaining over and over is futile..it reaches a point few really care what you spew about the fed because it is the same stuff over and over and it is what it is.
Don’t like it , leave the country, problem solved
If he's saying the same thing over and over, why do you read it over and over?
If something bad is going on, being aware of it and talking about it MIGHT help to change it. You don't want to change it, because it keeps stocks inflated.
The Fed and the government have been influenced towards MMT, and they could be influenced away from MMT. It all depends on what they hear from the majority of experts.
The gold standard is unworkable. There's not enough gold to cover the amount of money in circulation. It also ruins liquidity, reduces the ability of people and businesses to raise capital, and is all in all a "really bad thing"
Were you alive in the 80's in Texas? My parent's mortgage was 11 percent. Their house payment was more than mine now, on a loan amount one third of mine.
Sure eliminate the Fed because the boom and bust cycles of the pre-Fed era were so much better. That's sarcasm. The Great Depression was largely caused by a lack of liquidity. There was literally no cash anywhere. I don't want to return to those days, why do you?
Life sucks, there is no way around that. Just because things were sometimes bad before doesn't mean it's ok to print infinite amounts of magic money.
And you're right, we can't go back to the gold standard. But the Fed still can, and is supposed to, limit the money supply.
Maybe that is true, but there needs to be some standard to stop the FED from willy nilly just bond buying by creating money out of thin air. I mean my god the FED just throws $4 trillion out of thin air in response to covid when it was not at all a liquidity crisis threatening the future runaway inflation. And they cannot just pull back so easily. If they try and sell the bond on their balance sheet and few or no one buys them we are in huge trouble.
I mean let a recession happen. They got to stop this line they will keep printing money until full employment is achieved. I mean why did they not do that in 1990-1991 recession, or 2000-2002 recession when unemployment both times was not bad but not super full employment.
We have 5.8% unemployment now and yet they insist we are no where near full employment where as we had 6.X% in 2003 and they were not printing money like this. 5.8% to 6% unemployment rate is pretty good or at least ok. Even 7% is not that bad.
But it seems since 2008-2009 happened, they respond by printing anytime there is the slight whiff of a recession or a recovery that is only solid but not super good enough.
If they stop printing money the whole house of cards implodes.
Modern Monetary Theory makes no sense to most economists, yet it has been accepted. Governments like it because it says there are no limits to creating and spending money.
But MMT still doesn't make sense, and it has to ultimately result in disaster. Just that no one can know when.
Been accepted by whom? MMT is wishful thinking, not a policy being used.
The Treasury is borrowing the money, Congress suspended the debt ceiling limit due to COVID until 31 July 2021, that is the Treasury actions to cover Congress spending. The treasury will have to resort to using tricks to cover interest by such tactics as borrowing from other accounts if something is not done by then. Treasury debt is causing the current issues here - similar forces in other countries.
What is really funny is that the OP complains about Fed actions and ZIRP then links an article that has Deutsche Bank complaining about Feds planned inaction and allowing higher rates - can't have it both ways.
Somebody needs to warn people not to follow Deutsche Bank analysts. Wall Street conventional wisdom whose recommendations lead to inferior results. The Fed needs to taper and bump Fed Funds up, but they're moving slowly in part because Powell's up for re-appointment, so won't happen until next year. But with 10 year yields having moved up over 1.5%, the long bond market is preparing for this.
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