Modern Monetary Theory Part 1
Money does not grow on trees.
Modern Monetary Theory, which I’ll refer to as MMT, is an economic framework in which federal government spending is not constrained by revenues. In other words, government spending isn’t limited by taxes and borrowing because they can print as much money as they need. MMT operates contrary to Biblical financial wisdom. The most alarming part of this theory is not the fact that some academics believe in it but that we’re already practicing it! Without a vote or a national debate, it appears that MMT is now woven into the thinking of those governing the printing presses. In the Presidential Debates prior to the election last November, our dangerous fiscal situation was notably absent from either side of the platform. ‘Spend more, borrow more, and print more’ seems to have bi-partisan consensus. The only real debate is who gets the money!
Did you receive a stimulus check? Millions of Americans did – both dead and alive. Did your business, school, church, or charity receive a loan or a grant as a part of the Payroll Protection Program? All-in, the US government created and distributed trillions of dollars to stave off an economic collapse created by mandatory Covid restrictions. America has a long-term problem with federal debt. At the beginning of last month, our national debt hit the $28 trillion mark. Now compare that with our approximately $21 trillion in GDP, and you realize that our debt is more than 133% of our annual economic output! The math simply does not work!
In my new book, Seven Gray Swans, I describe potentially significant events that could happen. A gray swan is an obvious danger that we tend to ignore. My goal is to show you how to prepare for and survive these economic threats. You can find it online at Amazon.com.