Deficits

Don’t Matter?

Bernie Sanders' 2016 economic advisor Stephanie Kelton

 Modern Monetary Theory and the 2020 race

DYI:  Despite the fancy name of Modern Monetary Theory – MMT – it’s the same old dance of the idea that deficits don’t matter.  Well they do matter and matter a great deal.  As the national debt continues to increase the carrying cost from the interest expense ramps up; eventually choking off the entire budget simply to pay the largest holders of the debt.  Who are they?  Bankers; which of course is owned by the elites.  This is transference of larger and larger portion of our tax dollars into their hands something this economist failed to express.

Also not mentioned is asset inflation due to aggressive budget deficits.  This has “jacked up” stocks, bonds, and real estate significantly reducing returns going forward to sub atomic low levels for stocks and bonds.  Young people attempting to purchase their first home are finding themselves “priced out” of the market despite historically low interest rates.

The biggest topic that was not mentioned is energy as this economist believes that only money is what propels the economy.  No matter how much “pump priming” as long as the cost of energy extraction continues to increase you will have a sluggish economy.

Another economist from the crowd that thinks that you can get something for nothing; with no ill effects.

 DYI