| From the Desk of Don Yocham:
Money for Nothing
There's a new religion sweeping the halls of Washington.
Its evangelists call it Modern Monetary Theory, or MMT for short. But Magic Money Thinking seems more on point. Because the only constraint it places on spending depends entirely on the willingness of politicians to exercise discipline should inflation rear its ugly head, assuming they see it coming in the first place.
I know… laughable.
In any case, rather than focusing on the conditions that create prosperity in the first place, the pressure is growing to conjure it out of thin air. And as the spiraling cost of order drives the entire political spectrum to demand increasingly more money to maintain it, the flawed logic of MMT provides the badly needed intellectual cover for politicians of all stripes to throw open the flood gates and fund their goals.
And that takes us in only one direction – inflation.
Not the run-of-the-mill kind. Not the self-correcting kind. But the panic, buy-what-you-can-and-dump-your-dollars kind.
The inflation we're seeing today is just a taste of what's coming. As the consequences of the meddler's mandates and malinvestment pile up, money for nothing will provide a last resort to prop up even more costly promises on their unwitting constituents.
But those promises are an illusion… |
|
|
|
| Disclaimer & Disclosures
The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
|
|
|
|
|
|
This email was sent to edwardlorilla1986.paxforex@blogger.com by Long Weekend | |
|
|
|
|
No comments:
Post a Comment