Are the Bernie Sander’s and AOC political promises being made based on MMT? Will this latest economic theory lead to the USA collapse of the USA dollar?
Should you worry about politicians discussing super inflation of your saved dollars as an incidental matter that is “causing a lot of excitement in the Democratic Party around some of these ideas?”
What are the ‘missing elements’ in MMT?
The Purpose of This Post
Is to wonder about the missing elements of current economist’s theory if Magical Money Tree and the present National Debt of 22 trillion dollars.
The rich rule over the poor, and the borrower is slave to the lender. (Proverb 22:7)
if you lack the means to pay, your very bed will be snatched from under you. (Proverb 22:27) hat’s My Point?
What’s My Point?
The current USA amount of 22 trillion dollars is unprecedented in world monetary history. Two previous Presidents have doubled the National Debt in the past two decades. Various economists’ advice given to past President’s, and now the latest theory of MMT, Magic Money Tree, is in opposition to King Solomon’s proverbial wisdom advice about debt.
In our contemporary times, instead of paying off debt, our economists expound magical theories that debt is actually good economics. Problem is that there are three missing elements the economists do not appear to consider.
What Three Elements?
Surety, trust, and the future value of the USA dollar.
Surety is the only reason holders of US dollars allow the USA to continue printing of dollars. Holders of USA dollars trust that they can use the dollars to buy USA assets such as farmland, businesses, and property. (Canada and Mexico forbid the sale of USA farmland to non-citizens.)
In other words, the future of USA is repeating the same circumstances that occurred in the past when the American Indians sold Manhattan Island for decorative beads. What the USA is doing is selling the USA for paper dollars.
If you consider the future value of the dollar will be as useless as the decorative beads with normal dollar inflation or worse, super inflation.
While the future value of USA assets will increase same as Manhattan real estate continues to do as the population grows in the future.
Which is going to be a worse result for both the rich and poor dollar savers?
In My Opinion
In a previous post, I linked a suggestion how to pay down the debt with another bloggers recommendation how to contain the National Debt.
My personal economic expertise is limited to two ancient college courses in economics and 50 years’ experience in manufacturing industry.
Read the articles in the Source Links below.
Should the USA National Debt be paid down, or the Magic Money Tree theory be implemented?
Which choice is based on Wisdom or Folly for the future of the USA?
Which political party will be blamed if MMT turns out to be another failed economic theory same as the ones used to run up the present 22 trillion-dollar National Debt?
Regards and good will blogging.
The National Debt, America’s Ticking Time Bomb
AOC Tax Idea
Bernie Sanders Economic Advisor on MMT
Magic Money Tree
Magical Thinking on Usury and Medicare for All
King Solomon, On Surety