Sunday, April 28, 2019

AOC's Tool of Economic Collapse

"Modern Monetary Theory" sounds.......ahh........modern, and really!!

But like most of AOC's pet causes, it's a fraud.

...MMT proponents seem to believe that issuing money is, and will always remain, a state monopoly. But when one considers money, one looks at it first as a means of payment (which can be, and often is, organized by the state). And second, one looks at the value of this money. This second aspect (at least outside totalitarian communist states) can never be determined by the state. The value of money is, and has always been, determined by myriads of transactions, each taking place freely between two or more individuals. Thus, the supply of money can be controlled by the government, but its value cannot. This implies that money is a common good, and can never be a tool of the government.
In fact, of the three functions of money—means of payment, unit of account, and store of value—the only one that MMT proponents seem to consider is the means of payment, which the government guarantees by using brute force. This probably explains why previous examples of MMT—Venezuela, Zimbabwe, the Weimar Republic, Revolutionary France—have tended to lead to tyranny or economic collapse, or both.
Economic collapse follows because, in such a system, the unit of account function breaks down, leaving the population to resort to barter. But economic collapse also happens because the main damage is sustained by the store of value function, especially when it comes to international transactions. It’s as safe a bet as you can make that foreigners will not be very keen to stockpile the bank notes (or government debt) of a country openly embracing MMT.
As a result, any country implementing MMT will have to maintain a current account surplus at all times. Very likely, international trade with the country will tend to drift towards barter. Inside the MMT country, a black market in foreign bank notes, gold and diamonds will spring up almost immediately. And corruption will go through the roof, because when civil servants are in charge of awarding import permits, the first thing any importer has to buy is the civil servant....

Whether it's AOC of the CowFart, or any of the rest of the Government--including Republicans--we dare not trust them with "MMT."

And--just a reminder--THAT is why the 2A was invented.

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