Last April I published in this column an article focusing on how money has been losing its intrinsic value during the last 40 years, turning in fact into fake money and creating the conditions that give way to huge trade deficits. I invite readers to check it before reading the analysis that follows.
This time I'll concentrate on the policies being promoted by the US and other governments following populist and "progressive" programs devised to gain voters and keep themselves in power.
Among the many errors that utopian socialism promotes (which transforms into "communism", "21st century socialism" or, more recently, into the so-called "progressive" policies proclaimed by populist leaders), we are suffering nowadays the syndrome of increasing budgetary waste. Such an irresponsible policy takes place through economic pirouettes that are bringing us closer and closer to the abyss of an overwhelming recession in the United States, which can plunge the world into chaos.
These "Progressive" politicians seek to hide the impending disaster through ingenious mechanisms that promote spending and conveniently hide its future consequences. In order to achieve their populist goals, they have developed the so-called "Modern Monetary Theory", or MMT for short. This deceptive Monetary Theory is gaining traction among high-profile US Democrats and "Progressive" politicians. Accordingly, they are looking for ways to finance humongous social and ecological programs that they hope to carry out in the future without having the tangible resources needed to do so. Considering the $22 trillion-and-growing debt –inherited from a policy of budgetary waste during the Obama administration, to the point of causing a public debt that doubled from 9 to 18 trillion dollars in eight years–, these politicians argue that the present monetary system is too rigid and constraining. Therefore, they firmly propose that something new is needed to provide more flexible and expandable financing. And, of course, their answer is MMT!Add a comment Leer más...