by
Adam Taggart
Podcast
by
charleshughsmith
Executive Summary
- The siren song of “free money” programs like MMT and UBI
- Why these are financial “roach traps”
- The inevitable inflationary end of our current trajectory
- What to invest in to protect your wealth
If you have not yet read Part 1: Could Modern Monetary Theory (MMT) Actually Save Us?, available free to all readers, please click here to read it first.
MMT is a financial Roach Trap — it’s impossible to back out of MMT once it’s launched. The demands for more spending will skyrocket, and there will be no politically viable way to say “no” to additional spending.
The initial surge of spending will likely be highly successful: as trillions of dollars gush into the economy, spending and tax revenues will leap and the illusion of sustainability will be anchored in the public’s mind and in the media: look, MMT is working just like we said it would! Inflation is still tame.
Yes, inflation will be tame for a brief honeymoon, as inventories can be drained without raising prices. But once the higher demand races through the supply chain, prices will rise in correlation to scarcity, competing demands, etc.
One can easily imagine the land rush of special interests and constituencies to demand a new piece of the “free money” pie in this honeymoon phase: “free” medications (at full Big Pharma prices, of course); “free” university (at full tuition, of course); “free” childcare; “free” Social Security increases, and so on in a tsunami of demands.
Once inflation starts rising, the current rigged methodology of the Consumer Price Index (CPI) will mask it for a time, just as it does now. But eventually, reality will break through the artifice and… (Enroll now to continue reading)
Life Under MMT: A Self-Reinforcing, Inflationary Feedback Loop
PREVIEW by charleshughsmithExecutive Summary
- The siren song of “free money” programs like MMT and UBI
- Why these are financial “roach traps”
- The inevitable inflationary end of our current trajectory
- What to invest in to protect your wealth
If you have not yet read Part 1: Could Modern Monetary Theory (MMT) Actually Save Us?, available free to all readers, please click here to read it first.
MMT is a financial Roach Trap — it’s impossible to back out of MMT once it’s launched. The demands for more spending will skyrocket, and there will be no politically viable way to say “no” to additional spending.
The initial surge of spending will likely be highly successful: as trillions of dollars gush into the economy, spending and tax revenues will leap and the illusion of sustainability will be anchored in the public’s mind and in the media: look, MMT is working just like we said it would! Inflation is still tame.
Yes, inflation will be tame for a brief honeymoon, as inventories can be drained without raising prices. But once the higher demand races through the supply chain, prices will rise in correlation to scarcity, competing demands, etc.
One can easily imagine the land rush of special interests and constituencies to demand a new piece of the “free money” pie in this honeymoon phase: “free” medications (at full Big Pharma prices, of course); “free” university (at full tuition, of course); “free” childcare; “free” Social Security increases, and so on in a tsunami of demands.
Once inflation starts rising, the current rigged methodology of the Consumer Price Index (CPI) will mask it for a time, just as it does now. But eventually, reality will break through the artifice and… (Enroll now to continue reading)
by
Chris Martenson
Executive Summary
- Why we know that something really BIG has the Fed freaking out
- Why the risk of systemic breakdown is uncomfortably high
- The key charts that tell the tale: recession ahead!
- Why, this time, the Fed will fail
If you have not yet read Part 1: The Fed Is Lying To Us , available free to all readers, please click here to read it first.
Touring through the global and domestic US macro economic data, it’s easy to determine that mounting recessionary forces are in play.
Everything from sentiment, import/export data, (the lack of) credit growth, shipping rates — all are in alignment; the economy is weakening.
The responses of the Federal Reserve and Donald Trump are in alignment on one facet of the story; both desperately want the US stock markets to go higher. Trump applies strategic Tweets each day to that effect, and the Fed is printing $2 billion a day in their effort to cause stocks to go higher.
I think they fail this time. Adding up all the data and risks and I clearly see that…(Enroll now to continue reading)
Why The Fed Will Fail
PREVIEW by Chris MartensonExecutive Summary
- Why we know that something really BIG has the Fed freaking out
- Why the risk of systemic breakdown is uncomfortably high
- The key charts that tell the tale: recession ahead!
- Why, this time, the Fed will fail
If you have not yet read Part 1: The Fed Is Lying To Us , available free to all readers, please click here to read it first.
Touring through the global and domestic US macro economic data, it’s easy to determine that mounting recessionary forces are in play.
Everything from sentiment, import/export data, (the lack of) credit growth, shipping rates — all are in alignment; the economy is weakening.
The responses of the Federal Reserve and Donald Trump are in alignment on one facet of the story; both desperately want the US stock markets to go higher. Trump applies strategic Tweets each day to that effect, and the Fed is printing $2 billion a day in their effort to cause stocks to go higher.
I think they fail this time. Adding up all the data and risks and I clearly see that…(Enroll now to continue reading)
by
Adam Taggart
Total 6347 items
