OK since we are all confessing how easy it is to be wrong and how hard it can be to realize and then admit it

Here is a Topic I would like to introduce….Modern Monetary Theory .

To begin….I like this quote from NorthStar …just posted in a comment to Alfa8

“Keeping an open mind and being willing to change your views are hallmarks of a truly great human being”

I agree and would like to begin this discussion by saying I am reflecting on the following Thesis and theories which have been central tenants of most of us who gather here at the tent.

My early thinking is that …I can certainly see that dismissing this new Theory out of hand may be very wrong headed. Not only do I think it may have more validity than we could ever have imagined but I HOPE with all my might that it is valid !

Here goes. Here I am quoting from my own reply in an email exchange with a former poster here who keeps in touch who sparked this debate….by sending me some info on MMT.
“OK…we need to think about all this with an open mind and a clean slate.

You and I have been long term Gold Bugs and have been “indoctrinated” to believe in the Austrian School of Economics theory…the only “Honest and noble theory “…

That eventually printing money exponentially will cause the same kind of inflation Weimer Germany Experienced and we will all be transported back to the stone age.

And Gold will rise to the moon and all that . ALL fiat returns to its intrinsic value…zero ! And all that jazz.

We have been expecting this for 20 or 30 years or more ( 50….Nixon closed the Gold Window.)

BUT in spite of a seemingly infinite creation of fiat from thin air…this has not happened YET

Now we have the conditions which will really decide who is right Austrian Theory OR Keynesian Theory… and its latest iteration MMT.

What if this actually works….How can we say for certain that it will not….I for one am not smart enough to just dismiss this out of hand.

Times have changed….one thing for certain….EVERYBODY IN THE WORLD…WANTS THIS TO WORK…Everybody is ready willing and able to play along with this and MAKE it Work…and that is a huge reason to believe it can and maybe will .

NOBODY WANTS THE MAD MAX SCENARIO..except for a few grumpy old goldbugs….

Personally I am ready to let go of all my preconceived ideas and give this a chance…and actually cheer the attempt on.

The alternative is too dark to even consider IMHO…what do you think ?
Thank you for sparking this discussion …I intend to take it to the tent


MMT : https://www.investopedia.com/modern-monetary-theory-mmt-4588060


Warren Mossler : https://en.wikipedia.org/wiki/Warren_Mosler


Armstrong Historical Piece on MMT :https://www.armstrongeconomics.com/world-news/central-banks/modern-monetary-theory-v-central-bankers/


Now I am going to present another Email Thread I have had today with a group of members and former members who have for some reason included me in their discussion of the Notorious “Q”Anon….that of course is a pet peve of mine as I believe this is the most ridiculous conspiracy theory out there…(on this I have no open mind.).but I did a lot of research to come to this conclusion.

Anyhow one of the members of this email group sent us an email entitled ” Meet the New Fed Head… Donald Trump”

and showed a piece which actually I read and had to agree with !

Trump IS now in Complete Control of the FED !!

Of course I admitted that it looks like Q was right about this .. then I had to point out the following.


“Thank you for enlightening me. This is incredible ..What a turn of events !!!

Trump IS in control of the FED through the US Treasury.

But do you realize he is endorsing and using FULL BLOWN MMT ! Wow !

What is MMT ? Please read this link to refresh your memory


I would like to emphasize this paragraph and then please offer me your honest response to this

“Political leaders like Alexandria Ocasio-Cortez and Bernie Sanders have espoused MMT, and economist Stephanie Kelton, who first came across Mosler’s ideas on the listserv and is now arguably the face of the theory, serves as a senior economic adviser to Sanders.”

So what we have here is a COUP D’ETAT by the Far Left …AOC has now defacto taken over ….Democracy is DEAD

Long Live Socialism.

This is exactly what the far Leftists like Sanders and especially AOC have been demanding….

Free money for EVERYONE….next will be universal health care…they will demand it and Trump with his new found MMT magic wand will need to provide it after this Virus Epidemic decimates a good portion of Americans savings.

Who’s the Boss Now ?

Maybe Trump is their puppet…

How do you guys feel now that Trump has joined the far Left and is employing their remedies for the USA.

How do you feel now that he has betrayed his promise to pay down the debt .

How do you feel now that he is bailing out Wall Street and The banks and all the Billionaires and even small businesses and individuals…..

I though he was supposed to advocate for honest money..a new gold standard …and abolish the FED

He didn’t abolish it he just took it over and is using it to bail out the country with MMT …the tool of choice of AOC.

How does this feel….is he still your savior ?

Personally I find the irony Delicious

The Right and Left have finally aligned

The Rich and the Poor get bailed out…all at the same time…a Bipartisan effort…

The Virus has done the impossible !

Ha …you can’t make this stuff up


One last thing before we turn this over to the Round table

The estute member who sparked this debate has added something of great importance to this discussion.

The Eurozone :

This MMT stuff seems to be hinging all upon the Euro states right now as the independent countries within are NOT allowed to issue debt as such . ECB trying Eurobonds but central banks so far back and more negative rates will collapse them sooner than later. Germany kinda gave up by supplying money to keep banks from failing there which the Germans do not want to give money to Italy… but but may have to. If all the member states hunker down ,esp. with the virus lockdown, this may make them decide to leave the crutches of Brussels and print MMT instead of austerity from Brussels/ECB. Euro would crumble, usd spike and gold I don’t know . Money would flee to the DOW and hard assets like commodities so gold should catch a move as the central banks would be free from Brussels. All eyes on Europe. Germany proposing 1 year lockdown, Peeps gonna riot and chaos soon as they have lost all confidence in gov’t, yellowvests, china…..still festering so hard to imagine Europe/Euro staying together , not to mention Turkey released 2 million more migrants unto somewhere, we are all racists deep down so every country for themselves in my opinion. High us $ kill foreign priced debt repayments into one big ugly mess and then they rehash the currency basket. Trump even mentioned to ‘re-finance’ the debt a couple town hall meetings ago, maybe it would wash out then??? Oil stocks look as sick as gold ones now, big cleanout. Cheap gas but stay home eh! Miners even shut down mines so shortage/demand be only reason for a rise. I found some old notes from years back Armstrong wrote. Goes like this ‘ flight to dollar, interest rates to zero then move up sharply due to money supply”. Who’d a thunk? Ya I guess rates flip due to risk . He says 10-20% overnite no problem. Would I go borrow and spec build now ? Would the banks even give it to me, . Back to the Euro, central banks there don’t trust each other hence the FED 1 trillion day or else tits up. Lower usa rates hurt them more so eventually they default and gov’t pensions…. go poof. Yikes ,then strikes,protests…. hence the watch over there for MMT , split up and MMT forever I see as the next gig. Logically the Euro should crash, but …..! Thanks for the offer back in but shall pass as the squabbles get me nowhere with trading. Too many bowls as of late, price is moving average and old support/ resistance levels and nothing more needed. I gander Trump getting the army to build beds in arenas is him getting ready to say enough is enough and back to work as the peeps need freedom. Dow should flip up and dollar too. Dow level 15500 should be divergent low. Good conversing with you. MMT is unknown to most and the depths of it uncharted but if all gov’ts do it then it is all relevant to each and won’t matter book wise. Yup I’m ok and happy to see money to the peeps, last time Obama gave it to the banks and they squandered it so a good thing for mankind. Salud my friend !