We Are All Modern Monetary Theorists Now

As a consequence of loose monetary policy with a fiat currency, the United States is rapidly descending into an economic reality of Modern Monetary Theory, or MMT.  While MMT (also known as Chartalism) is typically associated with its Keynesian predecessor and the policies of the Left, new developments reveal that both parties are responsible for the slip into a brave new economic world.

Essentially, there are four preconditions in Modern Monetary Theory:

1) Money enters the economy through government spending, as the total amount of money is constrained not by gold but by the total output of the national economy;
2) Government spending is speculative as it prints as much money as it needs to control production and, as a byproduct, employment, and spending beyond productive capacity leads to inflation;
3) Taxes do not pay for expenditures but are instead a way to throttle private sector demand; and
4) The government is the issuer of the currency, sovereign governments that issue their own currency are never insolvent, so debts essentially don’t matter.

Today in Liberty: Obama’s approval rating tanks, Kerry deals with “apartheid” fallout

“Your mountains are breathtaking, your coffee is fair trade, and everywhere you go you hear the sound of f**king ukuleles. That’s all very charming until you waste tens of millions of dollars of taxpayer money on a website that doesn’t work.”John Oliver on Oregon’s Obamacare website

— WaPo/ABC poll brings bad news for Obama: A new Washington Post/ABC News poll released this morning finds that President Obama’s approval rating has taken a nosedive. “The poll shows Obama’s approval rating is down to 41 percent, a point below its previous low of 42 percent, in November,” the Washington Post reports. “The president’s disapproval rating is at 52 percent, three points lower than the previous high. Six percent have no opinion on Obama.” #PANIC #DOOM

— Yeah, that Obamacare “boost” is gone: the WaPo/ABC News poll also found that the boost President Obama got from the Obamacare enrollment numbers is gone, just a couple weeks after he spiked the football at a White House press conference. “Following some rare good news about the law — including meeting its sign-ups goal despite a rough launch— 44 percent of voters approved of his handling of it. That number is now down to 37 percent, with 57 percent disapproving,” the paper explains. “Views of Obamacare overall have also dropped after a slight boost. While 49 percent approved of the law last month, 44 percent approve of it this month — the lowest that number has been since November. Forty-eight percent of Americans disapprove of the law.”

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