Bill Dudley Slams MMT: “It Failed In Germany, Venezuela And Zimbabwe”
While there has been much disagreement among the financial elite about the ultimate consequences of central bank activism and market manipulation, with some – usually those who do not manage money for a living and are not paid by investors – predicting fire and brimstone, while a separate, far more optimistic group expects the world’s greatest experiment in monetary policy to somehow have a happy ending, when it comes to socialism disguised as monetary policy, besides a certain, politically-influenced fringe, the condemnation against “helicopter money” wrapped in a convenient political wrapper has mostly been uniform.
We are talking, of course, about MMT, which stands for Modern Money Theory, but would make far more sense if it stood stand for Magic Money Tree, as the theory effectively espouses unlimited money printing and skipping central banks as intermediaries in money creation which, however, the theory claims does not result in hyperinflation because, somehow, taxation manages to limit the amount of money in circulation and the result is monetary utopia.
It is therefore hardly a surprise that MMT has emerged as the pet financial theory for such socialist politicians as Bernie Sanders and Alexandra Ocasio-Jones (the biggest proponent of MMT is finance professor Stephanie Kelton who previously worked on Sanders’ presidential campaign and was a “chief economist for the Dems on the Senate Budget Committee”), who get to promise their potential voters pretty much everything while also vowing not to worry about the insane costs that delivering “everything” would entail (AOC’s Green New Deal is said to cost over $6 trillion and according to some, the bill would be north of $20 trillion).
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