{"id":45337,"date":"2019-04-13T08:43:53","date_gmt":"2019-04-13T13:43:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45337"},"modified":"2019-04-13T08:43:59","modified_gmt":"2019-04-13T13:43:59","slug":"lacy-hunt-blasts-mmt-and-speaks-of-hyperinflation-if-implemented","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45337","title":{"rendered":"Lacy Hunt Blasts MMT and Speaks of Hyperinflation If Implemented"},"content":{"rendered":"\n

Lacy Hunt Blasts MMT and Speaks of Hyperinflation If Implemented<\/a><\/h3>\n\n\n\n
\"\"\/<\/figure>\n\n\n\n

In the Hoisington First Quarter Review, Lacy Hunt blasts MMT as “self-perpetuating” inflation.<\/p>\n\n\n\n

Please consider the Hoisington Investment Quarterly Outlook<\/a> for the first quarter of 2019.<\/p>\n\n\n\n

MMT Leads to Hyperinflation<\/strong><\/p>\n\n\n\n

Under existing statutes, Fed liabilities, which they can create without limits, are not permitted to be used to pay U.S. government expenditures. As such, the Fed\u2019s liabilities are not legal tender. They can only purchase a limited class of assets, such as U.S. Treasury and federal agency securities, from the banks, who in turn hold the proceeds from this sale in a reserve account at one of the Federal Reserve banks. There is currently, however, a real live proposal to make the Fed\u2019s liabilities legal tender so that the Fed can directly fund the expenditures of the federal government \u2013 this is MMT \u2013 and it would require a change in law, i.e. a rewrite of the Federal Reserve Act.<\/p>

This is not a theoretical exercise. Harvard Professor Kenneth Rogoff, writing in ProjectSyndicate.org (March 4, 2019), states \u201cA number of leading U.S. progressives, who may well be in power after the 2020 elections, advocate using the Fed\u2019s balance sheet as a cash cow to fund expansive new social programs, especially in view of current low inflation and interest rates.\u201d How would MMT be implemented and what would be the economic implications? The process would be something like this: The Treasury would issue zero maturity and zero interest rate liabilities to the Fed, who in turn, would increase the Treasury\u2019s balances at the Federal Reserve Banks. The Treasury, in turn, could spend these deposits directly to pay for programs, personnel, etc. Thus, the Fed, which is part of the government, would be funding its parent with a worthless IOU. <\/p><\/blockquote>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Lacy Hunt Blasts MMT and Speaks of Hyperinflation If Implemented In the Hoisington First Quarter Review, Lacy Hunt blasts MMT as “self-perpetuating” inflation. Please consider the Hoisington Investment Quarterly Outlook for the first quarter of 2019. MMT Leads to Hyperinflation Under existing statutes, Fed liabilities, which they can create without limits, are not permitted to be used […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,303,413,426,17651,14648,13390,24043,17970,8697,536,3650],"class_list":["post-45337","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-hyperinflation","tag-inflation","tag-lacy-hunt","tag-michael-shedlock","tag-mishtalk","tag-mmt","tag-modern-monetary-theory","tag-monetary-base","tag-money","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45337"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45337\/revisions"}],"predecessor-version":[{"id":45338,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45337\/revisions\/45338"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}