I think the big fat conceit here, is that MMT can control asset prices (or hey, name the metric) with monetary/fiscal policy in perpetuity. This conceit ignores the possibility that such machinations can/are/will undermine the very faith in the currency or of the central bank itself.
Because a vibrant economy that provides for the needs of the citizens is somehow detrimental to faith in the unit of measure that denominates its transactions?? Do you even think before knee-jerking such dribble?
If you are talking about the bond market you should know that the monopoly issuer of a sovereign fiat currency that only accepts debt in its own currency doesn’t need that debt to fund its spending. Treasury debt now serves no function except to set interest rates and to provide secure savings vehicles. It is simply another form of money with less liquidity. Think of your checking and savings accounts with Treasury debt represented by savings. It is the fact that Treasury can never involuntarily default on its debt that makes it the preferred depository of excess reserves in the world, not the amount of debt.
Government-run currencies are not permanent, unassailable constructs. Most of them have a lifetime measured in dog years. The best are doomed to fail — and the concern I have is that increasing the amount of eggs into the central banker’s basket is a surer path to destruction than letting asset prices self-discover.
What modern economy doesn’t use “government-run” currency? I know of none. A dollar is a tax credit. The government agrees to take a dollar to extinguish a dollar of tax liability. So taxes are what both drives the dollar and what gives it the value gold bugs so crave. A sovereign nation's ability to levy a tax in its own currency is all that keeps it up.
MMT is simply a description of how such economies and their currencies interact. It is not some new-fangled method that needs to be implemented and it is about a lot more than just increased spending. We are already using MMT, only very poorly. MMT proponents represent the spectrum of ideology, from ultra-conservative bond traders to the most liberal advocates of safety nets.
I’m also pretty skeptical of a school of thought that looks at every one of is failures and says, “oh that wasn’t real MMT” or “we didn’t MMT hard enough!”
To my knowledge, there is no economy utilizing the teachings of MMT, so those claims are likely valid. Too many people assume that every instance of spending more than is collected is the result of MMT thought. Nothing could be further from the truth. MMT clearly defines limitations to spending based on available resources, not meaningless numbers.
Wait… what is this currency even worth if there’s no rhyme or reason to how it’s created, or how it’s taxed, or where it comes from, and especially: who’s getting it by the billion?
You obviously have no correct knowledge of what MMT is, or how it applies to our monetary system and are simply looking to enlist any too lazy or stupid to research and learn. For what purpose? To validate your assumptions with the approval of the ignorant and extend the status quo? Are things that good for you? You certainly don’t lack the capacity to understand.
