"Those familiar with Modern Monetary Theory (MMT) know that the natural FFR is 0% and is only higher due to the Federal Government’s decision to match deficit spending with bond issuance and the Fed’s decision to pay interest on reserves, neither of which are necessary. "

Federal deficit spending is not "funded" by bond issues as most people assume via their own budget experience. The reality is simply that there is no money in the system available to purchase bonds without such deficit spending. This is not an encumbrance on our future productivity, but the result of our past productivity that allows for a store of value for our commerce.

Unless the government maintains a level of deficit spending that is fair compensation for the resources and labor it utilizes in the private sector it effectively steals them from its own citizens. A government that levies a tax on its people must be responsible for enabling the payment of such tax in the unit of account it demands while leaving behind enough to provide for such a store of value and a reasonable rate of interest to fund its banking system. Any less is only masked by continuously increasing GDP to enable such interest to be rolled over, which is the primary cause of bubbles and busts (and bank profit).