Your response is the textbook example of a straw man argument. No one is suggesting that creating money will magically make resources appear in the private sector. MMT simply says that the real spending constraint "IS" the available resources, not the money supply.

When resources are scarce it becomes a moral question of giving the people sufficient money to purchase them or to deny the people in order to balance a mostly meaningless number. The shortages come first, inflating "prices" (not the currency) and the creation of money is a following event in the economy. Once supply chains are re-established/re-organized the free market will resolve price issues.

No system can avoid bad monetary policy or poor fiscal management and MMT is no different. It simply describes the correct order of events under various currency regimes. Pinning a currency to a commodity or another nation's currency is always limiting to the ability of the state to manage its economy.