Markets MMT ray dalio

Ray Dalio: MMT (Or Something Like It) Is ‘Inevitable’

"It is inevitable that this shift will happen."

"It is inevitable that this shift will happen."
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7 comments on “Ray Dalio: MMT (Or Something Like It) Is ‘Inevitable’

  1. Anonymous

    “this time it’s different”

    Go bone up on your Minsky, Dalio.

  2. Anonymous

    I’ll give you one point, MP3 has a better ring to it than “fascism” but only because of the sorry state of our public education system.

  3. Check my thinking please. Traditional monetary policy worked in a period of increasing population, increasing standard of living and acted mainly as reins to pull in dramatic inflationary periods. It facilitated the normal growth of a “better” society. MMT works more as spurs on society given that the standard of living peaked sometime ago and we are below the replacement rate of population while the “pig in the snake” which is the baby boomer generation has weighed against consumption. Some say that MMT sets us on the road taken by Japan for almost a generation. Demographics of a aging population, lack of consumption of the elders, and achieving most of the best of standard of living makes us look exactly like Japan as the rest of the developed economies resemble us. Add the enhancements of technology to the deflation equation, MMT looks like the answer. It seems to me that it is the current easy answer. I don’t know if it is the best answer. Fighting demographic trends seems to be a losing proposition.

    • Unlike Japan , the US has run massive trade deficits for 30 years.
      2.Japan’s stock market topped out in 1989
      3 . Japan’s population has aged much faster than the the US is projected to age on the next 30 years.

  4. Another a la carte option to creating money and monetizing debt, is simply to shift more money and wealth into the hands of those with greater propensity to spend. Instead we are at the historic other edge of the spectrum with massive wealth tied up in a few hands and CEO’s making hundreds of times what their average employees make. This need not be radical, although I wouldn’t hate that, but according to the Fed the top 1% own 39% of the country’s wealth. If that could be cut in half, I believe a lot of this interest in MMT goes away.

  5. Under MMT what happens to the price of gold? What is it’s place in the world’s governments’ perceived value for backing it’s different monies?

    • Great question. I do not disagree that we are either intentionally or inevitably (without adequate planning) going to get into MP3. It would strongly behoove everyone, including ordinary retail investors, to understand how this will change the investment landscape, for gold and other asset classes. Especially for retirees, time will be limited to understand, act, and redirect and correct course as we enter this new world order…much more time sensitive than someone in their 30s or 40s.

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