Snorting M&M’s
If you listen closely, you can hear the questions asking themselves.
After a dozen years, we know what happens when monetary policy is compelled to shoulder the burden of sustaining economic growth and inflationary momentum in developed markets scarred by a deep recession and plagued by structural disinflationary forces. The result, in short, is asset price inflation, an ever wider wealth gap, and limited benefits for the real economy.
Something had to give, and the pandemic brought forward th
Great summery and analysis H…. Expresses primary aspects of the discussion clearly and leaves the conclusions wide open for this society to mold as it sees fit…
I didn’t even know where I was going with this one at first, to be honest. I just started writing and stopped when it started raining on the back deck and I had to take the laptop inside. 🙂
Bitcoin unintended consequence is lower gold prices because that always gets trotted out. Gold to many is a barometer of what “the smart” people use to show things are getting out of control when “they” are destroying your money.
Fiat currency will win out and so will MMT but, taxes and interest rates will have to go up at a certain point to meet inflation. Yellen did mention coordinating corporate taxes with other developed markets.
Of late I seem to notice an increasing shift to the use of the term “fiat currency” as a pejorative expression. Money, on the one hand, is felt by many to be this fiat crap and everything else is somehow “real.” Make no mistake. All entities people consider to be money these days — dollars, euros, crypo of any kind, gold, digital accounts, etc. — are fiat money. They only exist if an important enough institution or group of individuals considers that they serve the functions of money and jointly believe they have the value assigned to them. There is no such thing as “real” money, although in the US only the official currency is, by law, “legal tender for all debts public and private.” In his book “American Gods” Neil Gaiman creates a fantasy world where one group of gods is disappearing while another takes its place. The premise is that “gods” only exist because people believe in them. Zeus and Baal are gone. Others have taken their place. In Peter Pan, Tinkerbell only existed as long as Wendy and the other children believed in her. Deities, too, are fiat entities we create and which depend for their power on our belief in them. Just sayin”