“In Goethe’s 1831 drama Faust, the devil persuades a bankrupt emperor to print and spend vast quantities of paper money as a short-term fix for his country’s fiscal problems. As a consequence, the empire ultimately unravels and descends into chaos. Today, governments that have relied upon quantitative easing (QE) instead of undertaking necessary structural reforms have arguably entered into the grandest Faustian bargain in financial history." - Scott Minerd “Global CIO Outlook”, August 21, 2012 https://www.zerohedge.com/markets/f...-experiencing-end-game-great-debt-super-cycle
you know why ET, or any other places for that matter, is full of sentiment like this - Fed is bad, rise is artificial, the collapse is near. you know why - the participation rate is very low. whoever with this sentiment, I am telling you buy 10 fcking shares of spy and put in your portfolio... best 100 shares if you can afford, your long term view will turn around 180 degrees. why do I suggest 10 shares, because I know you are empty handed and you are broke like shit and you are living in mom's basement.
This article, while not wrong on some facts, is entirely wrong on other points. It is so wrong it's ridiculous.
%% That; + I would prefer + told the gov to live on a budget-- like many of us do. Having said that, many times to the powers that be-- a nation full of capitalists is not fragile...……………………………………………………………………………………………………………………………………..Lots of reasons stocks go up/uptrend+ Fed is only part of that--as you know.
The article is certainly correct on one point: eventually, wealth will need to be redistributed. We're not going to go the route of mass defaults and systemic reset, so the only alternative is a long period of negative rates and/or moderate inflation to wipe out the real value of long-term claims. Probably along with a hefty dose of higher taxes on wealth, financial transactions, capital gains, and estates/inheritance.
I'm putting you on warning that what is attributed to MMT economics is often not attributable. To go into detail would take pages few here would read. Anyone interested, will easily find books, papers and blogs, and now a new Macroeconomics Textbook by William (Bill) Mitchell and L. Randall Wray: https://www.google.com/search?clien...S6wKHcvyCNsQ-BYwIXoECB0QLA&tbs=kac:1,kac_so:1
I will save your post to remind you when inflation roars its ugly face again. MMT will be debunked for the nonsense and wishful thinking that it is.