Modern Monetary Theory In Action

There is nothing left to say about the state of what was once known as “The bastion of free markets and capital formation” colloquially known as “Wall Street” other than if you ever thought the idea of Modern Monetary Theory (MMT) was just so crazy of an idea they would never truly implement it. Hint: you’re now in the final phase of what would be the equivalent of late stage drug trials, before full oversight approval and rollout.

As I’m typing this the overnight futures are being propelled higher and higher again, into never before seen in human history height and splendor. It is an absolute marvel to behold, yet, the questions that need to be asked such as “Are there any long term consequences?” are not only not being asked, but if they are, they’re immediately jettisoned from ones mind. i.e., Take the medicine, enjoy the ride, dude. It’s the only way to fly, stocks only go up!”

This also happens to be the inoculation chant of today’s mainstream business/financial media. It’s not just troubling – it borders on down right malfeasance. Personally I find it morally bankrupt.

As I alluded, this process unleashed by the Federal Reserve of supplying “kick, after kick, after kick” of this new drug, which in trials is named QE (quantitative easing) but when its released to the full public at large it will assume its own colloquial moniker known as “Free Money.”

The repugnant idea in which downright crazy talk and ideas about an economy, its markets, how they function and more, where people like Paul Krugman, Joseph Stiglitz and others of this ilk are the ones being implemented into what was once the bastion of free market enterprise is mind-boggling. But at this time, this lunatic fringe will point to said “markets” and say “See, we’re the ones that are correct, it is you and your ilk that thinks 2+2=4 math, or that you need to make a net profit to be profitable are the ones that are wrong!”

Right now, they are correct.

The issue here is they can never be wrong, because being wrong means a whole lot of – much further and much more consequential damage – if they are. And make no mistake, I believe they are and may be proven so far sooner than anyone thinks, let alone believes.

Now that the Fed, along with congress has literally spoon-fed the public at large with small doses of MMT in the forms of stimulus checks, and in much larger doses to Wall Street in the forms of QE, where there’s no longer any thought for the need of prudence when, after all, the pusherman Fed’s got their back, man! It’s only logical that the next phase is to go full MMT.

That’s the true issue here with these “markets” now so far above any point of rationality. And the public will now demand theirs in much larger doses and frequency. It’s a frightening aspect, but it is a logical conclusion. The Fed over the last 20 years has now created such a monster that the analogy of “Riding the tiger” seems quaint.

The destruction to cities, states, local governments and more is only just beginning, but what should not be left out of the contemplation is the fact – the more money i.e., MMT that is pushed into the main veins of the country – the more it pays the very same rioters that want to burn it all down simultaneously.

Or, said differently: They too would receive their doses along with everyone else allowing them to riot and destroy ever-the-more.

The issue here is that many will use the current state of the “markets” as further proof that there’s a two-tiered system of both wealth and equality.

And the higher these “markets” go – the more they’re going to have a point, just like Krugman and Stiglitz.

Welcome to the crazy.

© 2020 Mark St.Cyr