I referenced in my last post the lie of Modern Monetary Theory (MMT). It is very much a lie. The notion that the economy and money creation should be controlled entirely by the State is the most ludicrous idea. Governments printing a money has never worked. History has proven time and time again that when governments control money the government will eventually fall.
The basic concept of MMT is that government should create money, spend it to solve problems along with trying to stimulate an economy that is already an oversized bubble that could pop at any time. This is a basic understanding of MMT but it gives you a framework.
This isn’t necessarily a new idea, but more of a new proposal by those in government to push upon the masses. The economic bubble is ready to pop. It has been for years and they are trying to stop the inevitable by pushing Modern Monetary Theory. This is just a radical move to try and save an already dead system that’s on life support.
It isn’t going to work. They have built a house of cards that cannot be sustained by further money creation and spending. People are now talking about the benefits of MMT. I see zero benefits. This is just complete insanity.
The problem is that people will buy it and go so far as to even advocate for it, believing that there are some underlying benefits to it. Nations like Venezuela should prove that poor economic decision-making is disaster. The problem is that history also shows that we never learn from history. We make the same mistakes again and again.
What this will accomplish is greater struggle for the people who will be subject to this horrible shift in direction. This will make the rich richer and the poor poorer. It will not be equitable. Capitalism is always a better system because it allows freedom for people to improve their way of life. People are always in for a world of hurt when governments control economics and the money supply.
Inflation is here. It’s going to get worse because when the government increases the money supply the prices will follow by increasing. The value of a dollar will drop. This will result in greater inflation and struggles for the poor and middle class.
Governments are run by people who believe that the government is helpful. I have served on local government bodies and some have very good intentions, but the problem is that government is never the solution. The marketplace is the solution. It is never a good idea to have the government control the economy.
The problem is that people aren’t taught economics and when they are they are taught by people with preconceived ideas. The average person does not understand good economics. If you study economics, you would know that there are various schools of thought. I am fond of Austrian School of thought. I believe that having a true free market is the only true option for financial success.
The Roman Empire collapsed for many reasons but one of those was the economic collapse they had experienced from within. The American economy is going in the same direction. I see many parallels between the two. The American government cannot sustain itself under the current MMT.
The truth is that we are experiencing what could be the greatest economic crisis ever. We have a bubble that is unsustainable. We have an economy that is at a breaking point. Yet, the Fed keeps printing more money.
This isn’t just an American economic crisis though. The American dollar is the world’s currency. Other countries are losing faith in the US dollar and it is only a matter of time before they try to transition in order to salvage what they have. They can’t admit defeat so they will make more changes to pivot. This very well might be the “Great Reset” and could take us into the next “Greater Depression”.
This might sound like a lot of hopelessness, but I am hopeful. I see a sea of possibilities with the coming changes. People who pursue Financial Freedom will continue to find ways to live free. Don’t give up! Pursue your dreams and discover how to find Financial Freedom in your own life.
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