Opinion: Money printing is a flawed experiment that’s done America more harm than good
Repost from 7-21-2021
“Investors are captive to Modern Monetary Theory (MMT) and its convenient non-answers to the vexed issues of economic stagnation, unsustainable public finances and debt. People’s savings are underwritten by high asset prices, courtesy of this novel brand of economics.”
USAGOLD note: According to Modern Monetary Theory, governments cannot go bankrupt because they can print money. At the same time, when money printing leads to inflation, it is the citizenry that is harmed. “By a continuing process of inflation,” wrote John Maynard Keynes in The Economic Consequences of Peace (1919), “governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth.” Mr. Das article is highly recommended.