No more talk and lecturing. I'm using MMT to make money now. That's the best revenge!

It’s one thing to talk and lecture about MMT it’s another to practice it; to actually put it to work. Personally I am growing tired and frustrated of talking about MMT particularly when I watch the relentless push of all this destructive neoliberalism and the defective and poisonous neoclassical economics that underpins it.

When I think about MMT now I just want to make money with it. To me that’s the best revenge. Plus, how fun would it be to use something like a correct understanding of our monetary system to take money from the likes of Peter Schiff and Jim Rogers and Bill Gross and who knows, maybe even Pete Peterson himself? What a wonderful way to build your own bank account.

Who applies MMT?

Well, Warren Mosler applied it when he was a money manager and he made himself a fortune, along with his partners, one of whom just sold the Florida Panthers hockey team, which he owned, for $250 million. And Warren’s fund, Illinois Income Investors, never had a losing trade during Warren’s tenure there. So you see, MMT definitely has power.

But who is practicing MMT now? Who is applying it?

Me for one, that’s who. I have incorporated it into my own personal trading and I am teaching applied MMT in my Forex course. Read the testimonials if you haven’t already.

Let me give you an example of what I am talking about. Consider the following scenarios…

Scenario 1

The Fed announces that it is going to taper its bond purchases, so investors start buying the dollar and selling euros, yen and British Pounds on the belief that taper equals less “money printing” or, that it is a prelude to higher rates. In reality, however, fewer bond purchases mean those securities remain owned by the private sector earning interest, which the government pays and it’s interest that otherwise would have been removed. That means dollars become “easier to get,” therefore, the dollar rally fails and it reverses course and starts going down. MMT traders knew this would happen all along so they shorted the buck as it rallied and they cleaned up when it fell to new lows. Others didn’t see it so they lost. Boohoo for them.

That’s applied MMT.

Scenario 2

British Finance Minister, George Osborne, announces another round of austerity, even as the British economy struggles under already austere conditions. Traders pounce on the British pound, selling it for euro, yen and dollars thinking that it will mean a recession is coming. The reality, however, is that austerity means less deficit spending or perhaps even balanced budgets or surpluses, therefore, the net creation of British pounds is curtailed making the pound “harder to get.” Traders using applied MMT go long the pound while others sell. The pound’s slide is short-lived and soon it begins a long and powerful rally. MMT traders clean up. Wah wah, the others didn’t.

Scenario 3

The Fed announces another round of QE. Traders buy gold and sell the dollar believing that QE is “money printing” and it will lead to inflation or hyperinflation. MMTers on the other hand, understand that QE is just an asset swap: the Fed exchanges some stated quantity of government securities for an equal quantity of reserves. No net creation of dollars. Bingo! The MMT traders fade the dollar sellers and gold bugs and they come out looking rosy. Meanwhile, the dollar sellers and gold bugs just keep saying “There will be inflation, one day, you just wait and see.” MMTers laugh all the way to the bank.

These are just a few scenarios in which MMT can be applied. There are many more.

The fact is, I have been trading over 30 years as a member of four exchanges and as a floor trader and I literally see opportunities like this every single day where you can make money because market participants misread or misunderstand the true impact of policy changes or economic data on the markets. That’s because they are operating out of belief as opposed to true knowledge and fact. But as everyone should realize there  is a difference between belief and truth. If you don’t  realize that it will cost you money.

Let me state this very simply…if you know how people are likely to react based on their (false) beliefs and if you know how the monetary system really functions (truth) and if you can execute well and control your emotions then THERE IS NO REASON WHY YOU CAN’T BE LIKE MOSLER HIMSELF, MAKING WINNING TRADES ONE AFTER ANOTHER.

How do I know? Because I have been doing it! And I’ve been showing it to students in all of my classes over the past year. Never had a losing trade, there you go.

The course I’ve put together is truly a revolutionary course. It combines MMT with trade execution and personal mental “management.”Once you have this stuff down I can assure you, you will never look at trading and the markets again in the same way, ever.

Trading successfully is extremely hard for most people, almost impossible if not actually impossible. I know it was for me for a long, long, time. I was up and down and up so many times I can’t even count. Then I slowly learned how to control my emotions. That was huge because it was the reason for me sabotaging myself even though my analysis was good. You have to stop shooting yourself in the foot if you are trying to learn how to walk.

Then I learned how to read the market, I mean truly READ the market as in what other participants were doing: where they were positioned, what they were planning on doing at certain price levels, who was long, who was short, who was a strong hand, who was a weak hand, etc. When I learned to read the market and when I learned to understand its “composition,” that was like the difference between being blind and seeing in 16 million different colors. If you know who’s in trouble and who’s not, if you know who’s got a strong hand and who’s got a weak hand, you can literally use other people’s money to make money for yourself. That means you never have to put your own money at risk. How’s THAT for risk management!

Finally, after all of the above, I discovered MMT and that was the clincher.  MMT gave me the proper understanding of the monetary system, the economy, of policy and its effects on the markets. Before MMT I was just another Schiff. In fact I still have old tapes of me from my early days on Fox, circa 2000, 2001, when I was saying things like, “America is broke” and “We’re out of money” and “the Fed is printing money,” etc. Jim Rogers was my hero! Pathetic, I know.

Anyway, the rest is history as they say.

As for the course, some people ask me why do I teach? Well, for one thing it’s gratifying. I went through so many ups and downs and I know how frustrating it can be and I truly want to help people. The other thing is, I have found that teaching the course has made me a better trader. In fact, a MUCH better trader. Every time I give the course I learn something new, something that I did not know before. It’s one thing to be good at something, but it’s another thing to explain, in words, exactly what you do to be good. Putting it into words makes you delve deep down into the process and understand it on a level that is much more profound than when you’re just sitting there doing it alone, mechanically. It’s positively enlightening. I can honestly say I love it. I love teaching it.

I can say with the utmost confidence that the course will bring you to a level where trading becomes a controlled, predictable process with a positive outcome each and every time. You will see where making money becomes a matter of knowledge, self control and execution. You will understand, probably for the first time, that trading without losses is totally achievable as long as you have the right knowledge and the right methods. Warren Mosler did it. So can you.

To find out more about my course please go to www.pitbulleconomics.com. Or, feel free to email me at contrarianmedia@hotmail.com. Hope to see you in class.