Tuesday, February 26, 2019

Michael Ballinger — The Mirage Called 'Modern Monetary Theory'

I was poring over the Federal Reserve minutes from Feb. 21, and as I was rolling my eyes and looking around my den for something to throw, I was reminded of the comments from then-Fed chairman Ben Bernanke years ago when he was asked if the Fed was "monetizing debt." The reply was "No."
Yet here we are, years later, and the new mantra is now "Modern Monetary Theory," which says central banks and sovereign treasury departments can print any amount of money they so desire over any extended period of time and it won't create anything but rising stock markets and minimal inflation. Better still, for those who depend on either their houses or their retirement portfolios for late life safety and security can continue to do so because the Fed minutes revealed the "Greenspan Put," which was survived by the "Bernanke put," which morphed into the "Yellen Put," has now been replaced by the "awesomest" put of them all—the "Powell Put."
Doesn't know the difference between monetary and fiscal, apparently. If he does, he doesn't demonstrate it.

Steetwise Reports
The Mirage Called 'Modern Monetary Theory'
Michael Ballinger

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