Modern Monetary Theory for Dummies.
Twelve years ago, when the Housing Crash had just started, Alexandria Cortez and her gaggle of fresh government blood were just kids. Most of them did not come from poor families. They cannot appreciate that giving money with no value, to people who don’t provide a product or service, will only perpetuate the rich getting richer and the poor getting poorer.
They call it Modern Monetary Theory. Proponents of MMT say that any country that prints its own currency can’t go broke.
The “New Breed” of politicians who grew up during those years, believe that it will be Okay to simply keep printing as much money as the government needs to pay for any and all welfare, regardless of the inflation caused by the new money.
Their thinking comes from economists like Ben Bernanke and Janet Yellen, who learned it from other highly educated economists that previously sampled the theory by printing relatively small quantities of money to help cover America’s debt in the past.
When it didn’t crash the market or destroy anyone who would be missed, they increased the amounts. Every printing made the Dollar more worthless and in August 1971, Nixon removed our currency entirely from the Gold Standard and the United States Dollar became a fiat currency like many other countries, not backed by anything except a promise, an IOU.
By the time the Sub-Prime Mortgage Crisis came along, we were so accustomed to our inflated dollar, no one batted an eyelash when Bernanke massively increased the printing of money to $85 billion a month.
He called it Quantitative Easing to make it sound more acceptable, safe, good for the economy.
According to Bernanke, Quantitative Easing would allow the banks and the market and the economy, to float rather than crash, and recovery would be quick and painless.