Modern Monetary Theory Will Kill the Dollar ~ James Gorrie … (Death of the Dollar–17) with Link to Full Story

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Printing an unlimited amount of money will result in hyperinflation, and economic devastation.

James Gorrie –

"Will Modern Monetary Theory Blow Up the Dollar?" 

(Right-click title to see original story)
(Image source)

– Flash Points –

1 – Belief in an infinite supply of money is insane.
2 – MMT posits that gov’t spending can be paid for with printed money.
3 – Wall Street financiers love MMT, because it gives them more money.
4 – MMT is a totally insane concept.

– Synopsis –

Modern Monetary Theory is an “economic absurdity”  that might work for a while. But eventually, it will bankrupt any government that employs it. Printing an unlimited amount of money will result in hyperinflation, and economic devastation. 

Hyperinflation from Dummies

A cursory look at history shows the effects of money printing. In the 1920s, Weimar Germany experienced high rates of inflation. The government’s reckless reaction was to print more and more money. Of course, the inevitable result was … hyperinflation. Duh.   

Only 10 years ago, Zimbabwe suffered hyperinflation of close to 100% per day. Yes, per day! That hyperinflation resulted largely from President Robert Mugabe’s disastrous economic programs.   (Image source)

Quantitative Pleasing

Over the past decade, the Federal Reserve has been engaged in similarly disastrous money-printing programs, euphemistically called Quantitative Easing (QE). It may seem that QE is different from those policies carried out by the Weimar Republic and Zimbabwe, and QE may actually be somewhat different. But there are obvious and undeniable similarities. And disastrous similarities.

And it’s certain that more and more similarities will appear as the Fed’s money-printing frenzy shifts into “hyper-” drive. (Hint, hint.)

The only ones who have benefited from all that quantitative pleasing were the elite and the financial pirates on Wall Street. But all of us will suffer the inevitable consequences.

– Insight from Outside –

Gorrie mentions the nonsensical belief that “As long as the government can print money, we’ll never be broke,”  explaining how foolish that policy is. In fact, printing money with abandon is one of the reasons that a government will bankrupt itself.

The Sooner, the Better … or the Worse

While Gorrie explicitly states that the Chinese financial world is “on the brink of collapse,”  he only hints that the US economy and the US dollar “would”  collapse, given certain eventualities. 

But, as clarified above, a short history lesson makes it clear that the US dollar “will”  collapse. Sooner rather than later.

Actually, for the past 10 years, the US economy has been on life-support. It is in no better shape than the Chinese economy. In fact, the US economy, as well as many other advanced western economies, is probably in worse shape than China.   (Image source)

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12 comments
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i am doing online work i am getting payments in dallors but more over , the place i live , where dallor is affecting

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According to the Bible, Why does the Bible prohibit eating hares? (Part 1 of 5)

(Sorry for sending this comment. We are not looking for our self profit, our intentions is to preach the words of God in any means possible.)



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(Edited)

Do not preach the words of god under my posts.

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MMT posits that gov’t spending can be paid for with printed money.

What is backing the printed money? It is so amazing the way a lot of countries print money just to increase the circulation of money around. Printing money continuously have done no good but cause hyperinflation which leads to a devalued currency. I heard the chinese central bank is willing to print out yen worth $100 billion to fight coronavirus, if this money isn't backed by anything, then the country should borrow from another country rather than printing excessively. It will only kill the economy in the future.

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Exactly. All fiat currencies eventually revert to their true value – ZERO. And money printing just speeds up that drop to nothing.

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I thought fiat was backed by Precious metals and gems. But if the entire fiat in circulation is above the amount of gold, silver and other precious metals then what is it backed by?

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Fiat money is backed by nothing. Nothing but the belief that the users have in it, and the faith that others will continue to believe in its false "value."

Throughout history, all reserve currencies have lasted only a short while.

And all fiat currencies will revert to their true value of zero.

Posted via Steemleo

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It may seem that QE is different from those policies carried out by the Weimar Republic and Zimbabwe, and QE may actually be somewhat different. But there are obvious and undeniable similarities. And disastrous similarities.

I think the US money printing policy is quite different, different because the US dollar is a legal tender in all the countries of the world. That makes it extremely difficult for inflation to affect the US within a short while - instead other countries in Africa and Asia face the impact of the dollar-printing gambol. But clearly, there will be dire consequences in the foreseeable future. Thanks for this excellent post.

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RIght. As you say, the dollar will not disappear in a short while. But eventually, and probably not a long while.

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