Money’s Frightening Future: A Layman’s Take (Part Two)
In the first installment of this series, I started to lay out some of the reasons why I’m afraid for the future of money in America — and for the money I’ve managed to save and invest for my own future. My basic fear revolves around two things I see already happening to the venerable U.S. dollar at an increasing and alarming rate…
Its replacement and its debasement.
In Part One, I explored the possibility of the buck being replaced to one degree or another by Bitcoin and other “crypto-currencies” that are so far mainly used for speculation. I’m certain that my observations and concerns are shared by many in my age range. And I’m equally sure they incurred the wrath of many crypto zealots.
But what can I say? I’m worried about the stable, rock-solid, low-drama, universally-accepted money in my wallet and in my savings one day being totally supplanted by volatile, track-able, and hack-able instruments that are only nominally monetary.
Of far greater concern to me, however, is the catastrophic debasement of the U.S. dollar that’s already in progress — and that’s about to go parabolic, for reasons I’m going to show you. For the record, I’m not just worried about how this devaluation will cut down the real value of the savings and retirement portfolios of millions of Americans, myself included, like a plague of locusts descending on a wheat field…
I’m also worried about how it will totally redefine the nation I love.
“On the move” toward the United State of Amerika
Even as he’s preparing to force American companies to curtail domestic expansion and “offshore” their operations because of punitive hikes in corporate taxes…
And while he’s justifying ever-more ways of paying an increasing number of our citizens (and non-citizens) a respectable wage NOT to go back to work…
Last night — between odes to far-left fantasies that all seem to somehow create millions of attainable and sustainable jobs — I listened as President Joe Biden passionately read the scripted words, “America is on the move again!”
And at least that one part of his address was 100% true.
The problem is what we’re on the move toward. Biden says it’s the rebirth of American democracy, the re-establishment of our rightful role as leading example to the world, a vibrant and dominant clean-and-green economy, and a re-dedication to the will of We, the Government…
But what we’re really heading toward now isn’t the shining star of hope and prosperity Shanghai Joe is imagining, or that America used to be. Not to wax astronomical, but what we’re actually moving toward becoming is a red giant of socialistic spending that’ll quickly turn into a white dwarf of dwindling power and influence, and end up as a black hole of global irrelevancy, domestic misery, and pervasive government.
And at the root of it all is what we’re doing to the U.S. dollar.
Of all the things that are turning America commie — omnipresent surveillance, the trampling of free speech, the erosion of our gun rights, the death of law and order, the political indoctrination of our kids, the mass importation of dependency across our southern border, and the rise of woke-ness and cancel culture…
The thing that scares me the most is the stealth move toward the adoption of an economic model called Modern Monetary Theory (MMT). Like everything liberals and quasi-socialists champion, MMT is deceitfully named. Far from being new or modern, the bones of this model are over a century old, and they were bad bones even back then.
Now, as usual when I talk about economics and such, I must start off by saying that I’m not an economist. The twist is that you don’t really have to be a scholar of any kinds to understand the basics of Modern Monetary Theory — if you can find someone to put it into an honest context for you. That’s what I’m trying to do with this piece. As I have come to understand it, MMT pretty much revolves around one core principle…
That fact that countries with their own sovereign currencies can technically never go bust — because they can always print or otherwise generate the money they need for programs, services, welfare, entitlements, benefits, guaranteed minimum income plans, defense, debt repayment, or whatever. According to MMT, a country can run continuous and enormous deficits, for whatever reasons and issue a virtually unlimited amount of its own currency to pay for it all.
What about inflation, you ask? Adherents of Modern Monetary Theory say the link between ballooning quantities of money and real inflation is tenuous. They point to nations like Japan as proof of this. In case you don’t know, Japan’s M2 money supply has more than doubled in the last 25 years, while their inflation rate has remained almost perfectly flat at right around zero percent.
Under MMT, if inflation does rear its ugly head, the solution for it is to remove some money from circulation through taxation. And this is one of my main gripes with the model — it perverts the proper role of taxes, in my opinion.
In my understanding of conventional (read: proven) economics, taxes are collected from the people to pay for the government and its provisions, programs, benefits, etc. Theoretically, a well-run government doesn’t spend any more money on these things than it takes in via taxes, on the balance. Even though this concept has been stretched at the margins many times through the ages, this “tax, then spend” model has been the basic economic underpinning of most free societies.
But I don’t want to get too deep in the weeds on the econo-geekery here. As I understand it, Modern Monetary Theory would be like a great big money tree that never stops growing — and that drops more and more dollar-leaves each year down to every new program, initiative, frivolous agenda platform (like all those EVs and their attendant infrastructure), or redistributionist scheme the neo-socialists that are suddenly in charge of America can dream up.
In other words, MMT is nothing more than a rationale — plausible upon cursory examination and burnished with the imprimatur of academics — for spending money without limit. It’s every liberal’s wet dream, in other words. The problem is that proponents of Modern Monetary Theory make the same mistake all liberal academics make…
Grossly underestimating the intelligence of the average American.
Take the MMT equivalent of The Communist Manifesto, for example — a much-hyped book called The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy. I urge you to read this book and take note of how skillful it is in trying to gaslight you into questioning all your kitchen-table beliefs about sound economics.
Written by acknowledged MMT-champion economist Stephanie Kelton, a former advisor to the Bernie Sanders campaign (of course), The Deficit Myth smothers its readers with an endless barrage of metaphors in an attempt to upend the basic economic principles that have driven commerce the world over since the dawn of money.
For instance, the crazy idea that money should ideally be earned and possessed before it can be spent…
The fallacy that money, if borrowed or extended on credit, should be paid back with currency of similar value to what was borrowed…
The laughable belief that the real-world worth of money shouldn’t change or fluctuate too much from day to day, or even from year to year…
The absurd notion that money shouldn’t just be created out of thin air, or conjured into existence with a few keystrokes over at the Treasury Department…
Modern Monetary Theory seeks to liberate us from all these flat-Earth, antiquated myths about money, budgets, and basic economics. It feels good to imagine cutting loose of all this stuff, too.
It’s wonderful to reclassify federal deficits as private-sector surpluses, which makes our government’s profligate spending downright patriotic.
It’s a relief to think that the government doesn’t really need to tax us for their revenue anymore — but only in the remote case that inflation gets out of control.
And it’s comforting to think that because we create our own currency, we’ll never fail to have enough money on hand to provide for any need our nation or its people will ever have, from national defense on down.
This is all no doubt some good-tasting Kool-Aid to many.
Until you dig a little deeper under the surface and conclude, as I have, that the real goal of Modern Monetary Theory is the stealth transition to neo-socialism through economic, fiscal, and monetary policy channels rather than head-on, through political means.
The clues are all right there in The Deficit Myth, if you look closely. For example, the roles of taxation under Kelton’s MMT model are not limited to provisioning the apparatus of government and controlling inflation by removing money from circulation…
Under my understanding of the MMT model, taxes are also used for the top-down redistribution of wealth, the subsidization of federal jobs-for-all or guaranteed income for all — and to dis-incentivize behaviors the ever-more-powerful government deems undesirable (like fossil fuel consumption).
Again, taxation is just one example. I could cite lots of other aspects of Modern Monetary Theory that appear to be aimed at steering America Far Left. And bear in mind once more that I’m not an economist — or even really much of an amateur enthusiast on economic theory and philosophy…
I’m just ordinary American of the type that Kelton and her contemporaries believe are easily deceived, or fundamentally driven by feel-good emotions about never having to worry about a job or income again. So if all this commie gaslighting is obvious to me, it’ll be obvious to you, too, when you read The Deficit Myth.
The Japan case study be damned — if we balloon the money supply to oblivion, how can domestic inflation not happen sooner or later, by one measure or another?
And why would foreign nations underwrite American debt any longer, knowing full well that the dollars they’ll get repaid in will be worth a fraction of the ones they loaned us, in real-world terms? Wouldn’t the same concerns affect foreign investment in U.S. ventures, too?
And how could the dollar remain the overwhelmingly dominant global reserve currency — which contributes immeasurably to its stability — if we debase it into impotency through endless money-printing to pay for a bunch of worthless leftist claptrap (like EVs) that’s going to make America less competitive?
If I’m right about all of these things, they’ll make every dollar folks like you and I hold in our retirements less valuable. Perhaps radically so.
That’s my fear. The problem is that it’s no longer just an abstract worry…
It’s already happening.
Welcome to Modern Monetary
Our country hasn’t had a budget surplus in 20 years. Washington’s been relying on Continuing Resolutions to keep the lights on for decades.
Meanwhile, Biden’s dumping cash into programs and initiatives and sweeping spending plans America clearly does not need, for the most part…
And a huge percentage of it is liberal wish-list stuff that’s going to take over $6 trillion in new debt or money creation to fulfill.
That’s just so far, too. Much more of this crap is on the way, I assure you.
Large numbers of workers aren’t going back to their jobs, because the government is now paying them just as much, or more, to do nothing.
The Federal Reserve and the Treasury appear to be slowly merging into a single entity (MMT explicitly calls for this, by the way).
Government economic interventionism — QE, interest rate manipulation, money printing, etc. — is reaching new heights with every passing day, it seems…
In fact, The Fed is now generating approximately 120 billion new dollars a month.
They’ve also suddenly begun eliminating, changing, or otherwise obfuscating their reporting of our country’s M1 and M2 money supplies.
If that’s not a smoking gun, I don’t know what would be.
Clearly, the Federal Reserve doesn’t want us to be able to easily find out how much new money is being created. There can be only one reason for this…
To obscure the real rate of dollar devaluation and real-world coming inflation.
Again, I could keep talking about all this, and more. There’s a lot of other fishy stuff afoot that’s got me scared out of my wits about the future of my money, and yours.
The bottom line, for me, is that the U.S. dollar is under assault on all fronts…
And in due course, I fear it’ll be replaced and debased until it’s as volatile, unstable, and impotent as any number of other inconsequential currencies you could name.
So what the hell am I working so hard to stockpile them for?
Why shouldn’t I just take it easy and let the government provide me with a work-free income — like it’s beginning to do, in line with the tenets of MMT?
I’m just too much of a proud, hard-headed American layman, I guess.
Freedoms Editor, Whiskey & Gunpowder