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Old 02-01-2019, 05:06 AM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,451
Modern Monetary Theory

Both Benjamin Franklin and Adolf Hitler created money out of thin air to provide liquidity to the lower loop where the actual work is done. Both got a war for their impertinence. Creating "money" to pay for actual productivity is NOT inflationary to prices. If you increase the money supply commensurate with the increase in wealth, there is no automatic price increase.
EVERYBODY knows that the Central Bank must create the money supply,,, as opposed to the Treasury creating the money supply. If the Treasury did that, it would cause great inflation.
Armstrong, "Actually, there would be no issue if the government simply created money to fund its normal expenditure. Historically, that will produce very modest inflation."
There you have it. When the head of the FED was a Presbyterian, Paul Volker, there was no such thing as a 2% inflation target. When the chosenites took over the FED, 2% inflation was perfectly accepted and rational.
The FED sucks out $ 1/2 trillion a year from the taxpayer.
" The crisis is when you borrow to fund that deficit spending. In 2019, interest expenditures may now exceed the cost of defense. It is far cheaper to create the money needed than borrow and keep rolling the deficits forever. Then the cumulative interest keeps rising and crowds out all other expenditures. This is what is happening."
https://www.armstrongeconomics.com/a...-inflationary/
Here is an excellent article on Modern Monetary Theory That explains and justifies EVERYTHING that Armstrong claims.
https://www.themacrotourist.com/posts/2019/01/23/mmt/

" 40% of millennials are still dependent on mom and dad."
And they are NOT buying houses.
https://www.armstrongeconomics.com/m...estate-market/

1/31 China mfg activity contracted for the second-straight month in January–CNBC No, NO, NO. I read that they are growing at 6%
1/31 British car production slumps to five-year low – Guardian
1/31 Europe stays in gloomy mood as Germany slashes its 2019 outlook – Bloomberg

Germany depends on Great Britain buying their cars.
1/31 Europe launches SWIFT alternative to fund Iran – Zero Hedge
Just like russia and Nordstream, the Europeans need carbon energy.
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