Here is what MMT says needs to happen so “we can pay for it” and make America great again.
Treasury instructs the FED to credit all accounts and poof no more public debt.
Basically QE till all bonds are owned by the FED and the freshly printed $22 trillion go back to all savers. (High net worth individuals, institutions, foreign entities, foreigners.)
Then MMT instructs the FED to commit to ZIRP (zero interest rate policy) except for a 3 month bond. Savers will only have 1 option to invest in bonds, at an interest rate of 0.005% (3 mo.)
The newly liquified $22 trillion will now chase yield in the remaining 3 asset classes, stocks, real estate, commodities. Because no one will park their millions and billions in an FDIC $250k insured bank account. That is not what money managers are paid to do, resulting in massive asset price inflation as the $22 trillion flows.
Real estate will become unaffordable for most Americans.
Food prices at the super market, materials to build, oil, gas etc.. will skyrocket.
Stocks trading at 100 PE will be a norm untill such time they come crashing down. We have not even gotten to the value of the dollar yet. Wait!
At this point MMT imposes the “Import first America” policy under their “correct” understanding that job destroying imports are a benefit and job creating exports are a cost.
Next, MMT will instruct Congress and president to lower taxes so as to increase deficits to reach some fantasy 0% unemployment to maximize “real resources”. As a result deficit spending will have to increase to a minimum $5 to $6 trillion +++ per year (tax cuts included) on Fake Job Guarantee, Green new deal, healthcare for all, free college, and many other wonderful free lunches for all. Deficits to GDP have reached 25 to 30% annually. More savings fro the top 5%, the higher asset prices as $6 trillion keeps pouring into asset prices.
Finally to the King dollar. By paying for it all, the dollar value has crashed. There are so many $s in the World no one wants them anymore. Who wants to own a currency with an economy full of useless buffer stock workers getting paid $31,500.00 per year doing useless unproductive tasks and importing?
Now inflation is skyrocketing and all the little memes honour the window. Don’t worry because deficits = “OUR” savings, we can always meet any debt obligation0 denominated in our currency and their red ink is our black ink. Blah blah
At this point Natasha Kelton and Pavlina start fighting and pulling each others hair out. Pavlina wants to deficit spend more and give pay raises to Fake JGers While Natasha Kelton is pissed cause JG was supposed to anchor inflation and now has to tax the rich and cut spending to tame inflation. Mosler walks in and says ladies dobt worry, the answer to inflation is not to sit in the sun or the shade per se. They both bitch slap him and tell him to STFU Mr. Next revision will show no inflation man
Magically (As with all other previous MMT points) the political will exists to raise taxes to stop the imploding currency value and combat inflation. (According to MMT print to inflation) Just like it was magic that Congress,Treasu
As inflation is kicking ass all over the place, Natasha won the hair pulling contest and MMT will combat inflation by taxing the top 1% (70 80 90% and even 100%) till 1% says fuck you I am out of here. (After they were all stuffed with endless trillions in deficits of course. Not before) If the asset bubble implosion has not yet occured, at this point it definetly starts crashing.
The MMT solution of course will be to increase deficits from the initial $5 to $6 trillion to $8 to $10 trillion +++ per year. At this point most Americans are “buffer stock” and Fake JG is a norm. Catch 22 is finally revealed. Economy, stock market, dollar, real estate CRASHING, high inflation and the public purpose is exposed for what it is. Public disaster for 330 million Americans.
The massive govt spending that we can pay for is now approximately 55% to 65% of GDP, Deficits are now no longer a viable option to recover the economy as inflation is soaring Venezuela style, public Debt at that point is no longer measured to GDP but rather debt to total assets.
By now you can easily see just how rediculous MMT perscription is. As I have said before, MMT party has nothing to do with macro economics and everything to do with politics, free lunches for a vote.
This would be the reality if Wordy MMT convinced millions to sacrifice productivity for full employment with half the population on workfare serving the public purpose by collapsing the greatest economy known to man.