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May 21, 2020 | Modern Monetary Theory (MMT)…Replaces Keynesian Economics for Today’s Commerce!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian: http://kingdomecon.wordpress.com.

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The new evolution within monetary theory is called MMT (Modern Monetary Theory). 
It emerged along with our digital dollar after the last financial crisis (2008). Let’s detail the basics of this new theory which is allowing our Fed and Treasury to expand currency (dollars) ad infinitum. What are the details?

1. The theory involves America’s ability to expand currency creation (indefinitely) via a digital platform with no real costs (as long as the dollar is the world’s ‘reserve’ currency and as long as inflation does not spike upward (above 2%). Our dollar is now ‘digital'(virtual) and this allows our Fed to lend to infinity (as currency is a mere ‘number’).
2. America’s debt situation is not a problem as unlimited debt can be serviced by selling our Treasury securities to the Fed (if necessary). Our Fed can buy these government securities as our Treasury spends and spends (with no real consequences). This is called ‘monetization’ of debt by our Central Bank.
3. Today, inflation is not a problem as robots and automated production machines produce most of our material goods. These automated robots can produce products 24/7 with no stoppage for labor and human issues. All this allows debt to expand (indefinitely) and government spending to expand (indefinitely). Inflation has not been an issue!
4. Our National Debt (now over $25 trillion) could expand to $50 or $100 trillion (if necessary) as our dollar is the reserve currency (it buys products globally) and our dollar is currently desired globally (as it is the primary ‘reserve’ currency for the planet). Interest rates are low (and this allows the U.S. to service its debts with no real consequence…as of today).
5. As long as the $ is digital (virtual) and also the ‘reserve’ currency for the world, America should be able to create unlimited DEBT and deficits (if necessary) via the ‘typing’ of new digital $$$$$$$$$$$ into the System Open Market Account (for circulation to the greater marketplace). Our Fed can merely ‘type’ new currency (called money) into their System Account and then purchase assets (treasuries, mortgages, bonds, stocks, or whatever) with these newly created ‘digits’ (imaginary numbers from the MIND of our Fed administrators).

Look at our debt situation as of today here: http://www.usdebtclock.org. America has trillions of $debts and $unfunded liabilities. Yet all can be serviced with the ‘click’ of a computer key (called currency monetization by the Fed). Our Fed balance sheet is now nearly $7 trillion and heading for $10 trillion (in 2020). Mr. Powell thinks that he can expand this balance sheet (his check book) indefinitely and with little consequence as America is a favorite nation (we have the dollar as the ‘reserve’ currency for the planet). Everyone wants our $$$$$$$$$$ and more $$$$$$$$$$$ (as of today).

Think of money today as a virtual ‘number’ which gets ‘typed’ into a computer account. Here is now it is done. Let’s assume I am Fed Chairman. I merely TYPE new ‘numbers’ into my computer account (called the SOMA) and these ‘numbers’ become OFFICIAL Legal Tender for the marketplace. Look here at my ‘typing’ of new numbers: 123456789123456778883288393025858582085828227398374982973982897492792428399238479. How much did I TYPE into my account? Whatever I desire to TYPE can become new dollars for the marketplace. Add up the NUMBERS (if you can)! Trillions and more is possible as our $ is now a UNIT of my CONSCIOUSNESS (typed into my computer screen and then called official legal tender). Is this legal and Constitutional? I would suggest, NO! But who cares (it works as of today).

As Fed Chairman, however, (along with my Treasury Secretary partner) I can ADD newly TYPED ‘numbers’ to my SYSTEM ACCOUNT whenever I choose. Yes, Mr. Jerome Powell and Mr. Steven Mnuchin can agree on a NUMBER ($1 billion, $1 trillion, etc.) and just ADD this number to the System Checking Account (via typing). It’s all done with the computer and typing of imaginary numbers into a computer account. Amazing! America can now create, expand, increase it’s dollar currency ad infinitum (with no real consequence as of today). Mr. Powell understands all this and he expressed his knowledge in this interview on 60 minutes:

https://youtu.be/9-rsQT4HScA (Mike Maloney explains the message of Mr. Powell on 60 Minutes)

https://youtu.be/J5RXQLAgdDk (talk about negative interest rates)

https://youtu.be/sKx1BZd9bjQ (Fed says Congress can spend, spend, spend)

Modern Monetary Theory is being discerned by all our politicians (like AOC) as they now desire NEW stimulus for the American economy. Nancy Pelosi and her gang has another $3 trillion stimulus package ready for approval by the House. Our Congress just approved a prior $3 trillion program and now they seem to desire another $3 trillion. Why not expand it to $10 trillion? It’s just a ‘click’ of the computer key at our Fed’s computer keyboard. Money from ‘heaven’ emerges instantaneously.

All this imaginary money (really dollar currency creation from consciousness) is a corrupt process IMO. Our Constitution does not mention a virtual (digital) dollar as valid legal tender for Americans. Our courts have not approved a virtual (digital) dollar for Americans. Yet our Fed now creates these units of nothing for our marketplace. The entire world is going Cashless and Digital. But is this valid Legal Tender (Constitutionally)? I don’t think so! Our entire currency system is now a corrupt/criminal operation IMO. The system has not been adjudicated!

Think about what has evolved in recent years? Money (a store of value) has been eliminated from our marketplace and a Virtual currency (called the ‘digital dollar’) has replaced our Constitutional money (silver and gold). A non-thing (this digital dollar ($$$$$$$$$$$$$$$$$$$$$$) has replaced a material ‘thing’ (silver and gold). Even paper notes and copper coins are no longer being used (officially). All is now VIRTUAL (digital). I call this ‘money from heaven’ as it derives from the MIND of a bankster’s thinking.

Listen to Mr. Powell as he espouses his confidence in this imaginary system of finance (see above videos). Will it work longer term? I don’t think so! The entire platform will collapse at some point down the road. China will probably reject our FAKE $$$$$$$$$$$$$$ for their products. Europe will probably reject this FAKE $$$$$$$$$$$$$$ for their products. Why would a FAKE $$$$$$$$$$$$$ created from the MIND of a bankster (behind closed doors in Washington or New York) elicit international confidence (for trade)? It makes no sense to me!

Watch as our politicians produce NEW stimulus programs (ad infinitum) and then watch as foreign countries start to complain about America’s counterfeiting operation (to avoid its debt and deficit problems). If I can discern the corruption and criminality in all this, I assume others will do likewise as they become aware and informed. Pass this missive on to others who desire to learn about this NEW THEORY called MMT (Modern Monetary Theory). Keep this website on your agenda going forward: http://www.usdebtclock.org.

Have a great day! I am: https://kingdomecon.wordpress.com.

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May 21st, 2020

Posted In: Kingdom Economics

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