A major problem with hyper-Keynesian MMT advocates is that it relies on:
- Having the global reserve currency
- Being able to raise taxes at will to fight inflation
It may be possible that with a one-world government and global agreement on central currency that we could get to this. But instead the US only has the global reserve currency, and the political will to print it seemingly infinitely, but not the ability to raise taxes dynamically.
We are already seeing high inflation (by recent US standards) that is beginning to become politically untenable. A full-throated MMT policy would be impossible in the current environment.
Even worse there are major threats to USD as the global reserve currency, from Bitcoin to China RMB. I fear the politicians are playing with fire and the lack of fiscal discipline will lead to serious backlash and the reduction in global financial power for the US.
- Having the global reserve currency
- Being able to raise taxes at will to fight inflation
It may be possible that with a one-world government and global agreement on central currency that we could get to this. But instead the US only has the global reserve currency, and the political will to print it seemingly infinitely, but not the ability to raise taxes dynamically.
We are already seeing high inflation (by recent US standards) that is beginning to become politically untenable. A full-throated MMT policy would be impossible in the current environment.
Even worse there are major threats to USD as the global reserve currency, from Bitcoin to China RMB. I fear the politicians are playing with fire and the lack of fiscal discipline will lead to serious backlash and the reduction in global financial power for the US.