Saturday, May 19, 2012

MMT and MMR are Religion not Science


Feynman explains the meaning of science in 63 seconds. The predictions of a theory must be compared to reality and if they do not match then the theory is wrong. Both MMT and MMR claim that making new money to buy up bonds is "just an asset swap" and not inflationary. When a government exchanges new money for debt it is called "monetizing debt". This experiment has been done in significant amounts over 100 times with significant inflation or hyperinflation being the eventual result. The theories of MMT and MMR do not match reality. They are wrong.
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1 comment:

  1. MinJuly 17, 2012 at 6:02 PM

    "When a government exchanges new money for debt it is called "monetizing debt". This experiment has been done in significant amounts over 100 times with significant inflation or hyperinflation being the eventual result. "

    How about a couple of examples, not of hyperinflation, but of the monetization of debt leading to hyperinflation?

    Thanks. :)

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Looking for polite debate on ideas. Never attack a person. Be nice.

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