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.