“Wealth cannot be created by creating debt and money.” – Ray Dalio
Federal Reserve Chairman Jerome Powell testifying in Washington, and other Fed officials running around the country, are of one voice calling for more Washington stimulus spending.
Spending of money which Washington doesn’t have, by the way. But not to worry, the Fed will just print the money anyway.
Makes you wonder why not cut out the middleman. Either the Capitol Hill spenders should go and just let the Fed spend the money it prints, or the Fed should just go and let Washington print the money they spend as they go along.
Don’t laugh. That’s the basis of Modern Monetary Theory that is quickly becoming de facto policy in Washington. It even presumes taxes aren’t even really a necessity for revenue. Taxation is to be used primarily for social engineering: driving people like cattle to do what the authorities want them to do.
But as far as revenue goes, taxes aren’t key to MMT. The theory holds that the government can just print whatever it needs.
Which is what they have been doing all year. So we have arrived.
Meanwhile, Fed economists and officials are hunched over their drawing boards designing different way to insert freshly created digital money directly into citizens’ (and perhaps even non-citizens’) accounts.
One plan involves the creation of something called “recession insurance bonds.” These could be deposited in people’s accounts in advance, whereupon, with the flip of a switch when the Fed deems it appropriate, they could all be activated.
Instant deposits at the time and place of the Fed’s choosing.
Another scheme calls for every American to have a bank account at the Fed.
Cleveland Fed president Loretta Mester explains, “Legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.”
You can read more about such plans in the article from the website ZeroHedge.
There is a madness afoot in the land. Like some weird and very specific economic Alzheimer’s, those afflicted have totally forgotten that wealth in created by production, by goods and services. So they dodder their way into the national debate thinking that they can create wealth with the wave a digital accounting wand.
As long as this malady persists, we recommend you buy gold and silver as fast as you reasonably can. This dementia will ruin the dollar and America’s economic vitality along the way.