"All models are wrong, some are useful," George Box.

We need a new plan, Stan. MMT is not a useful model, except for the political class. Unfortunately, we're not easily dislodged from appealing and popular, but fatally flawed hokum and scapegoating. Witness socialism and anti-Semitism.

Aristophanes's stick-in-the-well experiment proved conclusively that the earth was round about 240 b.c., but flat-earthers abounded when Columbus sailed in 1492, more than 1,700 years later.

MMT is our current flat-earth equivalent, in monetary model, but it most certainly won't last 1,700 years. I like the notion of a PPP-based distributed ledger being used to reckon value in lieu of majority vote of the ignorant and gullible which we now have. But I don't like the notion of, say, $190 million disappearing because someone forgot his password.

I don't see anything changing until we hit the wall...hard. I've begun to think the best bet is to simply transition entirely into tangibles of all forms that they can't print. We're trained now to accept two percent inflation as wise policy, but It cuts purchasing power in half every 35 years, obviously serving debtor interests and their partner, banks. Yet, the inflation-is-good hokum persists, despite the country having been built out in the largely DEFLATIONARY nineteenth century.


Global Economics