September 2020, Chicken Little Portfolio Performance

There is one central economic question today. Can a country become rich by government deficit spending financed by the Central Bank 'printing' money. The current name for this idea is MMT - which stands for Modern Monetary Theory (click here for my review of MMT). 

The US Federal Government Spends, The Fed Prints. 


Modern Monetary Theory: Print and Spend to Prosperity?

Modern Monetary Theory  (MMT) argues that a country can become rich by government deficit spending and e-printing of money. In fact, countries all over the world have implemented MMT. The US government, for example, is running the largest deficit in history, and the Federal Reserve has paid for the deficit by creating money.  Click here for an academic review I wrote on MMT. Be forewarned that while MMT seems silly, mainstream economics may be sillier. 

Stone Money on the Island of Yap