The Game is Rigged: Modern Monetary Theory & The Great Reset

I'm reading a few books right now involving economic principles, history, and investing, such as:

Applied Financial Macroeconomics & Investment Strategy - A Practitioner's Guide to Tactical Asset Allocation by Robert T. McGee

100 Baggers Stocks that Return 100-to-1 and How to Find Them by Christopher Mayer


But with global leaders such as Christine Lagarde, Janet Yellen, and other talking heads like Klaus Schwab of the World Economic Forum, Stephanie Kelton, and our "free stuff for everyone" US government, I can't help but question the historical precedent and economic principles of centuries past.

If the economic authorities successfully implement Modern Monetary Theory (which is their plan, they have openly stated this), will any of these principles which have remained true for so long even apply?

I know I'm painting with broad strokes here, and it's an over-simplification, but I want to hear from the bright minds on ATS.

Quick context for those not familiar, Modern Monetary Theory (MMT) was laughed at by politicians and economists alike just a few short years ago, but now our top global leaders are pushing ahead with policies and plans that are 100% in line with the MMT ideology and economic approach.

MMT essentially says that (for us here in the USA) the US doesn't need to worry about debt, we can literally fund any programs we want (Green New Deal, forgive student loans, Universal Basic Income, buy all of our own treasuries, etc.). Because we "print" our own currency, we can just keep printing. If inflation picks up "too quickly" they can increase taxes or pull other levers to try to contain the inflation.

The US is in a particularly precarious situation because of our (now multi-) trillion dollar budget deficits - we buy so many products from other countries and do not produce/export very much at all in comparison.

When foreign nations no longer want US treasuries (which is a growing trend in recent years, with China, Russia et. al), MMT policymakers say we can buy our own treasuries instead.

After the Bretton Woods agreement the US became the world reserve currency and foreign nations could always "redeem" US dollars for gold. Nixon took us off the gold standard in 1971 because the global financial system outgrew that system and having USD convertible into gold was no longer feasible (I may be oversimplifying so others, feel free to chime in, but I'm trying to paint the picture concisely so not including every applicable detail).

In 1974 the US was able to convince Saudis & OPEC to trade oil exclusively in dollars, hence the "petrodollar" system you've probably heard of. Many countries are using alternatives to the dollar to purchase oil (including Russia, China).

The confluence of factors here (skyrocketing national debt, US budget deficits and non-producing economy, petrodollar system is in late stages and it appears USD as World Reserve currency is also in late stages) means politicians have no choice but to try to keep the game going as long as possible in the biggest ponzi we've mankind has ever witnessed.

So back to my original premise, if the global financial system is literally becoming this much of a joke should I even waste my time studying the ins and outs of TRUE economic history and precedent or am I just playing myself?

Maybe I should just stick to my apocalyptic books such as

The Fourth Turning by Neil Howe and William Strauss

and

The Great Leveler Violence and the History of Inequality from the Stone Age to the Twenty-First Century
by Walter Scheidel

My heart tells me that knowledge of history is always valuable, but maybe at this point it makes more sense to study this joke of an economic approach that they call "Modern Monetary Theory" so I can better set myself up and hedge my bets while I still can.



Edit to Add


To expand on the MMT roadmap (in the US at least), the grand plan is to merge the Balance Sheets of the Federal Reserve and the US Treasury, and having US citizens have their own "account" directly tied to the Federal Reserve where there will be "digital-only dollars" and complete control & visibility for TPTB to observe & tax every single transaction of yours.

That's the US version but the EU also has a same plan (as do probably many of the other "developed" nations) - citizens will have bank accounts at the ECB and China's "social credit score" type of system will be implemented on the West as it is in China currently.

China has already rolled out their sovereign cryptocurrency, the digital yuan and are expanding its use into Beijing and other major population centers: China’s digital currency: Beijing, Shanghai and Guangdong commit to new digital yuan trials in 2021

That is my understanding after researching public statements by these leaders in power, the academics such as Stephanie Kelton who is arguably the most "prominent" and well-known economist pushing for MMT (close to the Biden administration, might I add), as well as the institutions such as IMF, World Economic Forum, US Government, Federal Reserve/FOMC and other talking heads at central banks.

Kelton will be working on the Biden/Sanders "Economic Unity Task Force", BTW.



A few quick items on Stephanie Kelton, who I keep mentioning:

The Economist Who Believes the Government Should Just Print More Money

Dr. Stephanie Kelton Recruited to Work on Biden/Sanders Economy Unity Task Force

if you want to hedge your bets buy bitcoin, litecoin, and silver. The stock market is rigged and any monetary theory is so far outdated that it doesn't even matter. Sounds like a waste of time to me.

Bitcoin was created for this exact reason. While all these paper and credit dollars flow into hard assets the stock market will hyper inflate also. The more money printed the less available trustable digital landscape. Buy your plots now while they are still cheap.

The only thing they can do at this point to keep the system from collapsing is print trillions of dollars a month. Pedo Joe Biden is the chosen idiot to sell out the American people. He doesn't even know what he's signing. He's a modern day Woodrow Wilson except he doesn't give a # about Americans and is a Communist Revolutionary agent picked out for this specific purpose. (the emotional dems won't understand this)

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.” — President Woodrow Wilson, 1916

But this time we have choice to chose a new monetary system.

If you keep your money in the US dollar you are funding terrorism, human trafficking, war, starvation, war, more war and death, and you probably don't give # because you have no morals.

Karma will bite you in the ass for being so ignorant. I'm not directing this at you FamCore just arrogant assholes in general. They will lose everything before admitting they were wrong.

a reply to: booyakasha

I understand the BTC argument. The fact of the matter is governments are not going to adopt BTC or allow the continuation of what we're currently seeing in the crypto markets (central banks and TPTB are not going to stand around doing nothing while they lose their power to a decentralized peer-to-peer payment & currency transaction system):

Janet Yellen, former Chair of the Federal Reserve and now Treasury Secretary of the US:

Janet Yellen Says Cryptocurrencies Are a ‘Concern’ in Terrorist Financing

Christine Lagarde, former Prime Minister of France and now President of the European Central Bank:

Lagarde Blasts Bitcoin’s Role in Facilitating Money Laundering


Are you seeing a pattern here, booyakasha?

So far, one comment about Bitcoin but the thread is off to a lackluster start lol guess I’ll check back in the morning and maybe try to resuscitate if still no traction

This is a topic worth exploring... work with me ATS

MMT remains a relatively fringe view amongst main stream economics and Yellen for example has been critical of it. So I am not sure its correct to say that they have openly said they plan to implement that. Happy to be shown otherwise however.

I think it is also important to distinguish between MMT as a description of how economies ( in particular government finances) work and policy prescriptions that come from that theory (that may also be shared by other theories).

I also haven't seen anything about a plan to merge the federal reserve & treasury or people to have direct accounts there. MMT describes both the fed and treasury as part of the government (which in view is entirely correct) but that isn't a plan to merge them.

Perhaps you could elaborate on why you think MMT is a joke of a theory?

originally posted by: FamCore
a reply to: booyakasha

I understand the BTC argument. The fact of the matter is governments are not going to adopt BTC or allow the continuation of what we're currently seeing in the crypto markets (central banks and TPTB are not going to stand around doing nothing while they lose their power to a decentralized peer-to-peer payment & currency transaction system):

Janet Yellen, former Chair of the Federal Reserve and now Treasury Secretary of the US:

Janet Yellen Says Cryptocurrencies Are a ‘Concern’ in Terrorist Financing

Christine Lagarde, former Prime Minister of France and now President of the European Central Bank:

Lagarde Blasts Bitcoin’s Role in Facilitating Money Laundering


Are you seeing a pattern here, booyakasha?

haha and you think those idiots can do anything about it? you're completely ignorant.

what are they gonna do? blow up the internet? ban electricity? tell you you're not allowed to use it? oh no...

governments will be forced to use bitcoin if they wait too long. The ones that adopt it early will be wealthy. The US will most likely be last. There's already governments accepting it for taxes.

You want peace and equality but you're afraid to put your money where your mouth is.

a reply to: booyakasha

what are they gonna do? blow up the internet? ban electricity? tell you you're not allowed to use it? oh no...

Sounds like a dare, id advise against this.

We both know bitcoin actually plays into a governments strengths. See China regarding BTC as an example.

Even at that, crypto still wins.

a reply to: FamCore

Bitcoin is designed to subvert legislation and regulation. It may become more difficult to trade however those who prophesize its demise don’t understand the underlying technology. Bitcoin is here to stay, although it’s future value is uncertain it will never be worthless, short of the apocalypse.

a reply to: Grenade

I have no doubt there will be individuals and entities who still possess and use BTC in the future, but for the average Joe like myself, if (and when) governments get to the point of labeling sale of or possession of cryptocurrencies as a money-laundering or terrorist-related crime, I'm not going to be hodling any longer.

Others might take the risk but with the economic situation and state surveillance programs that are more robust than probably at any time in history (at least in the US), I wouldn't be risking my freedom for that and neither would a lot of other people

a reply to: FamCore

Unless of course it becomes a digital form of gold and the standard for which government issued crypto is based. The days of bullion being carted around in chests are over.

a reply to: ScepticScot

A few resources that help illustrate some of the points made in the OP:

From the World Economic Forum: A digital currency should be adopted as the world's leading reserve currency

And one from the IMF:
Winds of Change: The Case for New Digital Currency

An excerpt, specifically mentioning EU citizens having an account held directly at the ECB, using digital sovereign cryptocurrency (written by Christine Lagarde herself):

Let me be more specific: should central banks issue a new digital form of money? A state-backed token, or perhaps an account held directly at the central bank, available to people and firms for retail payments? True, your deposits in commercial banks are already digital. But a digital currency would be a liability of the state, like cash today, not of a private firm.

This is not science fiction. Various central banks around the world are seriously considering these ideas, including Canada, China, Sweden, and Uruguay. They are embracing change and new thinking—as indeed is the IMF.

originally posted by: FamCore
a reply to: ScepticScot

A few resources that help illustrate some of the points made in the OP:

From the World Economic Forum: A digital currency should be adopted as the world's leading reserve currency

And one from the IMF:
Winds of Change: The Case for New Digital Currency

An excerpt, specifically mentioning EU citizens having an account held directly at the ECB, using digital sovereign cryptocurrency (written by Christine Lagarde herself):

Let me be more specific: should central banks issue a new digital form of money? A state-backed token, or perhaps an account held directly at the central bank, available to people and firms for retail payments? True, your deposits in commercial banks are already digital. But a digital currency would be a liability of the state, like cash today, not of a private firm.

This is not science fiction. Various central banks around the world are seriously considering these ideas, including Canada, China, Sweden, and Uruguay. They are embracing change and new thinking—as indeed is the IMF.

First one is opinion piece on the benefits of a digital reserve currency. Not something that would likely be supported by MMT that tends to strongly favour sovereign currencies (most MMT writing opposes the Euro in current form).

Second is talking about issuing digital currency directly. Since i suspect most people who actually use digital currencies(as opposed to just investors) tend to see decentralisation as am advantage not sure i personally see that as likely to fly.

Both interesting topics but not sure where the MMT part comes in?

originally posted by: FamCore
So far, one comment about Bitcoin but the thread is off to a lackluster start lol guess I’ll check back in the morning and maybe try to resuscitate if still no traction

This is a topic worth exploring... work with me ATS

It's too complex for the average poster since it doesn't deal in partisan politics.

The long term sustainability of printing money to buy our own Treasury Notes, that's the real issue, not foreign nations as we own the bulk of our own debt, is not viable.

originally posted by: AugustusMasonicus

originally posted by: FamCore
So far, one comment about Bitcoin but the thread is off to a lackluster start lol guess I’ll check back in the morning and maybe try to resuscitate if still no traction

This is a topic worth exploring... work with me ATS

It's too complex for the average poster since it doesn't deal in partisan politics.

The long term sustainability of printing money to buy our own Treasury Notes, that's the real issue, not foreign nations as we own the bulk of our own debt, is not viable.

Its all the fault of Trump/Biden (Delete as appropriate).

That should help

a reply to: ScepticScot

Yeah, that's usually how it works, people don't want to understand the deeper mechanics of it all.

originally posted by: AugustusMasonicus

originally posted by: FamCore
So far, one comment about Bitcoin but the thread is off to a lackluster start lol guess I’ll check back in the morning and maybe try to resuscitate if still no traction

This is a topic worth exploring... work with me ATS

It's too complex for the average poster since it doesn't deal in partisan politics.

The long term sustainability of printing money to buy our own Treasury Notes, that's the real issue, not foreign nations as we own the bulk of our own debt, is not viable.

Thanks for the contribution and I do agree with your comment.

Further, some of the most sophisticated people in the market agree that at some point we will likely run into very precarious situation where the Fed must either act (or neglect to act) to help backstop the bond market (which would have dire consequences for the USD).

TPTB don't want to allow big institutions to fail but by buying all of that debt up foreign nations will take note and the value of the dollar relative to other currencies will fall drastically

a reply to: FamCore

Other nations currency will collapse with the dollar though, some faster, some slower. Physical assets will sky rocket in value. Silver might be the investment of the century if these Wall Street Bets guys actually plan on destroying the shorts.

a reply to: FamCore



"Modern-day" economics originates with the democracies stemming the Great Depression and enacting the means to prevent another economic meltdown. The outbreak of WW2 interrupted or aligned with FDR's New Deal. Wartime production and mobilisation are responsible for the U.S. enjoying full employment. Broadly, in the next two decades, economic theory is devoted to wiping out or reducing unemployment. In the U.S. the Marshall Plan spurs on domestic industrial production and is based on what is today called Geoeconomics.

In the 1970s, the cocktail of ineffective economic measures and global events led to a slump. The waves from the oil shock are felt globally. The U.K. was joining the European Community, terminating Australia and New Zealand's traditional export market. New Zealand is hit for six, and Australia off-sets their loss by mining and exporting iron ore.

In New Zealand, Robert Muldoon's insane fortress economic policies nearly bankrupted the country. Across the ditch, Malcolm Fraser is unwilling to have his government undertake economic reforms. In short, militant unionism is a plague in both countries.

Free Market reforms are the cure to the economic ills of the time. However, the period the 1980s left separate legacies based on geography. In New Zealand, political turbulence encompasses Labour chop and changing prime ministers and economic restructuring without public consultation or long term thinking. In contrast, Bob Hawke is the finest Prime Minister to come from the Australian Union movement. Hawke's intellect and consensuses approach with unions and the business community ensured that Australia enjoyed sensible policy changes and less societal trauma.

Yet none of this explains the GFC or the Federal Reserve printing money to keep the U.S. economy afloat. The distortion of Free Market economic principals comes from numerous sources. At the same time, Hawke is establishing APEC, in the U.S. special interest groups are lobbying for what became NAFTA. I am not sure what congress overturning The Glass–Steagall Act was meant to have achieved.

Free Markets are perceived as the Reagan/Thatcher Magic Bullet that stand-alone ended the Cold War. In New Zealand, the Magic Bullet is an en economic magic potion that ensures there is no need for an industrial base or blue-collar trade apprenticeships. Of course, all these distortions are utter nonsense. The U.S. economy is reaching the tipping point. The Federal Reserve rolling out money like toilet paper only serves to paper over the cracks.

a reply to: AugustusMasonicus

IMO, the problem is only going to get worse. In New Zealand's school's: Students are more likely to climate change protests, and in the earlier years, have their teachers policing their lunches. Learning basic economics is considered a relatively unimportant subject.

Neither do schools teach history, geography and economics to develop pupils critical thinking skills? The education aspect of New Zealand's school system is vanishing.

MMT essentially says that (for us here in the USA) the US doesn't need to worry about debt, we can literally fund any programs we want (Green New Deal, forgive student loans, Universal Basic Income, buy all of our own treasuries, etc.). Because we "print" our own currency, we can just keep printing. If inflation picks up "too quickly" they can increase taxes or pull other levers to try to contain the inflation.

Yes, and well no. As of this point, yes are essentially "printing" our own money.

But you can't control inflation, not with the "toolbox" being employed by the central banks. Hell Japan tried that smit and all i know is candy bars now cost north 100 yen.. ya dig?

It's already out of control, imo. USD's everywhere (the physical note). Not even in America im talkin bout and they want to say they can control that? You willing to bet your life on it?

The US is in a particularly precarious situation because of our (now multi-) trillion dollar budget deficits - we buy so many products from other countries and do not produce/export very much at all in comparison.

Let's see. How long would you stay in business if you did business with someone that did not pay their bill in full? And it was like, your only customer.

It's equal. It's just that it's kind of hard to itemize truck loads of weapons, i mean work with us baby! Can't have dem peoples asking question. Buy yea. Software. Dictators. Hardware like the Iron Shield. Or was it the Patriot Missile System? Okay, so we equal it out with warfare...

When foreign nations no longer want US treasuries (which is a growing trend in recent years, with China, Russia et. al), MMT policymakers say we can buy our own treasuries instead.

After the Bretton Woods agreement the US became the world reserve currency and foreign nations could always "redeem" US dollars for gold. Nixon took us off the gold standard in 1971 because the global financial system outgrew that system and having USD convertible into gold was no longer feasible (I may be oversimplifying so others, feel free to chime in, but I'm trying to paint the picture concisely so not including every applicable detail). In 1974 the US was able to convince Saudis & OPEC to trade oil exclusively in dollars, hence the "petrodollar" system you've probably heard of. Many countries are using alternatives to the dollar to purchase oil (including Russia, China).

I remember when folks said "Once the Petrodollar, the US is doomed, hahaha!" (okay, so I said it. Once. Billion times). China broke away and says pay in Yen. Saudi Arabia said, "it spends like USD!". Russia said "Ruples only". Everyone's like "it spends like USD eh? Plunging USD.. can i get that in euro instead?".

The reserve currency and Saudi Arabia is important because it creates an artificial demand. Countries need oil. They will need to buy it. . They will need to buy USD so they can buy oil and other weapons they can use on their own countrymen i mean, weapons for defense. Like Taiwan.

As for MMT. Yawn. We're doing that now, we past that rubicon when dat rona hit. The Fed just uses smaller banks and hedggies to wash it. But they turn around and buy those plucking treasury notes right from the banks AND GIVES THEM EXTRA CHEESE ON TOP! WTF!

Hey Wells Fargo or some other shady ish my homies founded just so he and his fam can in on this scam. Buy these treasuries from me, wait a couple of days, i'll buy them back, the government gets it's fiat currency (USD) and i'll hook you up with a lil sumthin to keep you quiet eh? We good?

Nixon took us off the gold standard to pay for the Vietnam War. US couldn't not pay for it, or other things, while it was still pegged to gold. Soon as it was decoupled, those printers spun up but nothing compared to what we have now.

I mean, we got paid in Vietnam. And so many Hueys. And Platoon. And so much money. So so much money...

The confluence of factors here (skyrocketing national debt, US budget deficits and non-producing economy, petrodollar system is in late stages and it appears USD as World Reserve currency is also in late stages) means politicians have no choice but to try to keep the game going as long as possible in the biggest ponzi we've mankind has ever witnessed.

More less. They keep it going because who wants to have egg on their face or be the ones holding the bag?

Don't get too worried. We'd f---k someone up, oops, i mean invade, damnit.

Liberate another country before it goes that far. Nothing distracts like, oo shiny ball!

So back to my original premise, if the global financial system is literally becoming this much of a joke should I even waste my time studying the ins and outs of TRUE economic history and precedent or am I just playing myself?

No one knew it was going to run this far. Cut us some slack okay! Damn, balanced deficits, sound money, you sound like my grand parents. The smart money left the stock back in 2008. 12 years ago. Where'd it go? You think Banksy likes his paintings going for over 100 mil? Other paints going for dumb prices. Everything is distorted dude.

But yea, in 08, that's when our monetary system stopped but thats my opinion. Since then, its been nothing but bailouts. Literally bailouts! That was when it was worth studying old models. Doing your homework. Breaking out the accounting calculator. The market still followed those rules. Those guidelines. THOSE LEGISLATIONS

But those checks and balances are gone. And so are the markets. So are the theories. Smart and old money left the stock market. All that is left are suckers and those poor poor hedge funds. And i'm talking about the actual hedge funds like, the pensions of unions, or the BlueCross BlueShield. I feel for them, they have it hard. Haaarrrddd. There is no money out there. And rather than it burning down so new roots and plants can grow its just going on and on and on. And bearing no fruit.

That is what the Fed did. Economic theory doesn't work because the Fed is making the market. But, it can't do it forever so. Better safe than sorry bud.

Just don't study only that.
And get different view points.
Don't just stick to on.
And try different camps.

Wish you luck. I tried but i kept going to sleep on economic history, i kept defaulting to the cliff notes on the long stuff.