Modern Monetary Theory vs Crypto (ft. Inflation, Ronald Reagan)Modern Monetary Theory (MMT) is not a "magic money tree" like a lot of (privledged) people say it is. The money for it comes from:
- Leveraging the US Dollar's credit rating in exchange for short-term loans
- Collateral from debt and related interest rates
- Increasing the gap between inflationary assets (whom lean in favor of the wealthy) and labor wages, which often goes unnoticed
One thing to note is that instead of raising taxes (which nobody wants to do) the government has been inflating the valuations of assets like real-estate in order to compensate for loss of taxable revenue. The reason why the Federal Reserve isn't likely to increase interest rates, even if they could.
Crypto is disruptive to the finance industry because it gives the power of asset ownership to the wider public, which ends up in competition with traditional asset classes like real-estate and stocks. And crypto is winning so far, which is the reason why you hear a lot of cries of "foul play" from the other side. 😭
Traditional finance falls apart when people default on their loan (literally unable to pay it back due to hopelessness), which we briefly saw in 2008, which they covered up with band-aid policies that could come off at any moment. I'm trying to figure out the timing of this right now but it hasn't been easy. But we do know it's coming soon, because COVID has accelerated the trends towards this stuff even more as the government continues to have no plan for how or when this train is going to end. It's only a matter of time.
Either way, hold on to your butts, folks.
Link to NFT:
opensea.io
