Random friday largest economies by 2030, mmt, regime change economic collapse news

A survey of U.S. investors with $25 million or more finds their average age dropped by 11 years since 2014, to 47. These fabulously rich Americans, whose ranks have more than doubled since the depths of the Great Recession, are younger than less wealthy millionaires. The average age of those with at least a mere $1 million is 62, a number that hasn’t budged in years.

As I read through articles on MMT ( Modern Monetary Theory) this morning, it strikes me that not only is it a recipe for massive inflation but it will also cause chronic depression and capital consumption from the get-go. The newly printed money will not cause an initial economy-wide boom because it will not be injected through credit markets driving down interest rates and stimulating investment.

Rather it will go directly into the Treasury, allowing the government to immediately increase its spending on welfare programs, guaranteed-job programs, the “Green New Deal,” and wasted “investment in infrastructure.” It will thus siphon off labor and other resources from productive investment in the structure of production and forcibly increase the consumption/saving ratio and hence overall time preferences, reducing genuine savings and capital accumulation.

Furthermore, as price inflation begins to rear its head, the increase in taxation aimed at “sopping up excess purchasing power” by the private sector, will further increase the public’s time preferences, reduce voluntary saving and eventually cause capital consumption. Everyone will have jobs and rising money incomes and there will be a boom for government contractors so it will not look like a typical depression, but living standards will progressively decline. Also, the private sector will progressively shrink relative to the State sector because BOTH the fiscal inflation AND the later increase in taxes to offset its inflationary price effects will divert resources to the State sector. And of course the recurring increases in taxes will not arrest the inflation, because the government will continue to run fiscal deficits by financing its ever increasing spending with new money. This would be the worst of both worlds: massive inflation proceeding hand in hand with chronic depression.

Tweet of the Day: Regime change is on the menu again, but this time in Venezuela. The U.S. government can’t even help itself, even if it is headed by someone who has railed against America’s foreign policy of the last 20 to 30 years. What’s interesting about the Venezuelan situation are the various viewpoints: one group thinks Nicolas Maduro’s election is legitimate, but still accuse of Trump’s election of being illegitimate; socialists who championed Venezuelan socialism years ago are now supporting regime change; Trumpsters who lamented previous actions in Libya and Syria but endorse this move; and many more.

Video of the Day: The 2020 Democratic primary season is upon us. As the growing field of Democrats attempt to prove that they are morally superior to President Trump, their past will inevitably come up. Senator Elizabeth Warren thinks she’s Native American, Senator Kirsten Gillibrand supported many of the policies of Trump, and Senator Bernie Sanders has to deal with #MeToo. Here is a compilation from the fine folks at the Washington Free Beacon: