Modern Monetary Theory Part 2

Business Insider published an article titled the Trouble With Modern Monetary Theory.

The article reports that “…the government cannot just spend and spend and spend, or the extra dollars in the system will chase too few goods and drive up prices. I totally agree. It’s important to understand that the government cannot just spend recklessly. I’ll say it again. MMT does not give the government the ability to spend and spend and spend. If they spend too much and tax too little, they’ll create mal-investment and inflation.” Warren Buffett, the former CEO of Berkshire Hathaway, is no fan of Modern Monetary Theory. He believes that deficit spending could cause spiraling inflation and that we don’t know where the danger zones lie. God gave us financial principles. In Deuteronomy 28 Moses instructed the nation of Israel to lend to others but borrow from none. The lender is described as the “head,” while the borrower is described as the “tail.” The borrower is also called a “servant to the lender” in Proverbs 22. Unless God intervenes, there’s only one way to stop the practice of government overspending and ever-increasing deficits – and that’s in the voting booth. Our elected officials from both parties are responsible for years and years of excessive spending. What we can and must do ourselves is to save and prepare for more challenging economic difficulties. Someone will have to pay for this – either through higher taxes or the government inflating their way out of it, thereby, punishing the saver. So be watchful. Be prepared. And be prudent.

In my book, Seven Gray Swans, I describe potentially significant events that could happen. A gray swan’s an obvious danger that we tend to ignore. My goal is to show you how to prepare for and survive these economic threats. You can find it online at Amazon.com.