I heard you and Mike talk about MMT. What exactly is this?
Modern Monetary Theory (MMT) is a policy model for funding government spending. MMT pioneer and American economist Warren Mosler in his book The 7 Deadly Innocent Frauds of Economic Policy pointed out that there is no financial constraint on government spending as long as a country is a sovereign issuer of currency and does not tie the value of its currency to another currency. Countries like the U.S., U.K., Japan, and Canada, which spend, tax, and borrow in a currency that they fully control. Googled it and you will find a lot of proponents on the far left who like the idea of unlimited creation of money.
Now take a look at how much money the Trudeau government has created out of thin air (Chart on the bottom), and you can well argue that we are already in the midst of applied MMT. But to me it is nonsense. If you end uncontrolled money keep rates at zero percent, you will have an infinite upward spiral in inflation.
Money is destroyed since governments no longer sell bonds…and hard assets soar.