Standard Keynesian theory posits that if the economy slows, government can revitalize it by increasing spending, which supposedly creates new demand. But government can't create something from nothing.
Adherents of MMT present their ideas in the form of a hydra. Shoot down one idea and another pops up that is just as preposterous. This is no accident.
Nickel is a base metal the government used to replace silver. Since then, the government has inflated so much that even nickel is too valuable for US coinage.
Most people—and especially most economists—not only are ignorant of what money actually is, but how and why it became part of our economy in the first place.
Fed chairman Jerome Powell recently claimed they were "targeting" the "neutral" interest rate. The Fed cannot set or even know that rate, for it doesn't come from government authorities.
While the usual characters praise central banks for supposedly bringing economic stability, Dr. Shostak explains that their presence makes things unstable because they break the relationship between saving and lending.
