Although the Fed insists otherwise, the central bank really has no tools left except money creation, and the Fed will keep printing money in a panicky attempt to prevent a financial collapse.
Politicians have ignored the threat to small businesses that are failing not because their owners used the wrong strategies, but have been destroyed by the misguided and ineffective forced shutdown.
Monetary economist George Selgin agrees with Bob on the flaws with MMT, but then the two continue their debate (started at the Soho Forum) on fractional reserve free banking.
Savings are the foundation for a productive and advanced economy. Unfortunately, governments insist on policies that make it harder for ordinary people to save.
It becomes clear that ramping up inflation is a tool for those who wish to overthrow the existing economic and social order—to get rid of what little is left of the free market system.
Those who advocate for a "weak dollar" to encourage trade with American firms show how little confidence there is in American industry. Meanwhile, cheapening the dollar punishes savers and ordinary workers.
As confidence in the dollar falls, Americans put more of their money in gold, silver, and cryptocurrencies. State governments can help this process along by deregulating sound money.
As a follow-up to his discussion on MMT with Rohan Grey, Bob goes solo to explain the basic cash balance framework for thinking about money, inflation, and debt.
