Is there a logical limit to the Fed’s Making Up Money interventions? Briefly – as in flash-in-the-pan Making Up Money under the guise of playing Modern Monetary Theory seems to work. The Fed throws how much? $6-trillion is it? And the price of paper goes up.
But, in the long run, is it viable? We think not. And there’s strong economic reasons why MMT seems to work in the short run, but in the long run, malinvestment and economic distortions not only remain – they also grow.
We will take a high-dive into this end of the pool after some more reasonable stories: The global outbreak of death and the shameless promotion of an injectable solution to all that ails us.
First, however, a few choice (,maybe even prime) headlines, and the ChartPack. As the U.S. Fed continues ice skating with nitro glycerin.
No podcast today. Just too damn busy this week. If you like audio, though, you can right-click on some browsers (like MS Edge) and have the column read to you…