| | | I Dalio’s LinkedIn piece is realistic in acknowledging that MMT, which he thinks is inevitable, needs to be managed by ‘wise men’ - yes, he uses that term.
I’m stunned that someone so purportedly wise doesn’t seem to recognize that in our increasingly partisan society there’s absolutely no way that politics won’t intrude. Wherever there are huge amounts of public funds to be spent, politicians will be there.
And that is precisely where Dalio fails. I say that with all requisite humility because, really, I’m just some anonymous poster in a obscure corner of the internet. And he is the Big Swinging D**k of finance. Nonetheless, here goes:
In the US, our Constitution enshrines power over the public fisc to Congress. Dalio’s ‘wise men’ idea would require major Constitutional changes. And I do mean major. If anyone thinks that Congress would voluntarily abrogate control over trillions, then I suggest a remedial course in human nature.
Isn’t happening.
Dalio’s dreaming if he thinks American ‘wise men’ will manage MMT. Even if theoretically sound, a doubtful proposition, MMT in the US cannot be managed by Dalio’s ‘wise men.’ In fact, his piece can be read as a job application for a job that will never exist.
Dalio-style MMT in the US is a pipe dream.
However, this doesn’t mean that ‘in-practice’ MMT won’t happen. It might well be happening now as interest rates go down, QE might resume, etc. If Trump loses, it will be on us, managed by Dem pols. If he gets re-elected and keeps spending and creating debt, the inevitable simply gets delayed somewhat. But the trend is as clear as a bell.
Trends in spending and debt suggest a variant of MMT is in its infancy. The monster is in utero.
Go(l)d help us. We are in for a hell of a ride. |
|
