MMT
MFS Multimarket Income Trust
Mentions (24Hr)
0.00% Today
Reddit Posts
Sage Potash (SGPTF SAGE.v) secures a key water rights permit - an essential milestone on its path to production
What if we’re wrong about Bitcoin? What if we’re wrong about money, central planning, debt-based leverage, and MMT?
I'm really liking the looks of LiDar tech and would love some more info/insight into the space.
With the potash market experiencing significant growth as demand continues to outpace supply, it's critical for the US to develop its own domestic supply & Sage Potash (SAGE.v) is one company that is on track to take advantage of this opportunity.
Russia & China have a stranglehold on the world's food security. The US is 93% dependant on inconsistent foreign potash imports to support their agriculture industry... This little company in Utah has the solution - A due diligence summary on Sage Potash Corp - Ticker SAGE.V
Question on the intersection between MMT, CBDC, ETFs, and Liquidity?
Opening up Pandora’s box of ETF distributions
$GCAC - Growth Capital Acquisition Corp to combine with Cepton, a maker of "high performance MMT® lidar solutions", for $1.5 billion
Why I think Alibaba is about to bottom here soon and soar over next 2 years.
IVR and other mREITS, why they gonna rocket in July. A+B+C=🌕
Inflation is here, but the media do a poor job covering it. Here is a brief DD having followed this topic closely since 2008
2021 expectations ( all not financial advice all my humble imho )
Hedge time after Fed powell confess that inflation
Masterpiece for investment from Egon von greyerz suck me and read and read . Pls upvote so everybody read
MMT Stephanie Kelton on infrastructure and the economy: The Deficit Myth - The Politicus
SLV is a complete scam, its a scalp trade set up by banks to screw over investors. Avoid it at all costs. The silver market is and has been rigged for decades
Mentions
"Hey Siri which generation was in charge of the GFC and long term MMT debt expandion"
MMT gang rise up. Were one more QE from full employment, trust!
So they do believe in MMT after all huh
its true that its fake internet money, but i think it stays above zero dollars just because its finite whereas MMT is all about cash being infinite and the only limiter is JPow's mood.
AI spending along with the fed desperately butchering the dollar to support it with no other option to save the economy is EXACTLY what i wanted to finally prove the imbeciles who support MMT like Paul Krugman to be quacks who have ZERO clue how economics works. Knock knock, its Austrian school of economics.
Dude. Read some MMT. Private sector can't run at a surplus without the public sector issuing sovereign currency running at a deficit so the private sector has currency to use. It's just basic accounting. If everything sums to zero, someone has to be negative for the private sector to be positive.
Gold is kind'a funny. It does hold value as an asset (against fiat currencies). However, gold tends to fall when the market crashes (falls) because people that have made leverage buys and need to cover them also often hold gold and sell it to cover. Inflation is a function of having a fiat currency (doesn't matter the country). It's a "feature" of MMT. US bonds have "minimal risk" as does Swiss bonds (as well as some other countries). They will be affected by inflation and currency exchange rates. Physical gold will tend to hold value over time. It's usually not overly easy to exchange for goods and services (in most places). There are some interesting gold "cards" that break into 1 gram pieces, but 1 gram of gold today is worth \~$130 USD, and making "change" ain't easy. If you are living in a country and plan to continue that, then you are going to need a currency acceptable within the country (to buy food and such). In the US a lot of people buy stock as a hedge against inflation because "corporations try to maximize their profit" ... which is to say assets generally index with inflation. All financial instruments have some element of risk associated with them. If you really want to go the precious metals route, buy from some place you trust and buy a mix of metals (silver, even copper) as well as gold.
Would u believe if I told u that I opened a long position on a new coin called MMT right when it was launched, I put $5 with 37x leverage… after work I come home and check my phone I’m up %30000/$1200 gain…😀
Check the official link: (wsbets won't allow the ".gov link) * This historic agreement includes Chinese commitments to: * Halt the flow of precursors used to make fentanyl into the United States. * Effectively eliminate China’s current and proposed export controls on rare earth elements and other critical minerals. * End Chinese retaliation against U.S. semiconductor manufacturers and other major U.S. companies. * Open China’s market to U.S. soybeans and other agricultural exports. **CHINESE ACTIONS:** * China will suspend the global implementation of the expansive new export controls on rare earths and related measures that it announced on October 9, 2025. * China will issue general licenses valid for exports of rare earths, gallium, germanium, antimony, and graphite for the benefit of U.S. end users and their suppliers around the world. The general license means the de facto removal of controls China imposed in April 2025 and October 2022. * China will take significant measures to end the flow of fentanyl to the United States. Specifically, China will stop the shipment of certain designated chemicals to North America and strictly control exports of certain other chemicals to all destinations in the world. * China will suspend all of the retaliatory tariffs that it has announced since March 4, 2025. This includes tariffs on a vast swath of U.S. agricultural products: chicken, wheat, corn, cotton, sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products. * **China will suspend or remove all of the retaliatory non-tariff countermeasures taken against the United States since March 4, 2025, including China’s listing of certain American companies on its end user and unreliable entity lists.** * **China will purchase at least 12 million metric tons (MMT) of U.S. soybeans during the last two months of 2025** and also purchase at least 25 MMT of U.S. soybeans in each of 2026, 2027, and 2028. Additionally, China will resume purchases of U.S. sorghum and hardwood logs. * China will take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China, allowing production of critical legacy chips to flow to the rest of the world. * China will remove measures it took in retaliation for the U.S.’s announcement of a Section 301 investigation on China’s Targeting the Maritime, Logistics, and Shipbuilding Sectors for Dominance, and remove sanctions imposed on various shipping entities. * China will further extend the expiration of its market-based tariff exclusion process for imports from the United States and exclusions will remain valid until December 31, 2026. * China will terminate its various investigations targeting U.S. companies in the semiconductor supply chain, including its antitrust, anti-monopoly, and anti-dumping investigations.
Better hope MMT is right I guess.
Trumps gonna try stack the fed with cronies, undermine independence and implement MMT ideas like money financed fiscal expansion Inflation is gonna balloon and usd will be crushed Hence gold will continue to boom
Yes. People criticize MMT as a failure. Nobody has actually done MMT. Nobody has done the tax part.
IMO, MMT is right - but the trick with MMT is that after you put money in the top of the economy machine and all the gears spin, you take the money back from the basket it ends up in. The wealthy are that basket, and instead of taking that money back out, we're leaving it there to rot, and we're also stopping putting money into the machine. So basically the exact opposite of what you're supposed to do with MMT.
I've been saying for awhile that either MMT is right or we are screwed. The third option of fiscal responsibility and a "normal" economic cycle is out the window because nobody can tolerate a downcycle.
Not untrue, but inflation eats value. Cumulative inflation from 1975-1985 was 100%, which was part of the reason you could get a 15% bond then. That $ today is worth less tomorrow. People trust MMT when times are good and mistrust it when times aren't. It is impossible (for me) to predict and time these things. Gold is out an all time high and the VIX is relatively low, that suggests instability. Low interest money encourages risky behavior. If businesses were magic money machines that could easily multiply $ invested, stock buybacks would never occur, because that $ would be better spend growing the actual business. I don't see any practical ways of shrinking the debt at this level. Spending continues to increase by leaps and bounds, no will to decrease that or increase taxes. Devaluation of the currency can only proceed so quickly especially in the face of rising unemployment. The system is designed so that the $ can never really default, but hyperinflation isn't out of the question. A 100% cumulative inflation from 2025-2035 seems quite likely, especially if we are talking about real inflation, not the underreported CPI. CPI reported inflation from 2015-2025 was \~36%. Median home price 2015 was 275K, in 2025 it's closer to 425K ... does that sound like 36%? A lot of market returns get muted when you adjust for real inflation. All this will come home to roost. Don't know how, but I'm pretty sure it won't be good.
Step one. If you have any high interest debt, pay it off first. If you are paying 30% on a CC debt, pay it off. If you have home debt or are considering buying a house, maybe some of this might go toward that. \--- "Markets can remain irrational longer than you can remain solvent" is attributed to economist John Maynard Keynes. Will the market plunge 50% next week ... maybe. Will it go up another 10% ... maybe <shrug> Are you playing the long game or the short one. It is notoriously difficult to time the market. Humans are often better at seeing the downside (risks) than the upside. Typically, we feel the pain of lose more strongly than the joy of gain. If you buy a stock for $50, then watch it go to $100, then watch if fall to $75 ... a lot of people feel like they lost $25, rather than they are up $25. If you are in it for the long term ... 30 years you will probably be ok buying a good index fund (or a mix with at least some exposure to foreign markets). Get as much of that $ as possible into an IRA for the tax advantage. Find a good broker (fiduciary) that can offer advice if you feel uncomfortable with the process. If you feel like you can trade on your own (or want to use this money to learn) you can use an online broker (ex: etrade). If you do this my advice is don't hang on the clear losers out of hope and don't be afraid to sell all or part of winners. If your research leads you to a stock that goes up 100%, consider selling half and keeping half invested. Yes, it could reduce your return. However, at that point you basically have you seed money back and free stock that is easy to hold longer term. Remember if you are trading in taxable account, every trade will need to be reported on your 1040. We could easily have a bad market for quite a long time with low returns. You can bet on the market or against the market (something like VIX). If you are very brave you can do short selling, I wouldn't recommend it. You can play with selling out of money options to improve returns but that can bite you too because sometimes "out of the money" becomes "in the money" ... but not your money. Values stories like GLD (gold) and SLV (silver) and work for you during times of stagflation. One this is for sure the value of the dollar is going down but against the currencies of better run currencies and within the US (inflation). However, inflation is a built in feature MMT and fiat currencies. Real assets tend to index with inflation, salaries do not, because the US Government intentional misrepresents inflation via the CPI. Do consider seeking out some professional help via a fiduciary. Might cost you a bit and save you a bunch.
I agree. If inflation goes below 1% due to high unemployment and reduced cost of goods/services, then rates will go negative, which means govt can do more and more deficit spending like how Japan has been doing since 15-20 years. That will support UBI and increased employment in non white collar work. I am not sure about increased corp taxes though but as per MMT theory as long as inflations stays super low, like below 1%, govt can spend a lot. Also with negative interest rates, credit will be super cheap so lots of capital intensive companies may grow.
MMT says if you really want to kill inflation by reducing the monetary supply, you increase taxation and pay down Debt. Removing the excess capital from circulation. My guess is they want to let poverty eliminate geriatric liabilitys before they attempt to tame inflation
They would reign in inflation by raising taxes if they were following MMT.
This is the entire underlying concept of MMT that allows it to almost work. It's not Bessent, it's the whole design.
I wouldn’t say it was MMT as much as it’s been the deregulation and insane tax cuts for the richest of the rich since the Reagan administration. Deficit was less than a trillion dollars when he became president and he left with almost 3 trillion. It’s the biggest percentage growth for any president in US history. By the time his successor HW left, it was over 4 trillion dollars. Over a 400% increase in 12 years. Clinton achieves a budget surplus near the end of his term and then we had W run up similar deficits for the War on Terror. Than QE from the 08 crash and here we are. But the deficit increased by about 30% under the 4 years of the Biden administration. So I don’t think it’s fair to blame them or “MMT” for the problems we are currently facing
That’s what happens in capitalism when you fuck around and trying something so fucking stupid as MMT.
Most of the inflation we're suffering now happened 2021-2024. MMT is just a game of kicking the can down the road to infinity
they're gonna write books about covid on whether it was right or not for governments around the world to be deeply interventionist. I sense it is more pragmatism at play than actual academic stance. A free market economist would scoff at the idea of MMT and government intervention and would call it allowing bad businesses to survive and attack on creative destruction.
Hell yeah, MMT ZIRP here we go!
More MMT nonsense. OP doesn't realize that the largest holder of USTs is now the Federal Reserve. The largest holder of Japanese government bonds is the Bank of Japan with more than 50%. >The US **only** needs to roll over $7 Trillion in short term debt Bolded for emphasis. Also, that's just for this year. >nearly 1/3rd worth of all US short-term treasuries and bills needing to roll over into long term positions. Bessent was hyper critical of Yellen's game plan of selling almost exclusively T bills until he became treasury secretary. Since then he's done exactly the same. The treasury is never going back to issuing large amounts of debt at the back end of the curve because there are not nearly enough buyers. If they did yields would blow out. Japan is facing the very same situation right now. >So who will buy 1% Treasuries? That guy. Increasingly "that guy" are central banks. Again more than 50% of all Japanese government debt is owned by the Bank of Japan. >Who else will buy 1% treasuries? The foreigner who earned money exporting plastic-dog-poop keychains to the US and needs to take that dollar and put it anywhere except in currency because of currency risk. The largest of those countries is China. China has been a net seller of USTs for more than a decade. Today they hold 25% fewer USTs than they did in 2013 at the same time US debt has exploded. Foreigners have alternatives to holding dollars or dollar equivalents and have been doing just that.
That was a time when the world was in ruins. I can even understand if a massive banks take it but overall for retail, if it comes even close to inflation, then take a loan as much as you can and plough in stocks. I also think proponents of MMT are a bunch of lunatics
Debt by itself doesn’t tell you everything and experts don’t all agree on what is good and bad as it relates to debt. If you follow MMT then debt only matters when it drives inflation, otherwise it’s considered good. Traditional economists say debt is only helpful when the economy is struggling. We have a fiat currency so debt really only matters insofar as it increases inflation. If you subscribe to Milton Friedman then all debt is bad. In reality it’s likely a mix.
the thing that they were telling us was communism. They are going to implement MMT, government and the central bank will become one
Hi, you might not've seen my book recommendation because I think it was in a fork of this thread after you. But if you will, reach **Chapter 7** of this one, Assignment Anxiety. Just 4 pages: [Options for the Beginner and Beyond](https://www.r-5.org/files/books/trading/schoolbooks/W_Edward_Olmstead-Options_for_the_Beginner_and_Beyond-EN.pdf) by Professor Olmstead of Northwestern University. It's a pdf, so click and read. What he'll tell you is that as long as there is any time/extrinsic value in the option (look at it in the option chain to see), you won't get assigned early. 5 cents is pretty safe, 10 cents is very safe. There's a special case where if a dividend is coming up, it might be attractive for the contract holder to exercise; that's called "dividend capture." So keep a 10c buffer PLUS the projected div amount to stay safe. The reason for all that is: when you *exercise*, **you forfeit the extrinsic/time value**. It just goes away. You buy the stock at the strike, but that extra value in the option disappears. So a Call holder would almost never want to exercise. Instead, they'd SELL the Call and use the money toward buying shares. An example: you OWN the Nvidia 125C for this Thursday's expiration, 03July. That thing is absolutely buried $33 ITM at 95-delta; surely there's no extrinsic/time/hope value still in it, is there? Would you want to *exercise* that right now? Why or why not? Answer here: [ NVDA Deep ITM Call](https://imgur.com/a/AF5MMT4) There's 2 parts to that, so scroll down. If you're not super-confident in your basic options knowledge, that book has you covered. **Chapters 1 through 6** get you to LEAPS, which you're already doing. Just 52 pages. Then **add Chapter 14**, Covered Calls. That's just 5 more pages. Put them together and you have the Poor Man's Covered Call. "Poor Man's" because you don't have to have enough money to buy 100-lots of stocks, you can control 100 shares for a fraction of the cost. Technically it's a Diagonal Call Spread, and the short Calls aren't called CCs in that context, but they act the same. I think it's helpful to think of the LEAPS Calls as *stock substitutes* that we hold for a while (like a B&H investor), and like that investor, we should be selling CC's against them. If you will, Google this phrase: "InTheMoneyAdam PMCC" The first hit should be his PMCC tutorial. Watch it. Read the book chapters I called out. Watch it again. Repeat until you have just those two concepts down cold. Because honestly, I think the PMCC is all any of us really needs. (Anyone serious about building wealth, anyway. Or living off that wealth in retirement.) Cheers!
Next he's gonna say that the Fed should be abolished completely. p2025 discusses this in detail; it basically wants MMT, actually a very limited form of it. P2025 even suggests returning to the gold backed standard.
Ohhh. I was calling it math. There’s a subtle distinction between what I’m talking about and MMT. MMT is about printing money until inflation increases and trying to get something for free. My math up there is just using inflation as a variable in order to determine how much debt the government could sustain. Printing money, and spending borrowed money are separate activities.
There is actually a term for what you are describing. It is called Modern Monetary Theory (MMT), and it is complete fantasy BS.
I would argue we should never even try to pay off our debt. It would be economic suicide to even try. Our economy is designed around debt. I'm a proponent of MMT, and running a deficit can be a good thing if it accomplishes something. Giving tax breaks to billionaires/corporations for them just to do stock buybacks, pay out dividends, buy politicians and blow cocaine is not a good use of a deficit. Running a deficit to fund infrastructure upgrades, high speed bullet trains, funding preschool/daycare and upper ed programs, transforming our energy system etc., have a return on investment of greater than 1:1 (in some cases, much greater). Those are good uses of deficit spending, something we have historical proof produces in some cases, such as infrastructure a 3 to 1 ROI. With modest inflation, if we can get our idiot politicians to stop blowing up the treasury every time they want to pay back their donors with billions in tax cuts, we should be able to get the problem under control in about 100 years without having any issues, just by paying minimum payments. The fear mongering about the US debt is just that, fear mongering. You should not devote even 1% of your anxiety to it. Its a meaningless metric when your government controls its own currency.
False. Japan is a living proof of this. They’ve kicked this can down the road so many times, they’re approaching a point in 2034 where the interest on the debt alone is more than their entire GDP. MMT is a fucking fallacy, and idiotic. Government debt may not be like household debt, but there are hard limits.
Been looking into modern monetary theory. Even from an MMT point of view, high deficits still cannot be sustainable because it creates asset bubbles or allows faster and more frequent formations of asset bubbles. But to say the US goes bankrupt is dumb unless the libs for some reason are blocking debt ceiling, which should be removed (surprisingly, Trump has something I agree with). It means even if the market and housing are currently bubbles, they don't have to pop even if the economy gets worse. But if the economy seriously worsen, the pop will be the mother of all pops.
MMT doesn't work in practice because whoever actually implements it gets their ass voted out of office in an instant as people loath inflation
No it doesnt, it is not a serious economic model. No government will ever have the discipline to not just continually print money. Which will cause corruption with governments just printing money into oligarchs pockets. No will trust putting their money into an MMT economy.
Put some in BTC, 10-20%, for long term cause new Fed Chair will be under pressure to do a bunch of accounting gimmicks amounting to MMT to appease Trump. This will weaken dollar, spur alternatives like BTC.
Or none of that happens according to MMT because the US can do whatever it wants
In MMT, debt is dollar creation, and collecting taxes is dollar destruction. It’s fiat people. Debt is nothing but money supply.
I wouldn’t call tax cuts unnecessary. You are right that republicans are guilty of the same thing but we will just go in the same circle unless both parties take some accountability. To be fair, i am also in a position at this point where i am second guessing my opinion of the validity of MMT because I would have guessed the economy was going to crash like 20 trillion dollars of debt ago.
So this may offend a lot of people, but having worked in IT for several big companies (IBM), including one of the largest wealth management companies in the world, most of these white collar jobs are basically 100% replaceable and have been for years (prior to AI) just with advancements in IT technologies. I had like 8 managers at once before and I supported practically all of them in one of the roles I was in. They literally were all expendable and spent their entire time making up reasons for the company to keep them employed. This is likely very common in many companies at this point and since we have had a very prolonged period of increased market liquidity and economic growth, it hasn’t been a problem. Many companies are bloated with useless middle management roles (endless MBA’s everywhere). In MMT economics this is called guaranteed jobs. So when the time comes the central banks decide to put us into a recession, it won’t take much with AI. The real jobs are hands on. Most people employed in the US are basically made up roles from prior technological periods. Anything with an analyst name behind it will be cut if it makes sense from an ethical perspective (meaning other companies are cutting similar roles). The computers can do a lot of the math now as long as the user is skilled enough to input the right information, though granted, there will be at least enough people employed to feed the information to the computers.
MMT is not a conceptual set of policy prescriptions for you to agree or disagree with. It is a description of how the sovereign fiat monetary system works at its bedrock. Saying you’re not fond of MMT is like saying you’re not a fan of quantum mechanics. Too bad, because the data suggests that, yes, this is how it works.
I think that fixing these things through exotic means like QE fixes it short term, but just kinda kicks the problem a little further out. It seems to be a precarious situation. I am not fond of MMT as a concept, as I’m sure you can tell.
They would buy from themselves. MMT ♾️ money glitch.
MMT assumes you can print your own money, so this is not news.
It's been artificially held up for a quarter century now. ZIRP, QE, MMT. All became fashionable around that time.
She’s just another Stephanie Kelton MMT fiat slave.
why would a time when MMT was just a theory Bernanke was still testing matter at all today? JPow flooded the system with 4x more money in a single day than Bernanke did in 3 years. The printing press is limitless now
MMT suggests that the problem wasn't so much the money injected into the market as the fact that we failed to scoop it back off the top. But there's zero chance that either major party is going to raise taxes on the wealthy so...
Honestly I don’t think fiat is necessarily the bad guy I think it’s more just a tool. The real problem I think is more human nature which sadly doesn’t change much very fast. There’s always an incentive to prioritize short term over long term and to kick the can down the road to the next guy. There’s always a tendency to think we’ve rediscovered debt as this new tool and governments can spend and operate on a different set of rules. Truth of the matter is, regardless of who you are, building anything on debt is just borrowing from the future and eventually the future comes around with its hand out. The process takes just long enough for the generations thatstart the process die and the ones who have rebuilt from the fallout of the last one think they will do it differently this time. MMT isn’t all that modern and it’s been tried and rebranded through out every empire because there’s always a need for the governments to keep spending and growing until they implode on themselves. The world reserve currency status bought us a lot of time and will make this process hopefully not as ugly as other currency resets but it’s still going to be far from pretty
MMT basically says that the tariffs tax will far out weigh the cost of goods sold. GDP will be flat or even negative and we could see a 3.4% inflation print. It's terrible policy, but not gonna outright cause massive inflation. It will cause a recession as consumers simply dont spend at higher prices, and pull back on luxuries.
I swear to god, MMT maxis cause me a headaches. Read the bitcoin white paper please. Or read something. Like Broken Money.
"Why are you booing him?! He's right!" Despite all of the ineptitude of the Trump admin, let's not forget who bailed out the corrupt banks without any kind of serious restructuring/decentralization plan. Democrats are just as much in bed with corporations as the Republicans, if not more so. Democrats passed stimulus after stimulus, subscribing to dumbass MMT economics, and now it's blowing up in everyone's face. "Trillions of never-ending stimulus is fine as long as there's economic growth!" \*facepalm\*
There’s a limit to how much debt we can take even then…unless you believe in MMT
Have you noticed that MMT isn’t working?
Maybe it's because so many people realize that MMT was a complete disaster and are protecting themselves in the aftermath of that fiasco.
It's likely a combination of anti-MMT ideology coupled with the reality that US domestic manufacturing has mostly been transferred overseas. At the same time, the rise of free trade is to them a clearly causal link, and by putting in strong and across the board tariffs they can stem the tide and even reverse it. To an extent I think tariffs are useful and should be employed in targeted ways, and any trade policy should take into account long term domestic impacts. I think one area that will help the US long term is the demographic hurdles facing China in particular. A plan looking to the 10-15 year out mark is what's needed, but good luck getting something like that out of our current leadership. They can't seem to plan beyond next week with trade policy. Mostly because Trump likes to have competing internal factions, and his opinion can shift as the fundamentals change, or are perceived by him to change. Trump is a unique politician. He's got some clear ideology, but for the most part his policies are more fluid than most other politicians, especially in short term. It's hard to plan long term with him, because he's liable to shift focus or shift stance on something at the drop of what, not because he's spineless but because he doesn't feel tethered to past decisions.
Yes and no. Inflation is a double edged sword. As peer MMT, debts and deficits are meaningless for issuers of the currency - since they can’t really go bankrupt in the traditional sense. The limit to things like total debt and money supply always boils down to inflation, which is the true limiting factor in the economy. However, productive capacity (employment, labor force participation, productivity) is an equally important check on the whole system. TL/DR - inflation isn’t something governments inherently seek (it has pretty huge political costs). Instead, it is what acts as a limiter beyond which the governments hand is tied (unless it wants to create a crisis of confidence by continuing beyond)
I haven't finished the book yet, but I've been very interested to talk with an expert on the subject of MMT. I was going to post something in r/finance about it eventually. On the surface, it seems a little wonky, but getting into the details, I understand why the conclusions are made. I was able to talk with a guy in banking during a short train ride, and he grimaced at the idea of the government setting price limits on goods in order to control inflation that resulted from turning on the money printer. He indicated that price fixing leads to a lack of goods, since producers don't make as much due to less profits. This doesn't compute with me, because I would still keep my business running, despite reduced profits, as long as I was still profitable. Anyway, the main idea that the nation is not broke, nor can it ever be, as long as it maintains control over its central bank, was very interesting to me. I disagree with the idea of 100% employment, or 0 unemployment. If people have no incentive to keep their employer happy because they can go get a job elsewhere, it makes productivity and quality drop. I do like the idea of government backed healthcare services jobs. It would provide a benchmark for pay, rather than a mandated minimum wage.
“Paying off the debt means you have no money to work with,” it’s a classic MMT-style sentiment — but the evidence shows it’s not that simple. Between 1998 and 2001, the U.S. ran a budget surplus for four consecutive years — the first since 1969. The surplus didn’t cause a recession. The 2001 slowdown was caused by: The bursting of the dot-com bubble, The Fed raising interest rates in 1999–2000, And 9/11, which hit business confidence and tourism. A surplus can be fine in a booming economy, but dangerous in a weak one. Reducing debt is not inherently bad, but how and when you do it matters enormously. The macro context is everything: inflation, employment, interest rates, and global confidence shape whether reducing debt is helpful or harmful. Your broader point that fiscal tightening reduces money in circulation is a valid and important one. Government spending injects money into the economy through contracts, wages, welfare, etc. When the government cuts spending or runs a surplus (takes in more than it spends), it withdraws money from the system. That’s a form of fiscal tightening. But whether that’s good or bad depends entirely on the macro environment the country is operating in.
This is great explanation about the wider problem that nobody wants to talk about. If you zoom out the chart to the 1990's (the time everyone magically thinks was the best time to live) the rates were \~7%. If you ask people to discuss the national debt most people intuitively understand that we cant have $250T national debt. Only the MMT people really try to express that view. I think the other issue is most people do not understand that the Fed setting the overnight rate and the rate at which long dated bonds sell on the open market are two different things. They think "why cant we just lower interest rates?" not understanding that the world might only want treasuries at some higher rate.
Theoretically we will have a liquidity crisis, according to MMT as long as the debt is in our currency we could simply print money (or mint the legendary platinum coin) and it would not be too bad except of course we would probably no longer be the world reserve currency.
This admin is going to start believing in MMT really quickly at the rate this is going 
Wait until trump learns about negative rates. He’s gonna be stress testing MMT in ways not thought possible
If you were worried about MMT, don't worry. It's time for Anal Prolapse Monetary Theory.
I never said it was a shock? Comparing companies worth trillions to sellers on Temu and Amazon. you clearly understand how marketplaces make revenue..US based marketplaces sell Chinese products to Americans..but not to Chinese consumers. Chinese marketplaces sell Chinese products to US and Chinese consumers. Why wouldn’t those companies want to operate in the 2nd largest global economy? Because of hostile legislation/outright bans. https://en.m.wikipedia.org/wiki/List_of_websites_blocked_in_mainland_China https://www.defensenews.com/global/asia-pacific/2025/03/07/china-bans-more-us-defense-firms/ I’ll disregard the wild dismissal of 300% debt to GDP being a challenge in the name MMT and China devaluing their currency through issuing debt. Their state funded real estate crisis and overbuilding on down the line. This all loses the initial point of China being guilty of IP infringement and protectionism. Pretty wild this is a polarized take. Barack Obama didn’t go one debate without discussing the threat of China, and slapped tariffs on protected industries..but invested diplomatically in building a relationship and ensuring America had influence.
I would argue modern monetary policy/theory (MMT) is actually worse now than it was then. Add in the future china tawain semiconductor chip issue & yeah we’re due for a collapse as the TSMC CEO had said, any invasion of Taiwan & the market collapses in 10 seconds. Beware…
In all fairness, valuations were/are insane and printing a ton of money exacerbated it. It’s been a problem since Reagan, when Greenspan introduced MMT into the federal reserve. Trump did nothing but print and spend during his first term. This term it’s… throwing gas on a fire as far as I can tell. I’ve been short on SPY and a few bloated tech stocks since Feb. It’s been working great.
No we need MMT and sleepy joe back and we need to print money and create more fake jobs
My regarded spouse follows MMT guys and he says there is hope for green in September when (if) they raise the debt ceiling. Copium on a thread…
I wish our policy makers would understand MMT
Well Trump isn't an MMT fan, that's for sure 😄
Only if you subscribe to MMT. However treasury buyers want more yield for the risk, that risk is measured by many factors with a significant factor being good fiscal policy, which we do not have: increasing deficits leading to increasing debt all because we do not have a balanced budget. We do get a bit of a reprieve since we currently print the world’s reserve currency. That will end at some point as it always has throughout history and it will very much matter then. Future problem I know but my point is fiscal discipline always matters to someone even if not our drunken sailor spending “leaders.”
Some people don’t understand MMT and it shows
It's funny, /r/economics is perfectly fine with Keynesianism, and willing to talk about marxian, post-keynesian, even MMT perspectives. On the other hand, nothing but monetarism is allowed on /r/askeconomics
Yeah. But like Dems say. We MMT now
No we didn’t. MMT is pretty clear that when inflation heats up you tax the money back out of the economy. We forgot to try that half of the theory.
MMT does NOT suggest that inflation doesn’t exist.
Deficits do matter. Perpetually unfunded deficits will eventually be financed via inflation, which is like a tax on all property. MMT is a dangerous delusion, but for people who want to destroy the government it is a useful idea.
MMT is misunderstood by people who think it's "good" or "bad". It's not a policy, it's a description of a monetary system. One we happen to mostly be in. Pre-2020 economists were worried about letting politicians ^((and the public)) know that the deficit doesn't really matter as much as they liked to make it sound like it did. They figured that out recently.
So what are you saying? MMT good and in future no more crashes?
The utility of the proof-of-work blockchain is to build zero-sum ponzi-esque games that enable and subsidize financial crime. Since said criminals who have utility by using it can't even pay a fee to Bitcoin "investors", even if they wanted, there is no payout or dividend ever to be expected. So all "value" of Bitcoin is based on a diffuse cult-like hype instead of future expected payouts. This cult hype is able to make itself a self-fulfilling prophecy as long as numbers go up and new recruits can be found. But it will go the other way just as hard, when the sentiment shifts and reality kicks back in. Specifically Saylor is in this context like a cult leader, him selling Bitcoin is really like the pope converting to islam. I also admit that there is no reason that it needs to go to full zero. It can bungee up and down for quite a while. But MSTR is obviously a big problem for Bitcoin once the bungee goes down. Of course I haven't read every book about this. When I was going from door to door to preach as a fully convinced jehovah's witness, people usually also wanted to read our very genius books about why its so obvious that the world is going to end soon. It did give me the confidence that they are just stubborn, if they just would read it, they understand. But I am arguing about all of this for years and I probably know most of the arguments because I have heard them all five times each. I know about the fringe economic theories and I know that as many academic economists take them serious as physicians deny climate changes. I also want to add that I of course know that the current monetary system isn't perfect either. And I'm not a fan of MMT, I don't want governmental ponzis nor private crypto ponzis. If you really want to go through all of this, we can spend half a sunday in a video call, you can explain me the arguments in the book and I tell you my problems with them. But then lets put the video on YouTube.
"Some people think debts and deficits don't matter under MMT/Keynesian economics." That's an incorrect over-generalization. For one, MMT is not equivalent to Keynesian economics. Second, MMT doesn't say debts/deficits don't matter, it just says it's constrained by inflation, rather than some arbitrary debt limit. So MMT says deficits/debt don't matter \*as long as you're keeping inflation under control\*.
Depends on how you view government surplus and deficits. Some people think debts and deficits don't matter under MMT/Keynesian economics. Some people think they do under Austrian Economics. Some people just like to be mad at whoever's in office, party affiliation be damned. And some just don't actually have an opinion and make excuses when their party is in power.
The biggest downside to MMT and money supply theory at large is definitely on the way and hilariously enough Trump the Poster Boy for Filing For Bankruptcy is the sitting president… [if you catch my drift](https://m.economictimes.com/news/international/us/u-s-heading-for-default-in-2025-potentially-tanking-the-u-s-credit-rating-and-sending-shockwaves-through-global-markets/amp_articleshow/116747480.cms)
Economics can get very tied to politics. For example, try finding economists who believe in modern monetary theory, and are also Republican. With MMT the economic theory relies heavily on government spending, so it ends up being very partisan. On the other side you have the laissez-faire libertarians. I don't think that's really an issue with tariffs since the effects are agreed upon by basically everyone. If there was an economic theory at play that made sense, the Whitehouse would be broadcasting it non-stop. They aren't, so it seems most likely that it's all smoke and mirrors for some other motive (probably bludgeoning our trade partners into submission).