How Bitcoin protects against MMT (Modern Monetary Theory)

How Bitcoin protects against MMT (Modern Monetary Theory)

I was introduced to Modern Monetary Theory through Stephanie Kelton’s book – The Deficit Myth

The central tenant of MMT is that as a Monetary Sovereign currency issuer, the US government can print as much money as it wants so we shouldn’t worry about running up large national debts/deficits.

We’ve seen this play out recently with the multi-trillion dollar stimulus plans and the proposed multi-trillion dollar climate plans – there’s no plan for paying back any of that money or any conversations about lowering the national debt/deficit.

This likely means low interest rates (nearly zero in the US and negative interest rates in Europe) for quite a while.

This means that to effectively retire people cannot rely on traditional safe financial instruments like bonds / savings accounts. Instead needing to become proficient asset allocators (or needing hire someone to manage asset allocation for them). Adding this complexity to the system will be a problem for low information investors.

That’s where Bitcoin comes in. As a store of value Bitcoin can replace the traditional savings account that yielded between 5 and 20(!!) percent during most of the late 1900s (when interest rates were higher spending was more controlled).

TL;DR – MMT is a reality and has destroyed USD as store of value, Bitcoin fixes this

I made a video going into more detail here: [https://www.youtube.com/watch?v=ve6o9kcVnUE](https://www.youtube.com/watch?v=ve6o9kcVnUE)

Hope you enjoy 🙂



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