Warren Mosler, founder of Valance Co., Inc. and author of “The 7 Deadly Innocent Frauds of Economic Policy,” is widely viewed as the intellectual godfather of Modern Monetary Theory (MMT), a framework for understanding money and debt which underscores a government’s ability to print money to pay for goods and services without relying necessarily on borrowing or taxation.
Mosler joins Forward Guidance to apply these ideas to today’s financial issues. He argues why a failure to raise the U.S. debt ceiling would be truly catastrophic, and he makes the case that the Fed’s rate hikes are actually contributing to inflation, rather than fighting it, because the government is printing more money in order to pay its debt. Filmed on May 30, 2023.
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets
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Timestamps:
00:00 Risk Of Government Unwind Would Be Catastrophic
07:24 "Money Is Just A Series Of Dots Going On And Off In People's Bank Accounts"
14:52 The Federal Reserve Prints Money
19:07 The Government Spends First, Taxes and Borrows Second
31:23 Permissionless
32:01 Quantitative Easing Does Not Have An Actual Effect On The Economy
33:17 High Interest Rates Mean More Deficit Spending
48:29 Challenging The Narrative of Volcker As The Slayer Of Inflation Dragon
54:00 Challenging The Wage Price Spiral
01:01:13 Currency Itself Is A "Public Monopoly"
01:04:04 We Are NOT In A Recession, Says Mosler
01:11:21 Is The Solution To Inflation To Cut Government Spending?
01:16 Blockworks Research
01:17:28 The Debt Ceiling
01:24:08 The Dollar
