by Chris Powell
Dear Friend of GATA and Gold:
Bloomberg News tonight published a report, excerpted below, headlined “Ignored for Years, a Radical Economic Theory is Gaining Converts.” It’s called Modern Monetary Theory, but there’s nothing radical about it; to the contrary, it’s a tautology. That is, governments not only create money but can create as much as they want, restrained only by the prospect of currency debasement and the market and political reaction to it. Governments can’t “run out of money” any more than the college basketball tournament basketball games about to begin in the United States can run out of points.