Democrats Plan Hyperinflation That Will Destroy The U.S. Economy
by: Daniel Jennings
OffTheGridNews.com
2/1/2019
Taking a page out of their radical, progressivist playbook, the Democrats plan hyperinflation to finance massive spending increases and new entitlements. In fact, many Democrats are embracing the ideas of economist Stephanie Kelton or “Modern Monetary Theory.”
However, even liberal Nobel-Prize-winning economist Paul Krugman calls Kelton’s ideas a “blueprint for hyperinflation.” In particular, Kelton believes that the government will never go bankrupt because the treasury can print all the money it wants.
So, the government can supposedly spend all the money politicians want. Consequently, Kelton’s theory is now “the biggest idea in Washington,” The Huffington Post claims.
Just How Will The Democrats Plan Hyperinflation?
The Democrats plan hyperinflation by increasing the money supply, The Week’s James Pethokoukis claims. As a result, the Democrats plan to make Kelton’s ideas function as national policy.
Particularly, Democrats will issue an unlimited amount of debt to pay for programs such as basic income, free college tuition, Medicare For All, and a jobs guarantee. Astonishingly, Kelton believes the government can pay for all that without raising taxes through the printing of more and more money.
Conversely, Krugman believes that this practice will cause an inflation rate of 12% a month or 144% a year. This will destroy your money because $1 will be worth 1.44¢ after merely a year of such hyperinflation.
As a consequence, a $62,000 annual salary will be worth $7,740 per year under Modern Monetary Policy. Notwithstanding, the U.S. Department of Health and Human Services sets the poverty rate for a family of four at $25,750 a year. Because of this, Modern Monetary Policy will impoverish most Americans.
Why Wall Street And The Democrats Plan Hyperinflation
Krugman also thinks that the monthly inflation rate from unlimited government spending could exceed 400%. Specifically, an item on the McDonald’s Dollar Menu could cost $40,000 after only 10 months of Modern Monetary Theory.
Under these conditions, most investments including savings, bonds, and real estate will lose most of their value. Yet, some investments like stocks, gold, silver, and cryptocurrencies could grow in value under hyperinflation.
For this reason, many investment bankers, speculators, hedge fund managers, and stock investors like inflation. Therefore, many people on Wall Street may welcome Kelton and her economic “ideas.”
Democrats’ Blueprint For Hyperinflation Could Lead To Hunger, Riots, And Civil War
Notably, Modern Monetary Theory is currently being employed in Venezuela where it is a spectacular failure.
For instance, Venezuela is experiencing widespread hunger because millions of people cannot afford food. Moreover, one-third of Venezuelans eat only one meal a day because that is all they can afford, The Miami Herald reports.
Hyperinflation leads to food shortages because prices increase faster than families’ incomes. Consequently, people cannot afford to buy food. Beyond hunger, hyperinflation leads to civil unrest and crime.
For example, a National Guard unit from a poor neighborhood in Venezuela’s capital of Caracas mutinied recently, The Herald states. Additionally, riots killed 16 people and injured 228 protesters in Venezuela last week, Newsweek claims.
Hyperinflation could lead to civil war in Venezuela because two men claim to be president. Socialist incumbent Nicolás Maduro claims to have won the last presidential election. Nonetheless, rival socialist Juan Guaidó also claims to be president.
Democrats’ Blueprint For Hyperinflation Could Turn America Into Venezuela
Hyperinflation is destroying Venezuela because of two decades of uncontrolled spending by Maduro and his late predecessor, Hugo Chavez. Presently, the International Monetary Fund (IMF) estimates Venezuela’s inflation rate at one million percent.
In essence, the Democrats’ blueprint for hyperinflation could change America into Venezuela. Remarkably, Venezuela was the richest country in South America until they elected Chavez in 1998.
Nevertheless, the Venezuelan economy shrank by 30% between 2013 and 2017 due to hyperinflation, the IMF calculates. Furthermore, Venezuela’s gross domestic product (GDP) shrank by 18% in 2018.
Now a cup of coffee in Venezuela costs two million bolivars, Forbes contributor Garth Friessen estimates. Meanwhile, Statista asserts that the average cup of coffee costs $3.12 in New York, which is one of America’s most expensive cities.
To clarify, the Bolivar is Venezuela’s national currency named for Simón Bolívar. Bolívar was the general who led Venezuela’s revolution against Spanish imperialism in the 19th Century.
Democrats Plan Hyperinflation Despite The Venezuelan Catastrophe
The Democrats are still planning hyperinflation through Modern Monetary Policy despite the Venezuelan disaster.
As an illustration, Democratic presidential candidate and U.S. Senator Kamala Harris plans to pay every American family a $500 per month basic income as a “tax refund.” Harris’s rival, U.S. Senator Kirsten Gillibrand (D-New York), wants a jobs guarantee and a “Green New Deal.”
A jobs guarantee offers all unemployed people a $15 an hour government job with health insurance. In addition, the Green New Deal is yet another massive spending program that serves to switch America from fossil fuels to green energy. And then there’s Democratic frontrunner Bernie Sanders, of course. He wants the government to pay all of the costs of healthcare and college for every American.
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