Egon von Greyerz: SILVER SHORTAGES ARE HERE And Gold Scarcity Is Coming!…(6…)
SilverDoctors.com
April 12, 2019
Egon says once the paper silver shorts run for cover and ask for delivery, THERE WILL BE NO METAL AVAILABLE. Here’s what it means for gold & silver investors…
by Egon von Greyerz of Gold Switzerland
MMT is the socialists’ dream. It officially stands for Modern Monetary Theory but a more appropriate name would be More Money Theory. Because MMT is just a fancy name to justify more money printing, more deficits and more debts. Socialists love MMT, because for a sovereign nation, it justifies constantly living above your means.
This is of course nothing new for the US which has practised MMT for soon 70 years. Not since the early 1960s has the US had a real budget surplus. Europe has had socialist governments for decades, but for the US it is a relatively new phenomenon. Alexandria Ocasio-Cortez (AOC) has now picked up the baton from Krugman, arguing that socialism and deficit spending is the solution to the US problems and the world’s.
US UBER-SPENDING
Trump, who normally is as far from a socialist as you can get, is nevertheless applying MMT to the US economy by continuing to spend money that doesn’t exist. His tax cutting and uber-spending, combined with the imminent downturn of the US economy, will soon put the US in the same category as countries like Italy. That is what is called the basket case category where default will be unavoidable.
As opposed to Italy, the US can print its own money. And they continue to do at an ever increasing rate. Just look at the chart below which shows the only way the US government knows how to grow GDP. But we must remember that printing unlimited amounts of worthless money leads to a total debasement of the currency which is just another form of default.
From 1970 to 2008 it took $0.77 of debt to produce $1 of GDP. From 2008 to 2019 it has taken $4 of debt to produce $1 of GDP. In simple terms, the US is running on empty.
The Rest…HERE
