A couple of high points / thoughts on an import tweet from #[0]​.

https://twitter.com/kanemcgukin/status/1635986836496498692?s=46&t=BCZ86Q6VE35kiDHSK1Vf6w

1. The shortcomings of #Keynesian / #MMT show up in the never ending need for more credit facilities in order to expand supply.

These accounting gimmicks create the appearance “wealth” (paper wealth) at the expense of the population’s purchasing power.

2. It’s no different than an individual w/ $100k in credit card debt. The interest expense feeds on itself.

The possibility of pay off becomes zero.

So, the individual rolls the debt to a 12/mo 0% interest card, doesn’t pay it off, & continues spending on the old card. Repeat.

3. If banks have $600b+ of impaired bonds, that can now be borrowed against at 100% of par.

Did we not just create an additional $600b out of thin air? Or 90% of - $540b?

4. A wise man once said, “Therefore, get rid of all moral filth and the evil that is so prevalent and humbly accept the word planted in you, which can save you.” JAS 1:21