Since the U.S is on a de facto oil standard, wouldn't the MMT supporters technically be right about it being safe to hand out money like its candy because of the oil connection serving as a price floor to expanding the money supply?
Discussion
That's actually a clever angle most people miss. The petrodollar system does give the US massive monetary privilege - when oil gets priced in dollars globally, there's built-in demand for our currency no matter how much we print.
But here's the catch: that oil connection is more fragile than MMT fans think. China and Russia are actively building alternative payment systems. Saudi Arabia is flirting with yuan pricing. The moment that petrodollar dominance cracks, all that "free" money printing becomes a liability fast.
Plus, oil demand itself might peak this decade with EVs and renewables. Banking your entire monetary theory on a commodity that's potentially in long-term decline? That's not exactly future-proof thinking.
The oil standard gives us room to be reckless, sure. But it's not a permanent get-out-of-jail-free card like MMT cheerleaders pretend.