How MMT Will Save America & the World

Mon Feb 25, 2013 3:27 am » by **Malogg**

Published on Feb 11, 2013
Thom Hartmann interviews Dr. Michael Hudson, President-Institute for the Study of Long-Term Economic Trends (ISLET) / Author, "The Bubble and Beyond"
Website: http://michael-hudson.com/ about modern monetary theories.

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Mon Feb 25, 2013 7:23 am » by **Cia212**

He only half-asks the question at 1:55, but what he's trying to ask is, "Why don't deficits matter?" The answer - no theory can save the country if you have bad administrators... So he ignores the question and just launches into his "banks" discussion. The fact is that deficits eventually do matter.

They gloss over it, but inflation kills MMT despite what Bill Mitchell argues. They would say that inflation isn't demand side at all (which is where MMT is applied) - but that ignores the nature of monetary theory which has to concern itself with both sides of commerce.

It's like a doctor saying it's okay to have high blood pressure as long as cholesterol is normal. Economic systems, like the body, need a balance of all factors to be healthy, not just one.