Exposing MMT
Since 2019 US GDP has risen by 4% or $800 billion.
At the same time, US Debt has risen by 33% or $8 trillion.
If MMT worked as advertised GDP would have also grown by 33%. It didn't!
Why? bc Gov't debt is not productive. It is as plain as day.
Asset allocation is ultimately about balancing returns with risks. While it is relatively easy to reduce risk in a portfolio, it is harder to do so without diminishing its return potential. Diversification, that is, adding uncorrelated assets to the portfolio, is one of the main tools available to investors to lower such risk, but it often comes at the cost of...
The real economy (Inflation adjusted) has barely grown by $1 trillion in almost 4 years.
Let's take a moment and go back in time and read what the Congressional Budget Office was forecasting in 2019.
"At $16.8 trillion, debt held by the public at the end of 2019 was equal to 79 percent of gross domestic product (GDP),
far greater than the average debt for the...
One of the best ways to think about public debt is to think of oil extraction. How many barrels of oil are required to extract 1 barrel? Right now we are extracting only $0.64 cents of GDP for every new $ of added public debt. This is a horrific ROI. Can you imagine using 1 barrel of oil to extract 64% of a barrel of oil? To make matters worse it keeps falling and...
The GDP number of 2.7% growth is being propped up by net exports, while consumption is at a cycle low. This is horrible for earnings expectations and risk assets. Net exports were at a low in prior quarters, making the economy look worse off than it was. Now the economy is actually worse off than it is and the metric is instead making it look better. This is why...
U.S. Real GDP (Inflation-Adjusted) has only grown $296 Billion in 2 years.
After adding $8 trillion public liabilities
Helicopter money
$5 trillion in QE
ZIRP (Zero interest rate policy)
The "cares Act", "Stimulus" etc.. horrible ROI. Here is why
No Gov't can print VALUE (productivity) for a currency it prints. next time you hear a politician or FED official...
