​​US and Global Economy and Financial System:


 The Problem:

1) Modern Monetary Theory (MMT):

The Biden Administration is embracing the Modern Monetary Theory (MMT) which is unrestrained money printing/creation putting our nation deeper in  debt.  This is discretionary spending (in excess of the revenue taken in through our taxes).  Main Street Americans are the ones who will end up paying for this debt through our future taxes.

MMT is not free market capitalism based on fair market price discovery but a system in which the central planners try to manipulate and control the economy through interest rate manipulation and forward guidance. This results in a manipulated economy similar to what the Soviet Union tried to do resulting in their economic collapse.  With MMT our country is moving away from Free Market  Capitalism into Marxist Socialism which ultimately progresses into Communism and then an Autocratic Government.

2)The Federal Reserve Misinformation:

The Federal Reserve is not being truthful with the nation when the Chairman goes on Fronttline  and tells us us the Federal Reserve can print cash and flood the main street economy with dollars.  The truth is, the Federal Government (Congress) requests money for deficit spending.  To provide the money, the US Treasury sells Treasury Bonds at open market auctions. Large World Banks, including Wall Street Banks, attend the auction and buy the Treasury Bonds. Then through Open Market Operations the banks sell the Treasury Bonds to the Federal Reserve at a profit. The Federal Reserve buys these Treasury Bonds using an account that has a zero balance. The banks take the Federal Reserve check/IOU and generate/print US Dollars.

 3)Federal Reserve Ineptitude: 

Since the Great Financial Crisis (GFC) of 2007 - 2008, the Federal Reserve QE and interest rate suppression have been ineffective in  bringing economic growth back into Main Street America and has only exacerbated the growing chasm between the wealthy elite and Main Street Americans.   Looking at the GDP trend line from the 1990s to 2007 one can see that if that trajectory had been maintained the nations GDP would be far in excess of the GDP trend line from 2008 to present. A graph of these trend lines would show the lines diverging to a greater and greater degree.   We will never have sufficient GDP growth rate to get us back on the trend line prior to 2008 as long as QE and suppressed interest rates are allowed to continue.  They only contribute to anemic GDP growth rate now and into the future and stifle free market capitalism with fair price discovery.

4) The US Stock Market:

With QE and Interest Rate suppression from The Federal Reserve, the US Stock Market has become totally unhinged from reality, the rest of the Main Street economy, and the financial system and is on an exponential upward trajectory.  This will ultimately end in a crash, decimating retirement accounts, pension funds, and stockholder wealth.

5) International Shadow Economy - Eurodollar:

A larger issue, is the global financial system.  It has become a complex off-shore shadow economy which includes global currencies as well as the Global Reserve Currency,  the US Dollar.  The off shore shadow economy is estimated to be in the trillions of dollars, and is increasingly showing  cracks in the system due to its growing complexity of derivatives upon derivatives and subsequent stress points.  The International Repo Market is part of this system and includes global investors primarily  in search of the Global Reserve US Dollars and high quality collateral such as Treasury Bills/Bonds. 

Obtaining US Dollars in the Repo Market is achieved when primary dealer banks and other entities lend dollars  for collateral, or collateral for dollars. This is the primary method in which other countries can obtain the Global Reserve US dollars they require for transactions. If there is a shortage of dollars, acceptable collateral, or the primary dealers do not/are not able to participate, the Repo Market can lock  up resulting in a liquidity crisis and crashing the entire system and the global economy.  The 2008 Great Financial Crisis and the liquidity scare in the overnight Repo Market in September 2019 are examples of this.

Why would there be a lack of reserve currency or collateral?  Does the future of the economy, monetary system, and financial system seem so unstable to those in possession of US dollars and collateral that they are risk adverse, preferring to retain their collateral and US Dollars?


US Economy and Global Financial System

​​The Answer:


QE, suppressed interest rates, fiat currency, and MMT have decimated our economy and financial system.

We are in a global depression and the continual, world-wide economic lock down for COVID and its variants are contributing to this global depression's downward spiral.  It is no wonder there is apprehension in our economic and financial future and lenders consider lending high risk.  The incessant dialogue goes something like this... vaccines work, no wait, they don't work. The mask won't protect you, oh wait...they will, no it takes one layer, no two layers, oh wait, it is three or four layers, etc..

So goes the babbling from our governments and their revered advisors...

Bottom line: the government is either confused or incompetent.  The pandemic advisors are either confused, completely incompetent, or out to make a profit on their patents on the  disease and its vaccines and want to keep the panic going as long as possible to increase their profits. 

The American people are  fed-up with the mixed, and suspect signals, from the so called "Leadership".

The economic lock-downs have to stop.

They are ineffective in the spread of contagion and are killing the economy.  Other methods can be used to prevent the spread of the pandemic that do not require shutting down the economy.

The US must Enable and Empower  Free Market Capitalism.

Governments need to get out of the way and stop trying to manipulate and dictate or lives.  The federal and state governments need to realize the  US does not have a monarchy so they need to quit assuming they rule us. 

The people of the United States rule the government, not vice versa.