“There was an open ‘debate’ about MMT or Modern Monetary Theory. Brilliant young man economist Sam Rines took the difficult position of being pro-MMT for the sake of debate. He thinks it would be a disaster but is truly afraid we will actually pursue such a policy. There was the usual pushback, which I’ve written about more than once, but I have to admit that I was struck by the private conversations after the debate. Many smart, well-informed thinkers were almost resigned to seeing MMT actually attempted in the next decade.
Mauldin take away: If we attempt MMT it will end the US dollar’s reserve currency status, produce out-of-control inflation that will essentially destroy the Boomer generation’s ability to retire with anything like most envision today. I can’t say it any stronger. If I really see MMT coming I will reposition my portfolio to heavily weight gold, real estate, and a few biotech companies. I simply can’t imagine a more dire economic scenario.
Honestly, though, I don’t think we will go there. Are there politicians that would like to do it? Absolutely, and they have less economic understanding than God gave a goose. Even economists with whom I strongly disagree on many topics think MMT is not something to be trifled with.” – John Mauldin [1]