Alexandria Ocasio-Cortez has to be the most visible aggressive proponent of this Modern Monetary Theory bullbuzz going around lately, and I gotta admit it does sound tempting at first blush.
I mean the filthy rich have been doing it for themselves like forever, right, so why not for the rest of us, too ?
Her sales pitch , boiled down to its basic goo goes like this : It doesn’t matter how much “borrowed into existence” debt is created because we can just fire up the good ol’ counterfeit machine and print up as many Yankee Dollahs as we need to pay it all off . That’s what we’ve been doing for decades, and despite a few glitches (like the crash of ’08 !) it’s been working great for us back here in the USSA.
So far (as in, “up til now” ) however, it looks like all of this free money has gone only to the rich. It goes to them as “loans” (low-to-no interest , by the way) who launder it by “investing” in worthless imaginary shit like Apple or Microsoft stock , or gazillion dollar palaces in the Hamptons that can ALWAYS and FOREVER be bought today for 1 dollah and sold tomorrow for 2 (netting a nice profit, over and over again). Any shortfall in that scam is made up for by flogging the serfs to work harder for less money, or ( better yet !) . . . shipping their factories and jobs off to China where slaves are happy to produce the same items for fraction of the cost of making it here at home. Voila ! Lower prices and higher profits in one swoop.
The fantasy she is selling is to convince the peasants that they, too, can get in on the free money long-con . Of course anyone with a brain cell intuitively knows there’s something wrong with that picture, BUT they sure would like some of that free money for themselves, too . Like , why should the rich get it all ? AND shit, we’ve gotten away with it this far, haven’t we? Why not for a bit longer ? And if the whole shebang IS all going to come crashing down anyway then why shouldn’t WE (poor folk) get in on some free buckets of honey before they’re all gone ?
AOC presents a pretty compelling argument, insofar as the poor folk are concerned, but there are a few itsy bitsy little flaws (like mass starvation, world war and certain death) but , hey, nothing’s perfect right ? Here is what’s really wrong with her sales pitch :
1. First and foremost : the rich guys who write the rules and make the laws will never ever let any more poor folk in on the racket to any greater degree than the poor folk are already in on the skim. In other words, she can not get such legislation passed, and so the temptation she dangles is just another politician-style lie to get herself elected.
2. Unbeknownst to the poor starving masses in America (who sincerely do picture themselves as exploited victims) America’s middle and lower and lowest classes are themselves beneficiaries of the scam already . They’re just not “math aware” enough to see it clearly. You see it is not America’s poor who are being ripped off. It is the people outside our borders who are being bled dry. They are forced to borrow worthless dollars (fake money) and pay it back with REAL money , REAL work, and REAL products.
Everybody in America ( including the poor) have been enjoying the benefits of this free ride ever since the US Dollar became the World Reserve Currency in 1944 (treaty of Bretton Woods, ratified by the 44 largest countries, including the USSR). If you wonder what the “financial system” is, well that system (Bretton Woods) is the system. The ratified agreement made it a legally enforceable fact that international debt would be denominated in U.S. Dollars. It made the dollar King.
Don’t break your brain on this point. It’s way more simple than it’s made to appear. Basically, if I loan you dollars then you can’t pay me back in wampum. You must get your hands on dollars to pay me back if I say so. And the courts of the world will back me up on it. No exceptions.
3. No one knows the upper limit of just how far (or for how much longer) this ridiculous ripoff can continue before the true victims (i.e. the rest of the world) reach the end of their rope and declare “No mas ! ” But there is one thing they all know and agree upon : The world is teetering on the brink of that “system” breaking under the load of too much real money being demanded from real producers (i.e. the rest of the world) to pay back too much fake money to counterfeiters (i.e. the USA).
In other words, no way will the powers that be hasten ‘The End Of The World As They Know’ It by giving freebies to ungrateful poor people. Those same poor people, however, might soon hit the end of their rope, and put an end to the world of the rich anyway. In other words, revolt.
4. THEREFORE AND ON THE OTHER HAND : Rich folks might be persuaded to pay poor folks not to revolt, and that is the card that AOC is playing . China would like to see this because it will speed up doomsday for the USA’s hegemonic empire. That’s why China has been so enthusiastically bank rolling every Democrat, publisher and commie agitator they can get their hands on by any and ever means possible, fair or foul. Buy, bribe, blackmail, trick, persuade, fake, or do it themselves and pretend to be someone else. Makes no difference to them, just as long as it works.
The Chinese Communist Party knows beyond the slightest shadow of any doubt that they cannot rule the world until the US Dollar Reserve Currency does NOT rule the world.
5. So, probably yeah. We could all get free money for a while (just not very much and not for very long ) . . . BUT it will trigger the true end of US hegemony and hand the world over to the CCP on a china platter. Pun intended.
Conclusion : If you do get the free money, use it to learn Mandarin.