Modern monetary theory

In 2020, the role of central banks around the world has grown significantly. The MMT ideology, which has become popular in the political discourse, “cancels” the problem of the state debt and advocates for an almost uncontrolled emission of fiat currency

Liberal groups in the United States are already urging Biden’s team not to seek support in Congress and begin reforming America by presidential decrees. After all, the President controls the Treasury, which can work in conjunction with the Fed.

They propose to create regional “banks for national development”, united in the “council for national development”. Their tasks will include the implementation of liberal reforms – such as the “Green New Deal” or the creation of a system of state medicine in the United States.

According to the constitution, any such innovations must be approved by Congress – after all, they will have to spend tens of trillions of dollars, which can only be controlled by legislators.

However, in the context of strengthening the position of Republicans in Congress after the elections, the chances of these reforms are low. Therefore, Biden immediately promised to start ruling the country with his decrees in order to implement at least a small part of the promised undertakings.

But now he is being urged to bypass Congress and simply get the Fed to print enough money for the intended transformation. There is a reserve for this: the balance of the Fed against the background of the crisis has already grown by 80%, from four to seven trillion dollars.

The progressive public is confident that nothing bad will happen if he prints another 10-20 trillion and hands them over to the US Treasury. Well, then this money will be given to “development banks” for a new American “reconstruction” in the territories entrusted to them.

Such projects are most likely anti-constitutional and violate the principles of federalism. The very fact of their discussion is significant: one should not expect any “return to normalcy” from Biden – there will only be a further weakening of political institutions in the United States along with the radicalization of society.

Malek Dudakov

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