More on the Madness of Modern Monetary Theory

Modern Monetary Theory is akin to belief in Unicorns.  In reviewing once again today the amazing presentation by Kyle Bass at the Americatalyst forum in October, I found both an extracted short version that brings out most of Kyle's points regarding Japan, and also a rebuttal to this short version put up by a guy named Mike Norman, an avowed MMT aficionado.  I watched the Mike Norman video out of morbid curiosity, and was floored to hear him say the following;     

"Printing of Yen equates to a greater supply of goods and services"

And there you have it... MMT in a nutshell.  MMT gets it all backwards... as if it's money that wags the dog.  It is very much not so, especially now in a world of diminishing real resources (the things that go into "goods").  Mike might as well have said, "Printing Yen equates to printing a greater supply of oil and rare earth metals" because this is apparently what he believes.  

Here is the full Kyle Bass presentation;  

Here is the short version with Japan focus... although I would argue this extract misses the very most important point about Japan's sitaution, which can be found starting at about 15:30 in the long presentation.. regarding the non-linear (read exponential) divergence between tax rolls and debt servicing costs once interest rates start moving up;            

And finally... Mike Norman, who would have you believe that fiat currencies are the greatest thing ever, denying the long string of worthless currencies that litter history;