Modern Monetary Monopsony Theory (MMMT): Fragmentation Risk Management
"First, they fascinate the fools. Then, they muzzle the intelligent." (Bertrand Russell)
Summary:
· The IMF’s synchronized global monetary policy framework refining process is involuntarily, ‘fragmented’ by the inflationary catalytic converter.
· The diverging global monetary policy framework process will raise uncertainty, and risk premia, for currencies with the worst, combined, growth and inflation prospects.
· Safe haven status, “Friend-Shoring” vectors, and Hydrocarbon Swing Producer Status will insulate the US Dollar from political risk.
· Financial stability risk, derived from Fragmentation risk, is a disinflationary headwind that will prompt the ECB to adopt Modern Monetary Monopsony Theory (MMMT).
· The Republican Party is, allegedly, full of “Manchurian Candidates” and, thereby, “Ungoverned” and, hence, “Unelectable” until it has been reformed.
· The symbiotic Special Relationship is undergoing the syncretic bicameral Anglo-Saxon political cleansing, synchronous with the respective election cycles, on either side of the Atlantic.
· As anticipated, Nancy Pelosi is talking-up, her option position, while trash-talking, the “Manchurian Candidate”, in Munich.
· The “Manchurian Candidate” is a “Prisoner of No Conscience”.
Extracts
· The IMF believes that inflation is still too high to embrace MMMT.
(Source: the Author)
· Central Bank insolvency is aligning with fiscal insolvency at a rapid pace in the global economy.
· The alignment of central bank and fiscal insolvency promotes the exclusive interest in financial stability policy.
· The interest in financial stability policy will enable the application of Modern Monetary Monopsony Theory (MMMT).
· The ECB has signalled that its inflation mandate is making it insolvent.
· Villeroy has confirmed that inflation (and monetary policy) is everywhere and always will be a financial stability phenomenon.
· Christine Lagarde has embraced the ECB’s real financial stability mandate whilst remaining consistent with its sole inflation mandate.
(Source: the Author)
· The rekindling of the symbiotic Special Relationship is pending the tall New World Order of the permanent sacking/resignation of the Butler, the conviction of the Oxford Apostles, the UK re-joining the EU, the closure of the VIP Lane, and India leaving the BRICs.
· The rekindling of the symbiotic Special Relationship is also pending the syncretic bicameral Anglo-Saxon political cleansing simultaneously occurring on either side of the Atlantic.
(Source: the Author)