Modern Monetary Monopsony Theory (MMMT): Laissez Faire, Prepare To Fail
“Fail to prepare, prepare to fail.” (Roy Keane)
Summary:
· Gold (and Crypto) cannot wait for Modern Monetary Monopsony Theory (MMMT) to get the official inflation green light from the BIS and the IMF.
· The test of Crypto versus Gold, as the best MMMT alternative store of value, is the essential next step for the basis of new central monetary policy frameworks that involve CBDCs.
· For MMMT central bank monetary policy frameworks, involving CBDCs, to be successful, Gold must defeat Crypto, because the latter is not an official global reserve currency.
· The Fed’s new Modern Monetary Monopsony Theory (MMMT) policy framework intends to ease Macro-Prudentially, rather than quantitatively or qualitatively.
· The Fed’s new Modern Monetary Monopsony Theory (MMMT) policy framework transfers wealth, from the Fed balance sheet to bank shareholders, for creating private credit with less regulatory capital risk.
· The Fed is failing to cure any banking sector addiction to MMMT with new capital adequacy and commercial risk pricing rules and regulations.
· The Fed’s new Modern Monetary Monopsony Theory (MMMT) policy framework is a morally hazardous surrender to, and capture by, the banking sector rather than the executive branch of policymaking.
· The Key Signals analysis contradicts Chairman Powell’s rate optimism testimony.
· The Fed may be “not far” from easing, but it is closer to tightening before it eases.
· At this point, the Fed is unlikely to ease, before a new Presidential Cycle has begun unless it is rooting for the incumbent.
· At this point, the Fed is more likely to tighten, into a new Presidential Cycle, before being quickly forced into easing by the hard landing that it has created.
Extracts
· He/She/They Gold has the correct global macro view.
· He/She/They Gold envisions a debased currency polycule that is artificially inseminated by Modern Monetary Monopsony Theory (MMMT).
(Source: the Author)
· “He/She/They Gold” is exclusively a central bank gender, with an exclusive agenda, that Mr. (Bond) Market and Mrs. (Equity) Market do not fully understand, yet.
· The BIS proudly advocates for a strong US Dollar whilst coordinating G7 currency debasement in the pursuit of central bank solvency.
(Source: the Author)
· The IMF believes that inflation is still too high to embrace MMMT.
(Source: the Author)
· The ECB has an implicit financial stability policy mandate conditional upon compliance with its inflation target mandate.
· The official position of CBDC in ECB MMMT has, yet, to be revealed, but can be inferred from the official criminalized financial stability threat framed for Bitcoin.
· A Crypto crisis is an essential weapon in the EU’s Ukraine War.
(Source: the Author)
· The Fed intends to cure any banking sector addiction to MMMT with new capital adequacy and commercial risk pricing rules and regulations.
· The Fed’s emerging monetary policy framework is an Esther George master class.
· The Fed has slowly learned, as Esther George taught, that supply curve convexity and oligopoly-driven price inelasticity are a “constraining”, Stagflationary economic headwind.
· The Fed’s disingenuous “Disinflation without a rise in Unemployment” new mantra takes false credit for the accidental “soft landing” predicted by Esther George’s “constraints”.
(Source: the Author)