Modern Monetary Theory

What is Modern Monetary Theory? In short, it is the printing of money and going into debt without the worry of ever paying the debt off. This idea originated back in the early twentieth century from the Fabian Society, which is a British socialist organization whose principles try to instill socialism via gradual means rather then a revolutionary overthrow.Our country, unfortunately, has been following this practice since President Nixon removed the U.S. dollar from the gold standard. Our current dollar transitioned to fiat money when that occurred, due to the fact that it is not backed by anything of intrinsic value. In other words, the dollar has value only because our government says it has value.Recently the Federal Reserve (which is a private corporation and not officially associated with our government) has started purchasing our country's debt at the rate of 1.2 trillion every two weeks during this downturn, simply because no other country will currently acquire our debt. They are starting to purchase quite a bit of federal, local and private debt. The problem with this practice is we, the taxpayers, are on the hook for all of this debt, not the Federal Reserve. Our government has been going down the road of the Weimar Republic since Nixon's actions, which has always eventually resulted in hyperinflation. This is what happened to Germany after World War I and Venezuela, for a more recent example.We are potentially entering some tough times ahead and I hope you are prepared. If you are able to do so, get out of debt, try to have some extra cash at home, plant a garden and store up food. Also, pray that God will forgive us and help us through these difficult times. Rebecca OriansTiffin