The government is the source of unlimited wealth

Read:   The Radical Left-Wing Theory That the Government Has Unlimited Money

Now read: Martin Armstrong - Hyperinflation Unfolds Only When Public Confidence Collapses

Now, while we at it, read: Monetarily Sovereign

What is MMT?  MMT (modern monetary theory), or Monetary Sovereignty (from Rodger Mitchell) is the idea that the government can create wealth by spending money, specifically by deficit spending. 

What about inflation? Inflation can be reigned in if it gets out of control through increasing interest rates.  The Fed wants inflation to be about 2%, and it hasn't been 3% or higher since 2007.

How long can this state of affairs last?  Forever, apparently, unless public confidence in the system breaks down.

But what about interest on the debt?  It gets paid to rich people, and we can just jack up taxes on rich people to pay for the interest.

But what about rich foreigners who buy the debt, collect interest, and don't pay taxes?  Well, they are stupid because they will never get paid back in the same dollars, instead they will get paid back in depreciated dollars. The interest is just to compensate for the loss of purchasing power, and it may not even do that.

What is the purpose of taxes?  The purpose of taxes in this system is not to raise revenue, because the government doesn't not need any revenue at all, it can just digitally create money at the push of a button.  The purpose of taxes is: A) to keep inflation under control, and B) wealth redistribution.

Isn't this madness?  Absolutely.  But we have already past the point of no return, which was Rand Paul attempting to filibuster the spending bill on Feb. 8.

We are on a roller coaster ride and there is no way off.  You might as well enjoy the ride.  Unlike Martin Armstrong, I don't believe this will work in the long run.  It certainly will work in the short run (the next 10-15 years).

So let's try it.  But at some point, which I think will be in the mid-2030's, the whole inflation thing will turn into hyperinflation and the whole system will break down, like what is happening in Venezuela right now, but probably not as extreme.