The Monetary Abyss Stares Back and Asks Who’s Next? By Tom Luongo | WHAT REALLY HAPPENED

The Monetary Abyss Stares Back and Asks Who’s Next? By Tom Luongo

But the time lost by people in pursuit of uneconomic ends by mispricing risk and servicing debt they are legally obligated to service is real.

So, ultimately, the difference at this point between what we’re seeing from the central banks now and MMT is a matter of accounting and definitions. But it doesn’t solve the basic problem that prices for things want to adjust downward.

And I remind you that Russian President Vladimir Putin understood all of this when he said no to OPEC+ and lower oil production. This pricked the so-called “Everything Bubble” and now the world is realizing just how important it is for capital markets to reflect the actual goods and services produced by the global economy not a financialized multiple of that value thereof.

It’s important to make this distinction now because as a hard money advocate and Austro-libertarian thinker it is my duty to counter the rising cries for someone to save us from the evil monster of deflation.

Those most vulnerable to this deflation of asset prices are the very people who own most of those assets and use them as cudgels to beat down those who oppose them — think Iran, Venezuela and, most openly, Russia.

The good news is that they can’t stop the deflation. Quantitative easing is, in the real world, deflationary because it signals to markets that the central banks are so scared of the future that it cannot be trusted to market forces. This feeds the fear and causes people to hoard money they feel is undervalued, thereby exacerbating the cycle.

And today those monies are the U.S. dollar, gold and, to a lesser extent, Bitcoin.