“But the philosophy that Kelton and others are pushing — dubbed ‘modern monetary theory [MMT]’ — views it differently. Governments, it says, create money, so they don’t even need to borrow any — they can spend as much as they like. The only limitation should be the threat of inflation, not insufficient revenue.”
Politico: Ocasio-Cortez boosts progressive theory that deficits aren’t so scary
Published
Tidewater News and Opinion Forum 
There’s nothing “modern” about MMT. It is how monetary systems worked for centuries up until the innovation of central banking.
I’m sad to see progressives championing MMT, because they will see it as a way to pay for everything they can think of that they want, but the core concept looks valid to me. Critics of the Federal Reserve have been making the MMT argument for years: Why go into debt to a private entity (the Fed) when we can create money without the debt?
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It worked so well for the Weimar Republic that it took a Hitler to restore order.
https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic
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To me, the lesson of the Weimar inflation is that it matters immensely how newly-created money is used. Bankers, presumably, have expertise in such matters but I’m not convinced they are better than politicians.
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Weimar Germany owed huge amounts in non-sovereign currencies. It has almost nothing to teach us. With that said, only one of our major parties has displayed stunning fiscal irresponsibility. And, it ain’t the Democrats.
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Heck, the Republicans beat AOC to the punch with regards to the insignificance of a deficit and ballooning debt.
They managed to rationalize the benefits of borrowing money to cut taxes.
And as predicted, the deficit is approaching $1 Trillion this fiscal year after Obama got it down to well under half that after inheriting a multiple of that and a massive borrowing for the biggest recession since 1929.
Ah yes, the GOP, the party of borrow and spend. Like deadbeats who think the credit card is found money.
IMHO naturally.
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