Jerome Powell: Spending Is Unsustainable

Radicalized Democrats propose spending tens of $trillions that we do not have on transformative socialist schemes like “Medicare for All” (aka socialized medicine), free college for everybody, and forced conversion to laughably inefficient means of generating energy. When asked how they expect to pay for it in light of the $22+ trillion debt, they either shrug insouciantly or propose punishing the rich with draconian tax rates that would not raise enough anyway.

We are left to assume they plan to borrow on a still more massive scale. In case you were wondering whether this will work economically, the answer is, it won’t. Federal Reserve Chairman Jerome Powell confirms it:

“The idea that deficits don’t matter for countries that can borrow in their own currency I think is just wrong,” Powell said during congressional testimony in the Senate.

The notion behind what is called “Modern Monetary Theory,” or MMT, is that as long as the Fed can keep interest rates low without sparking inflation, the national debt and budget deficit won’t be an issue. MMT has been espoused by politicians including Rep. Alexandria Ocasio-Cortez, D-N.Y., and Democratic presidential candidate Sen. Bernie Sanders of Vermont.

We have seen what experts AOC and Bolshevik Bernie are when it comes to economics. It should come as no surprise that once again they are drastically wrong.

Earlier in the hearing, the central bank chief issued another warning about U.S. fiscal policy, which he again called “unsustainable” over the long run.

Going along as we have is unsustainable — during boom times. Imagine if Democrats take power, terrifying the economy back into recession, and then spending goes through the ceiling. Unsustainable would be putting it mildly. But Democrats only like sustainability as a phony pretext for crippling the energy sector. Otherwise, the concept is useless to them.

Some Democrats are too irresponsible to care what abruptly throwing federal spending into overdrive when we are this far in debt would do to the economy. A few, like Alexandria Ocasio-Cortez, are literally too stupid to understand. As for the rest, the Cloward-Piven plan comes to mind, as it did so often in the dark days of Obama.

In the age of Bernie Sanders and Elizabeth Warren, it would be difficult to dispute that the end game for Democrats is not just bigger government but ultimate government — i.e., USSR-style communism. Collapsing the economy would be the fastest way to get there.

On tips from 1-Bodhisattva.

The post Jerome Powell: Spending Is Unsustainable appeared first on Moonbattery.