Depressionberg condemns MMT as RBA gobbles his bonds

WTF is this world that we are living in! Via the AFR:

Treasurer Josh Frydenberg has strongly resisted suggestions to embrace so-called modern monetary theory (MMT), whereby governments force central banks to print money to fund fiscal expenditure.

…”I never thought as a Liberal Treasurer that I would be here with the highest deficit and the debt,” Mr Frydenberg told the annual Citi Investment Conference on Wednesday.

“We don’t subscribe to MMT – that you can print money without consequence,” he said.

He said this would inevitably lead to inflation and blur the lines of independence of the Reserve Bank of Australia.

“If that was to happen it would certainly be inflationary and it would break the nexus between fiscal and monetary policy and the responsibilities that we have compared to the responsibilities that the Reserve Bank of Australia have.”

“I have also heard governor Phil Lowe talk about this in similar terms.”

After this week’s bizarroworld trickle-down budget that throws hundreds of billions of RBA-printed government debt at Depressionberg’s corporate mates, that Westpac claims consumers just love, the treasurer declares printing money pure evil.

At the rate that truth is being eviscerated, by week’s end Australia will be launching a new mission to Kepler 22, soon to be renamed Frydenbergia, on a locally designed rocket built using an innovative techique that glues blocks of cheese together with caramel sauce.

Somebody save me!

David Llewellyn-Smith

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