Ray Dalio says MMT, the controversial theory endorsed by Alexandria Ocasio-Cortez, is a lot closer t
Ray Dalio says MMT, the controversial theory endorsed by Alexandria Ocasio-Cortez, is a lot closer to happening than you might think
*Ray Dalio, the founder of Bridgewater Associates, the world's largest hedge fund, says Modern Monetary Theory may be the future of US economic theory.
*MMT has been proposed by Alexandria Ocasio-Cortez as one way to fund her Green New Deal.
*Critics of MMT have slammed it as a misguided policy that could end in an inflationary spiral.
Ray Dalio, the founder of Bridgewater Associates, the world's largest hedge fund, says something like Modern Monetary Theory (MMT), the controversial economic theory championed by Rep. Alexandria Ocasio-Cortez, could actually happen. The billionaire hedge-fund manager detailed his comments in a wide-ranging essay posted on LinkedIn.
Dalio states that one element of MMT, the effective printing of money by governments, will be "inevitable" during the next recession. He argues this is because monetary policy and fiscal policy alone will not be able to pull the economy out of the next downturn.
Dalio also predicts the US will also have 0% interest rates in the future as the country follows the path of Japan and Europe. Ocasio-Cortez has proposed MMT as one way to fund her proposed Green New Deal.
The essential idea of MMT is that governments can fund an extraordinary expansion of programs without harming the economy. Dalio says MMT-based proposals could happen, but he also noted there were many different ways to deploy the "printed" funds, with Ocasio-Cortez's proposals just one possibility.
https://www.google.com/amp/s/markets.businessinsider.com/amp/news/aoc-endorsred-mmt-could-happen-ray-dalio-2019-5-1028162987
She is a hell of a lot more intelligent than conservatives think she is.
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