When the world is awash in cheap money, interest rates have to go down in order to entice people to keep borrowing so they can consume more than their income using debt. This is how we get negative interest rates. It is not a sign of health but rather a sign of the end of a system.
Likewise when the people have grown tired of listening to corrupt government they would rather riot than work and pay taxes. So what do you do? You institute negative taxation of course. And that is exactly what "modern monetary theory" is. It's a bribe to stay calm, stay quiet, don't break things, don't kill the elite in the streets.
And it Hong Hong it's now policy and government promises to give every adult $1284 USD (10k HKD) in order to lift spirits. Well let me tell you, life in Hong Kong is not cheap and $1284 is a joke. This is not going to appease anyone for very long. All it is likely to do is force Hong Kong to break the long standing peg of the HKD to the USD. And when that happens, the HKD will go into freefall such that the 10k HKD will only buy half as much as it used to.
Hongkongese, get your wealth out of the hong kong dollar ASAP. I don't know what else to tell you. Your government is signaling desperation and others will lose confidence in them. As a result the HKD will plunge. Get out while you still can. Get into gold and silver if possible. Time is quickly running out for you.
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2 comments:
If MMT is so great, will governments abolish taxation? Sorry, silly question.
They should each use their $1284 to buy an AR-15 and 3000 rounds of ammo...
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