Thursday, August 18, 2022

What is modern monetary theory? | John Hancock Investment Mgt

Money is not wealth. It is a placeholder for wealth. If you create more of it, then by definition each unit of money is worth less, unless somehow you created an equivalent amount of wealth.

I am a bit worried about the 40% increase in the money supply that happened over the last two calendar years and what this means for my retirement.

So increasing the money supply can be a form of theft. It is transferring value to those people who receive the new currency at the expense of the people holding the existing currency.

If we count precious metals as a form of wealth, then having a backed currency would make money a form of wealth.

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