hi Saintex, I’m intrigued by MMT. It has a commonsense approach. It’s saying a country is not like a business or a household (which needs fiscal discipline) but a government creates the conditions for the private sector to flourish, or not. If the govt. overspends it creates income for the private sector, and the associated growth. But as you suggest in your note, it must keep an eye on the value of its currency and its inflation if it’s going to run deficit spending. I’m actually worried about governments cutting their deficits (Doge) and even here is NZ there is talk of a balanced budget approach. The other concern is the reintroduction of tariff wars. The free trade era paved the way for a prosperous investment climate with most firms developing activities around the globe. But with the rise of political risk we face now it is a tricky time for a lot of international companies. Upshot is there could easily be a 50% contraction, maybe more. I am having a bit of a break from small caps and micro caps Aussie shares and looking more at solid players like Telstra, energy companies, Woolworths. (But I do like my SRV holding) things that should hang around. I’m also getting a lot more term deposits iwith ANZ. Cautious stuff.
