https://www.bloomberg.com/news/articles/2020-03-26/australia-s-qe-program-shows-signs-of-success-in-first-weekCurrent Government debt hasn't got a ghost of a chance of being repaid for at least a generations and the RBA's revolving QE door is simply a Claytons: a money printing loophole with gig economy characteristics like Government money laundering!
QE is designed a slight of hand which cuts private banks in to the "joke" by giving them a small commission on Billions for being the money launderer but as time goes on, they cant kid all the people all the time!
MMT only says that a Soverign cant go broke by printing unlimited amounts of currency but of course that does not include its citizens.
Zimbabwe tried MMT and it was a disaster for Zimbabwean nationals. The arguement is that Zimbabwe did not use its printed money to
build infrastructure but instead it doled it out to its crony citizens.
Since 2008 we have not used our accumulating debt to build lasting infrastructure (with 5G, one could not say that the NBN is enduring infrastructure) and of course our $300 billion Government hand outs recently are far from being used as Nation Building.
IMO, time will tell.
All we need now is an escalation of Chinese import bans to hit our plumb iron ore, coal & gas exports and the ass will properly fall out of the AUD, IMO, and just imagine what that will do to our import pricing?
At present GenX/Y have spent their 2x $10K traunches of Super drawdowns on Cars, 4x4s & Utes TVs etc (which has propped up the car industry from late April to the end of July) and now that that show is over, car dealers & some retailers are now virtually idle.
I know that common logic says that recessions cause asset devaluation rather than inflation but our increased dependance on imports and the
uncertain value of our AUD is much different this time around and IMO makes stagflation a reasonable prospect and even if the value of iron ore ,
coal & LNG rises due to a devaluation of the AUD, their profits are narrowly distributed with most going overseas because of foreign ownership.
And the wealthy, rather than investing in business infrastructure now are going to cash in anticipation of the "Firesale" later.
ALL IMO only.
