Loading ...[Mauldin seems to be endorsing MMT with his remarks about the Austrian school and the dollar & Japan]
Federal Reserve: $5 Trillion Heading to $10 Trillion
With recent activities, the Federal Reserve’s balance sheet has exploded to $5 trillion plus. My friend Peter Boockvar thinks assets could easily reach $10 trillion, and problems will develop when they try to wind it down. I’m not so sure they will do that. I think this time they may take a page from the Great Depression playbook and simply not worry about winding it down.
Let me go one step further. The 2020s will be the decade of “Whatever It Takes.” I’ve said that before the decade ends, the Fed balance sheet will be $20 trillion and probably approach $30 trillion. I still think that is the case.
While those are staggering numbers, percentage-wise they are no more than Japan has today. We will have to explore later what this will do to the dollar’s value. I can hear the Austrian-school economists screaming it has to be worth less. But that hasn’t been the case in Japan, and only slightly so in Europe and for different reasons. Each country will have its own characteristics when it comes to expanding its monetary base.
https://www.mauldineconomics.com/frontlinethoughts/postcards-from-the-frontline