Question: There seems to be a new ideology in town, many nations are spending like they have never spent before. What is the end game of this new monetary theory, which has the potential to create not just high inflation, but perhaps even bring down the whole deck of cards that is the debt economy? One would think that after the pandemic, nations would be happy to just get their economies back on their feet. What is the cause and core behind this massive experiment at a time of significant fragility and instability in the world economy?
Answer from the Ascended Master Saint Germain through Kim Michaels. This answer was given during the 2021 Webinar – Ending the Era of Ideology.
I would not say it is as much an ideology as a necessity, where nations are looking at the economy and they are simply realizing that if they do not stimulate the economy, then they will have a crisis that might in fact cause the entire system to break down. They feel that the only way is that the government stimulates the economy because surely, private businesses are not going to do so.
You have not in the history of capitalism seen that a company like Google or Amazon or Apple will say: “Oh, we have made a huge profit, we have so much money in the bank, we are going to give this away to people in order to stimulate the economy.” That just is not likely to happen. Therefore, it is up to the governments to do this.
Now, it is true that this can lead to inflation but it does not have to. It depends on how it is approached. And it depends on the nation’s willingness to look at the entire financial and economic system, especially the debt economy. We have talked about this before that it is not sustainable, that you allow private banks to create money out of nothing and charge interest and that there needs to be a different way to approach this. Many nations are not open to this at the present but if they continue spending money, then they might be forced to consider it because they might be faced with either we do something differently, or the entire system is going to crash.
It is clear, as we have said before, that there will come a point where the debt has reached such proportions that the only realistic solution is to nullify all debt. But this, of course, will not work in the long term unless you also look at how did we get into debt in the first place and how do we change this.
In the American Constitution it is stated very clearly that only Congress has the power to print money. But Congress has given that power to private banks, they are not printing the money, they are creating it artificially through loans that they do not have any security for. But nevertheless, it is virtually the same as allowing them to print money but in reality, it is possible to create a system where the government is in control of the amount of money that circulates in society and they do so in such a way that there is enough money to create sustained economic growth without creating inflation. It is possible to do so, especially today with modern computer technology. It would have been difficult to do this 30, even 20 years ago, but today it is possible to do so.
There are economists in the world who are tuned enough to my presence that they can bring forth these new economic tools and theories and it is simply a matter of there being the willingness on the part of the governments to look at this and implement it and the question here is: Will they do this voluntarily or will they have to be forced by an impending breakdown to look at something new?
I do not care to make any prediction on this, some countries will be willing to look at it voluntarily, others will have to be forced, which ones can be difficult to assess at the time, so let us just wait and see what happens.
Copyright © 2021 Kim Michaels