Every cool person at your office has been talking about it all week, and now it looks like the biggest boys on Wall Street are feeling compelled to weigh in on the debate that has hipster fuccboi Neel Kashkari pretending he hates Twitter.
We'll stop beating around the bush and just say the bad news out loud: Larry Fink has some thoughts on MMT:
BlackRock Chief Executive Officer Larry Fink said he’s not a proponent of modern monetary theory.
“That’s garbage,” Fink said in an interview with Erik Schatzker on Bloomberg Television Thursday. “I’m a big believer that deficits do matter. I’m a big believer that deficits are going to be driving interest rates much higher and it could drive them to an unsustainable level.”
Larry Fink doesn't like an economic policy that potentially makes money more expensive? How does Bob Kraft feel about hidden cameras?
But the guy running the world's largest hedge fund™ has a deeper, accidentally ironic analogic reason to oppose the theory that posits the Treasury can just keep printing money to pay debt until the notions of money and debt lose all meaning:
Fink said, “the theory is that until we see deficits harm that will tell us deficits are too high. To me, as a parent, that’s like watching your children have bad behavior and you just watch and watch and watch until that behavior becomes monumental. I think that’s not a good approach.”
Yes, children...If only Larry Fink had a better, closer analogy about people he's in charge of behaving badly...