The Corrupt Transformation of America

The Friedman Fallacy as I call it, describes how Milton Friedman’s philosophy in practice is socialist in nature. The United States, long touted as a beacon of capitalism, has quietly transformed into a socialist nation. While currency still exists, it no longer holds value in the traditional sense. Instead, mechanisms of power are derived from synthesizing the illusion of wealth. This startling reality has been shaped by Modern Monetary Theory (MMT) and decades of economic policies that prioritize appearances over substance.

What exists today is neither “capitalism” nor “socialism for the rich,” as Bernie Sanders suggests. It is socialism for the poor, coupled with oligarchy for the rich. Even the dynastic American monarchy—the generational transfer of wealth and power within the upper class—is beginning to falter under the strain of this illusionary system. The failure of “business as usual” narratives in the 2024 election underscores the growing disillusionment with this economic order.

America is not functioning as a capitalist nation because its currency is meaningless. True capital requires value—something that is increasingly absent in the modern American economy. The United States Dollar has a value that is crumbling under the weight of bad policy, cryptocurrency, and corruption.

The Socialist Reality: MMT and the Illusion of Wealth

Modern Monetary Theory, while offering flexibility in government spending, has turned America into a socialist economy by undermining the value of its currency and prioritizing wealth synthesis over real capital. Here’s how:

1. Money Without Meaning:
   • MMT enables endless money printing under the assumption that sovereign nations cannot “run out” of money. However, this ignores the fundamental truth that money only matters if it is valued.
   • In America’s current system, money has become a tool for maintaining appearances rather than a medium of exchange or a store of value.
2. The Illusion of Wealth:
   • Wealth in America is increasingly synthesized through speculative markets, cryptocurrency, and fraudulent accounting practices.
   • These mechanisms create the illusion of prosperity while failing to produce tangible economic benefits for the majority.
3. Socialism for the Poor, Oligarchy for the Rich:
   • While the rich benefit from mechanisms of power and influence, the broader economy operates as a socialist system designed to sustain the poor just enough to maintain the status quo.
   • This system does not serve anyone well, as even the upper class is beginning to feel the cracks in the dynastic framework that has traditionally supported their wealth and power.

The Failure of Targeted Taxation

The popular progressive idea of taxing the rich to solve economic inequality misses the mark entirely. The problem is not merely the accumulation of wealth but how that wealth is accumulated.

1. Investigating Wealth Hoarders:
   • Rather than simply taxing the wealthy, there must be investigations into how their wealth was obtained.
   • Was it through fair competition or fraudulent practices like speculative accounting, monopolistic behaviors, or systemic exploitation?
2. Stopping Fraudulent Accumulation:
   • Investigations must result in actionable steps to dismantle fraudulent mechanisms of wealth accumulation and prevent them from continuing.
   • This would include the destruction of speculative assets like cryptocurrencies and the dismantling of monopolistic entities that perpetuate systemic inequality.

The Role of MMT in This Transformation

Modern Monetary Theory has institutionalized this socialist-oligarchic system by:

1. Disconnecting Money from Value:
   • By allowing endless money printing, MMT has severed the connection between currency and real economic output.
   • The result is a system where currency serves no purpose other than to maintain the illusion of economic stability.
2. Creating Dependence on Government Spending:
   • MMT shifts the economy’s foundation from productive activity to government intervention, eroding the incentives for innovation and competition.
   • This creates a pseudo-socialist system where the poor rely on government handouts, while the rich manipulate the system for personal gain.
3. Fostering Global Distrust:
   • As BRICS nations and even the U.S. President-elect move toward alternative currencies like World Liberty Financial and DOGE, confidence in the dollar is collapsing.
   • This reflects the global recognition that America’s economy is no longer grounded in real capital or productivity.

Constructive Deflation Theory Can Restore Capitalism

To counter this transformation and restore a truly capitalist economy, I have created a new theory. Constructive Deflation Theory proposes the following reforms:

1. Currency Destruction:
   • Eliminate excess and speculative wealth by destroying fraudulent assets like cryptocurrencies.
   • Reintroduce a tangible connection between money and value through mechanisms that discourage wealth synthesis and encourage real economic output.
   • Consider actual currency destruction, and digital currency destruction to reduce the money supply rather than simply restricted access to it.
2. Investigative Accountability:
   • Conduct systemic investigations into the accumulation of wealth by individuals and corporations to determine whether it was achieved fairly or fraudulently.
   • Dismantle mechanisms of fraudulent accumulation and prevent them from being re-established.
3. Equitable Taxation:
   • Implement a sliding tax scale that prioritizes not taxing the poor, enabling them to climb out of poverty.
   • Focus taxation on wealth hoarders who fail to redistribute or reinvest their wealth productively.
4. Encouraging Real Competition:
   • Promote small businesses that challenge monopolies rather than incentivizing sell-outs to megacorporations.
   • Reform mergers and acquisitions to reward equitable deals and dismantle monopolistic practices.
5. Restoring Confidence in the Dollar:
   • Compel the government to publicly acknowledge the failures of cryptocurrency and abandon its tacit endorsement of speculative assets.
   • Rebuild trust in the U.S. dollar through policies that prioritize value creation over wealth synthesis.

America Is At An Economic Crossroads

America is at a crossroads. Its current system is not capitalism but a socialist-oligarchic hybrid that prioritizes illusion over reality. While MMT has enabled this transformation, the ultimate responsibility lies with policymakers and economic leaders who have failed to address systemic flaws.

Constructive Deflation Theory offers a path forward. By destroying fraudulent assets, investigating wealth accumulation, and restoring a connection between money and value, we can rebuild an economy that works for everyone. This is not just an economic necessity but a moral imperative to ensure that America remains a sovereign and sustainable nation.