I woke up this morning with the thought of trying Newton’s Theory of gravity. The idea came to mind because of an experience last night that I will get to in a moment.
The first thing I did was to sit up in bed and reach for the glass of water on my night stand. As I picked it up, the water was still sitting in the glass just as Newton’s Theory said it would. I lifted the glass to my lips, tipped it up, and the water came spilling out into my mouth and down my throat. I was beginning to think that I liked this theory.
I threw my legs over the side of the bed, and stood up. That worked pretty well. I walked over to the stairs. Carefully grabbing the side rails to prevent me from flying off into space, I walked down the stairs to the dining room for breakfast. Fortunately, I was able to walk down the stairs without the help of my hands on the side rails. With each step I took, I descended the stairs, and did not fly up to the ceiling.
Tomorrow, I might try out someone else’s theory of gravity to see if it works as well as Newton’s theory.
Oh, yes, I promised to talk about my experience last night that prompted me to try out the theory of gravity.
Last night we went to a restaurant for supper. I decided to try Modern Money Theory as an experiment. We were ushered in. We sat down, We ordered our meals. The waitress brought them to us. When we were done, I figured it was time for me to try the new money theory.
I handed my credit card to the waitress. She used the restaurant’s computers to connect with the credit card company to see if they would cover the bill. One computer said to the other, “Sure we’ll cover this bill. We’ll even cover the nice tip for the waitress. Trust us.” The restaurant was satisfied. We walked out of the restaurant, free and clear. The restaurant and the waitress were happy to have served us, we were happy to have eaten there, and no dollar bills were ever seen or mentioned while we were there.
It turns out that the day before, I had received a credit card bill for the month of August. I had logged into my bank account on the web using my computer, and told the bank to pay the credit card bill. Their computer also said, “Sure we’ll pay it, Trust us.” I keep records of all my computer transactions, but no bank has ever failed me yet.
I know that the bank lends out most of the money it has so that it can earn interest. What would have happened if the bank did not have the money on hand to pay the bill as they said they would? They could have connected to the computers at The Federal Reserve Bank, and said “We need to borrow some money to cover this payout.” The Federal Reserve’s computer would say, “Sure, we’ll credit your account here at the Federal Reserve with the money you need. Trust Us.”
So far, nobody has ever doubted the word of The Federal Reserve Bank. When the Fed says you have the money, you just know that you have the money. Modern Money Theory is just an explanation of all of this. This is just like Newton’s theory that explained that I would not fly up to the ceiling if I didn’t use the hand rails. It doesn’t make any difference if Newton’s Theory is right or not. It just happens to explain and predict what happens in every day life. This is exactly the power of Modern Money Theory. You don’t specifically try the theory. It just explains what happens.