Home » xyzzy » Dungeon » Modern Monetary Theory (or, how I stopped worrying about the natl debt.)
Re: Modern Monetary Theory [message #94756 is a reply to message #94719] Sun, 07 November 2021 08:57 Go to previous messageGo to previous message
Rusty is currently offline  Rusty
Messages: 1186
Registered: May 2018
Location: Kansas City Missouri
Illuminati (3rd Degree)
Can the United States Government run out of money? NO! How? It is the issuer of the sovereign notes. All taxes MUST be made with the sovereign notes. This is true of any government that has a sovereign money supply. So, France, Germany, Italy do not have that capability like the US, Britain, Russia and China. They are bound by a debt ceiling.
We only do so for political jousting. Unfortunately.

The only constraint our sovereign money supply has is inflation from too much money not being used in our money supply. And of course resources. A minimal infrastructure bill has been passed, though it could be much larger. For the need is much larger. How is it that we can squander 6.4 trillion in 20 years of war in the middle east with no inflation. But spending half that in half as many years for worthwhile domestic improvements is inflationary? Politics of course, and the Neoliberal chokehold on our economy.

Stephany Kelton explains the deficit myth. It really is.

https://www.youtube.com/watch?v=mmuysv17T9M
 
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