To Repeat: There’s No Such Thing as “Printing Money”

Confusion continues surrounding federal spending. I cannot blame the public since there is a constant barrage of the term “printing money” ever since Trump said it. Previously, we discussed some key issues surrounding printing money: 1. Printing Money relates to the gold standard. 2. There were three ways a government could spend during the gold[…]

Postscript

As a postscript to my post “There’s No Such Thing as a Private Sector US Dollar”, I’d like to share with all of you a question that I received from a person who is trying to understand banking operations: “When banks make loans, you say that they denominate or ‘peg’ their IOUs to the US[…]

Macroeconomics: It’s Not About Scarcity. It’s About Efficiency

“Money” cannot be scarce for any sovereign currency issuing government. The question is never about “money”, ever. Mainstream economists, politicians, the media and “free market” advocates enjoy making economics a question of scarcity. A scarce supply of currency right along with scarce resources. When it comes to “money”, we must first understand what we’re talking[…]

The US Government Does Not “Print Money” to Fund Spending

On May 11, 2016, CNN ran an article by Heather Long with the headline, “How can Trump ‘print the money’?”, filled with misinformation that only neoliberalism can conjure up, finishing strong with warnings about the U.S. becoming just like a small African nation called, you guessed it – Zimbabwe. Let’s debunk the article. From the[…]

Introductory Series: On Private Debt and the Mismanagement of the US Economy

[Since this discussion is well over ten thousand words long, I have edited the complete text and in one case, rewritten the section on Minsky and financial instability in a language suitable for the general public, shortening it considerably, as well as broken the discussion down into three parts. I will finish editing and post[…]

On The National Debt: Is Trump Telling the Truth?

On Monday, CNN ran a story with the headline: “Trump: U.S. will never default ‘because you print the money’” which raised some eyebrows. The general public, trained by mainstream “economists”, the media and politicians had a freak-out moment, claiming that Trump is nuts. Firstly, because the general public thinks that the national debt is an[…]

Blame Neoliberalism, Not Each Other

What’s worse than listening to mindless deficit terrorism? Listening to people celebrate deficit reduction. Everyday people without any background in macroeconomics; who have no idea that there are three sectors in the economy and that federal spending depends quite a bit on what the external sector is doing; who have no knowledge of what monetary[…]