How to call the bluff of a deficit phony
WATERBURY, Conn.--(BUSINESS WIRE)--Warren Mosler, Connecticut’s Independent candidate for U.S. Senate today announced that it is an indisputable fact that U.S. Government spending is not operationally constrained by revenue and will give $100 million of his own money to pay down the Federal deficit if any Congressman or Senator can prove him wrong. “I am running for U.S. Senate to see my policies implemented to create the 20 million jobs we need. And to do this it must be understood that there is simply no such thing as the U.S. Federal government running out of money, nor is the Federal government operationally dependent on borrowing from China or anyone else. U.S. states, individuals, and companies can indeed become insolvent, but U.S. government checks will never bounce,” states Mosler. “Yes, large Federal deficits that push the economy beyond the point of full employment can lead to inflation or currency devaluation, but not bankruptcy and not bounced checks. If lawmakers today understood this fact, they would not be looking to cut Social Security and we would not still be mired in this disastrous recession.”
Let's use the upcoming debate to get the word out, the US has a fiat currency, we can never go broke. We borrow money from China because they want Treasury securities in exchange for all to goods they ship to us. We don't need the money to run the government. We can just print it.
Any Senator or Congressman who can prove otherwise can win $100 million of Mosler's money for Uncle Sam. The fact that no one has taken Mosler up on this challenge shows how phony the whole debate has always been.
So write a letter to the editor, challenging your Congressional and/or Senator deficit phony and ask them to put up or shut up.
Call their bluff.