fiat currency

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"This Manifesto (Paul Krugman's) fails to inform Americans that the Federal Government is not constrained by revenue to spend since it must issue all the dollars, it needs no revenue from taxation/borrowing.

Before 1971, the federal government needed to obtain money from outside sources, because it did not have the unlimited ability to create money. It’s ability to create money (actually, to credit accounts), was limited by its supply of gold. In August, 1971, the federal government gave itself the unlimited ability to credit accounts. It became Monetarily Sovereign. Read below the fold...

This is Part Two of a critical review of The National Journal's Debate on "Our Fiscal Future" between John Podesta and Douglas Holtz-Eakin with Jim Tankersley moderating, at The George Washington University's Jack Morton Auditorium. This part provides more observations and evaluation on some of the propositions offered by Holtz-Eakin and Podesta.

H-E: Eliminating tax cuts for the rich will cost 1.5% to 2% GDP annually. Read below the fold...

Recently, Paul Rosenberg published a piece called: ““Stimulus for Dummies” -- A Public Service Instruction Guide.” at Open Left. Read below the fold...