Skip to main content

View Diary: Insolvency, tax cuts, military spending and social security (188 comments)

Comment Preferences

  •  No, they ARE the same (0+ / 0-)

    Not at all. They are not opposites.  Government money is debt & government debt is money. This is a key point, that everybody used to understand. FDR made a point of saying this in his second Fireside Chat.  

    You can't eliminate the Federal Debt without eliminating the base money in the economy. They are the same thing! A Treasury bond is nothing but (a sum of) dollar bills with dates in the future printed on them. A dollar bill is nothing but a matured treasury bond, a bond with a date in the present or past on it.

    A government exchanging its bonds for its dollars is NOT borrowing - it is a completely different transaction from borrowing, that happens to be called by the same word in order to confuse the suckers.

    Printing money is not the modern definition of inflation, although it may be an older one. The modern definition is empirical price-inflation, e.g. the CPI.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site