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View Diary: Why deficits don't matter - the reality of government finance (116 comments)

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  •  The difference (0+ / 0-)

    The difference is that the US dollar is the world reserve currency. This provides an extra buffer that delays the onset of inflation. It is clear in Asia that an inflation wave is building (having just spent time there talking to business people). It will still take time to get here but it is coming.

    The problem is that this discussion ignores the real economic problems that need addressing to build a sustainable recovery. (By that I mean real structural problems having to do with health care, demographics, defense, education etc).

    Those who make peaceful revolution impossible will make violent revolution inevitable. - JFK

    by taonow on Sat Nov 10, 2012 at 05:29:01 AM PST

    [ Parent ]

    •  Actually, once the simple facts of our monetary (6+ / 0-)

      and national accounting system actually works is known, then it's inevitable that we're lead to concentrate on precisely those things:  that is, the real economy.

      Once money is known to be what it IS -- a simple unit of account rather than wealth itself -- then looking at real  wealth is easier.

      The question of what to do about our elderly becomes:  "Do we have the resources to build housing, grow food, etc for our elderly?"

      Cuz the question of whether we can create marks on a computer screen is obviouse:  Of course we can.  And that's all money is, marks  on a computer screen.

    •  The fact that we're the reserve currency (2+ / 0-)
      Recommended by:
      katiec, psyched

      doesn't matter to basic MMT. Everything we say the US can do with its fiat currency, the UK, Australia, Canada, Japan, and other nations with their own sovereign fiat currencies can also do.

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