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View Diary: Taking Back The House 2014: Michele Bachmann (206 comments)

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  •  Exactly (3+ / 0-)
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    MichaelNY, dorkenergy, elwior

    Gerrymandering, debt ceiling, fiscal cliff are all important issues for us but the general populace either doesn't care or pretends to care while not following what's going on.

    The only thing I could think of is:

    "Construct Not Obstruct" in relation to jobs, but even that is kind of....corny.


    by RVKU on Sun Jan 06, 2013 at 10:38:00 AM PST

    [ Parent ]

    •  Thanks for the help. (1+ / 0-)
      Recommended by:

      We do need to put it in terms they understand.

      Some of the efforts at NEP have focused on the difference between a government and a household -- see, in particular, Stephanie Kelton of UMKC. Here's a good interview she did with RT

      ((youtube Yiw8Lyw1XGc))

      (Click here if that embed didn't come through.)

      She covers the household-government difference in several places, one is in another interview (probably all worthwhile, but here's the part on this point):

      HARRY SHEARER:  We hear the United States government, especially during the election campaign, being compared to two different entities – to a household and to Greece. Might you explain why the U.S. economy does or doesn’t resemble a household in America and/or Greece?

      STEPHANIE KELTON:  Sure. I would be very happy to. If I could dispel and disabuse people of these two myths, we would have an entirely different national conversation.

      So, first the household debt analogy. This is a really powerful one. And the finances that most people are familiar with, of course, are their own personal finances. And so I think it resonates with them when they hear people make the argument that the federal government faces the same kinds of constraints that you and I face, that we have to tighten our belts when times get tough, and the federal government should do the same thing. And the person who really I think hammered this home so was Ross Perot with his little charts and his feisty little attitude, you know, telling the American people that we’re on the verge of bankruptcy in this nation and if he ran his business the way the government runs its operations, why, he’d be broke, and all this. So that’s where that really, really comes from. And today, you know, it’s the Peterson – Pete Peterson and his ilk that are pushing this.

      So ask yourself, what is the difference? Why is it that a household has to live within its means? Why is it that a household can only borrow so much before it runs into possibly a situation where a bill comes due and the household can’t pay? Why is it that businesses sometimes go bankrupt? Why is it that state governments or, you know, Orange County – why is it that some of these folks can actually go bankrupt?

      The fundamental difference between a household, a business, a state or a local government and the U.S. federal government is that the U.S. federal government is the issuer of the currency, and everybody else that I mentioned is merely the user of the currency. We all have to go out and get the dollar in order to spend the dollar. We either have to earn it, we have to borrow it, we make investments, we may have interest income – whatever, but we have to come up with the currency from some source.

      The U.S. government in contrast is the source of the currency, right? The U.S. dollar comes from the U.S. government. Congress has given itself a monopoly over the issuance of the U.S. dollar. If you and I try to do it, we go to jail. It’s called counterfeiting, right? But the U.S. government has the monopoly right to create the currency. And as the issuer of the currency, it can, as Alan Greenspan has said, as Ben Bernanke has said, it can never run out, it can never go broke, and it can never be forced to miss a payment.

      Also, see the posts by her and others at the New Economic Perspectives link I gave above.

      The more of us understanding and working on this, the better.

      ambiguity is okay ... if you know what I mean

      by dorkenergy on Sun Jan 06, 2013 at 12:30:18 PM PST

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