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View Diary: Jobless benefits climb to 357,000. GDP growth for 4th quarter tiny bit better than first report (23 comments)

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  •  Exactly...the deficit terrorists and the Dems who (0+ / 0-)

    placate them are actively hurting 10's of millions of working Americans.
    GDP = (G)overnment spending + (C)onsumer spending +
    (I)nvestment spending + Net Exports
    How is cutting (G)ovt spending supposed to increase GDP?
    How is raising taxes (which decreases (C)onsumer spending) supposed to increase GDP?
    People are so confused about how our Fiat (re:sovereign) monetary system works.
    Where do US dollars come from?.......The US GOVERNMENT.
    They are called Federal Reserve Notes for a reason....they come from the FEDERAL RESERVE (which of course was created and is controlled by congress).
    The whole idea of the ISSUER of the US dollar needing to borrow money from citizens or China is simply laughable.  The Chinese are no closer to being able to create US dollars than we are to making Chinese Yuan.  US treasuries are nothing more than savings bonds held by the public (and plenty are held by the Fed, showing just how fictional the so-called US debt is).  What would happen if we tried to "pay down the debt"?  Well, the Fed would transfer China's US dollars via its money computer from Chinese owned interest bearing US savingstreasury bonds into cash held in China's non interest bearing Reserve=checking accounts.  Why would China not want to make interest on its US dollar holdings?  They wouldn't so they would just buy more USTs.  This is why we can't pay down the so-called debt.....its not really debt, its the accumulated US dollar savings of the the non-US govt world.  You can either have USTs or cash.....that money can't be destroyed

    MMT =Reality
    http://neweconomicperspectives.org/

    "The Earth is my country and Science my religion" Christiaan Huygens

    by Auburn Parks on Fri Mar 29, 2013 at 05:40:57 AM PDT

    [ Parent ]

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