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View Diary: Dean Baker: How much unemployment was caused by Reinhart & Rogoff (74 comments)

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  •  The austerians have such power because so (3+ / 0-)
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    lostinamerica, Ray Pensador, hoplite9

    many people, even our own brethren on the left and here at Kos are still stuck in a gold standard view of the world.  The Govt is a currency issuer....everyone else is a currency user.  The rest of us have to work or borrow to get money....the Govt creates money ad hoc (hence the term Fiat money) and yet people still believe that US treasury bond issuance (the "debt") allows the Govt to borrow its own money from we the people instead of the reality is that US Treasury issuance is A) wholly unnecessary and B) is nothing more today than the way the Fed manages the amount of bank reserves in the banking system which is how the Fed sets the interest rates.

    Once people finally accept that the Govt doesn't need our tax dollars to spend money, we can finally move past this whole SS solvency issue, or my favorite...."we are running out of money!" as if the US dollar was a commodity

    MMT = Reality

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

    by Auburn Parks on Fri Apr 26, 2013 at 07:51:19 PM PDT

    [ Parent ]

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