And thus that taxes and borrowing are not necessary for Govt spending.
This is a fairly comprehensive list of examples that I've accumulated over time. Other people might like to bookmark some of the links for future reference when boobs tell you that the Govt is running out of money or cant afford full employment:
Do US dollars exist in nature? No. They are a man-made invention.
Per the Constitution Article 1 Section 8, Congress shall have the authority "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
Congress (We The People) have enacted all the laws that created the US dollar. Obviously, where else would they come from? Counterfeiting is illegal.
Don't believe me or the Constitution, then how about Former Fed Chairman Greenspan?
Or the most recent Ex-Fed chairman Bernanke?
Watch Ben on 60 min for 1 min starting at 7:20 and they'll lay it all out for you.
Or Ben in writing, the second quote prescribes cutting FICA.
"But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation."
"In practice, the effectiveness of anti-deflation policy could be significantly enhanced by cooperation between the monetary and fiscal authorities. A broad-based tax cut, for example, accommodated by a program of open-market purchases to alleviate any tendency for interest rates to increase, would almost certainly be an effective stimulant to consumption and hence to prices. Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers. A money-financed tax cut is essentially equivalent to Milton Friedman's famous "helicopter drop" of money."
If not those 2 then how about former Deputy Treasury Secretary Frank Newman:
Just 2 min starting at 26:00 min in here.
Or you can google him and read either of his two excellent books, "Freedom from National Debt" and "6 Myth Holding America Back".
Or the St. Louis Fed's Brett W. Fawley and Luciana Juvenal:
"As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills.6 In this sense, the government is not dependent on credit markets to remain operational. Moreover, there will always be a market for U.S. government debt at home because the U.S. government has the only means of creating risk-free dollar-denominated assets (by virtue of never facing insolvency and paying interest rates over the inflation rate, e.g., TIPS—Treasury Inflation-Protected Securities)."
Maybe we should go back further in time?
NY Fed Chairman Beardsley Ruml from 1946:
The first great Fed Chairman Marriner Eccles (They named the Fed building after him):
""A legitimate government can both spend and lend money into circulation, while banks can only lend significant amounts of their promissory bank notes, for they can neither give away nor spend but a tiny fraction of the money the people need. When your bankers here in England place money in circulation, there is always a debt principal to be returned and usury to be paid. The result is that you have always too little credit in circulation to give the workers full employment. You do not have too many workers, you have too little money in circulation, and that which circulates, all bares the endless burden of unpayable debt and usury." Attributed to Benjamin Franklin - Ellen Brown and Reed Simpson, Web of Debt, 2008."
Henry Ford and Thomas Edison:
"But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good. The difference between the bond and the bill is that the bond lets the money brokers collect twice the amount of the bond and an additional 20 per cent, whereas the currency pays nobody but those who directly contribute to Muscle Shoals in some useful way.
” … if the Government issues currency, it provides itself with enough money to increase the national wealth at Muscles Shoals without disturbing the business of the rest of the country. And in doing this it increases its income without adding a penny to its debt."
Or their original correspondence from the NYT archives (Warning, PDF):
And finally the grand Puba example of them all WWII.
25% of GDP deficits for 4 years. The modern equivalent of a $3.7 Trillion deficit each year. It would be like the Govt stopped collecting all taxes for 4 years.
Just ask yourself, would we ever lose a real war for survival because we ran out of nominal dollar entries aka money?
"We give up China, we will submit to your rule because we ran out of our own money, that only we can make."
The US Dollar comes from the USA
The Yen comes from Japan
The Yuan comes from China
The Euro comes from Europe.
China cant create Dollars and We cant create Yuan.
How appropriate. Just found this great example this morning from the Bank of England.
Check out the video, or the original article the interview is based on (Warning: PDF)