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1/ Ever since 1796, when the first dollar was created, every single dollar of spending by the US federal gov't has been with created currency. This logically extends to, "Taxes cannot pay for federal spending." Below is confirmation from economists, experts, and those in power.
2/ (Federal spending includes the military; Social Security, Medicare, & Medicaid benefits; Congressmen, FBI, and judge salaries; interest on all US Treasury securities; and government provided healthcare.
So...if they're funded with created currency...how can they "go broke"?)
So...if they're funded with created currency...how can they "go broke"?)
3/ @benbernanke, Chairman of the Federal Reserve during the Great Financial Crisis of 2008, on CBS' @60Minutes in 2009:
"The banks have accounts at the Federal Reserve. To lend to a bank, we simply use a computer to mark up the size of the account."
"The banks have accounts at the Federal Reserve. To lend to a bank, we simply use a computer to mark up the size of the account."
4/ @benbernanke in 2013, testifying to Congress. @Forbes:
Congressman: "Where does the Fed get the money to buy [assets]? Do you create the reserves?”
B: "Yes."
C: "Are you printing money?"
B: "Not literally." (meaning in a computer, not physical bills)
archive.vn/Rl0TO
Congressman: "Where does the Fed get the money to buy [assets]? Do you create the reserves?”
B: "Yes."
C: "Are you printing money?"
B: "Not literally." (meaning in a computer, not physical bills)
archive.vn/Rl0TO
5/ Alan Greenspan, Chariman of the Federal Reserve, 1987-2006, testifying to @SpeakerRyan in 2005:
"There is nothing to prevent the government from creating as much money as it wants."
"There is nothing to prevent the government from creating as much money as it wants."
6/ Alan Greenspan, Chariman of the Federal Reserve, 1987-2006, on NBC's @MeetThePress:
"The United States can pay any debt it has because we can always print money to do that. There is zero probability of default."
"The United States can pay any debt it has because we can always print money to do that. There is zero probability of default."
7/ Beardsley Ruml, Chairman of the NY Federal Reserve, 1941-1946:
"TAXES FOR REVENUE ARE OBSOLETE"
Title of an article by Ruml in the January 1946 issue of American Affairs quarterly journal: bilbo.economicoutlook.net/blog/wp-conten…
"TAXES FOR REVENUE ARE OBSOLETE"
Title of an article by Ruml in the January 1946 issue of American Affairs quarterly journal: bilbo.economicoutlook.net/blog/wp-conten…
8/ Economist @StephanieKelton, in the abstract of her 1998 paper, "Can Taxes and Bonds Finance Government Spending?"
levyinstitute.org/pubs/wp244.pdf
levyinstitute.org/pubs/wp244.pdf
9/ Australian economist @billy_blog, 2010:
"Taxpayers do not fund anything. When commentators & politicians use terms like “taxpayers’ funds are being mis-spent,” you can immediately conclude they don't understand how the monetary system functions."
bilbo.economicoutlook.net/blog/?p=9281
"Taxpayers do not fund anything. When commentators & politicians use terms like “taxpayers’ funds are being mis-spent,” you can immediately conclude they don't understand how the monetary system functions."
bilbo.economicoutlook.net/blog/?p=9281
10/ American economist L Randall Wray:
"Taxes are not needed to "pay for" government spending."
nakedcapitalism.com/2014/05/randy-…
"Taxes are not needed to "pay for" government spending."
nakedcapitalism.com/2014/05/randy-…
11/ @wbmosler, the "father" of #MMT, on page 15 in his book, The Seven Deadly Innocent Frauds of Economic Policy (2010):
"It makes no sense at all to think that the government has to get money by taxing in order to spend."
moslereconomics.com/2009/12/10/7-d…
"It makes no sense at all to think that the government has to get money by taxing in order to spend."
moslereconomics.com/2009/12/10/7-d…
12/ Macroeconomics expert @elliswinningham:
"In short, you do not fund the US government, the US government funds you."
From elliswinningham.net/index.php/2018…
"In short, you do not fund the US government, the US government funds you."
From elliswinningham.net/index.php/2018…
13/ @wbmosler (again), the "father" of #MMT, on page 9 in his book, "The Seven Deadly Innocent Frauds of Economic Policy" (2010, moslereconomics.com/2009/12/10/7-d…):
Fraud number one: "The government must raised funds through taxation or borrowing in order to spend."
Fraud number one: "The government must raised funds through taxation or borrowing in order to spend."
Any other good ones, please share them in the replies.
#MMT: All federal spending is done with created currency...which logically extends to mean that federal taxes do not and cannot fund federal spending. Confirmation by many economists, experts, and the powerful, each with sources. [article form] citizensmedia.tv/2019/01/06/mmt…
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