2/ Currency users require income. If we don't get it from the government, then we must get it from somewhere else.
3/ An example is a bank loan. We go to a local bank and *ask* them for, say, a $1,000 loan. They analyze our histories and our net worth, and they decide, "is this person likely to pay us back?" If yes, then they give us the money. 
4/ The second they give us that money, we are instantly in debt for $1,000 plus interest. We owe that money to a private, for-profit corporation. They will do whatever it takes to get their money back. This kind of debt is scary. It's called "private debt."
5/ A currency user (you and me) getting a bank loan. There is simply no equivalent situation for a currency issuer (federal government). There is no bank *above* the currency issuer. In the US, the Federal Reserve must do what Congress commands it to do.
6/ Here's Alan Greenspan, who was the predecessor to Ben Bernanke as chairman on the Federal Reserve.
7/ He didn't say "low probability." He didn't say "remote probability." He said ZERO probability.
8/ As long as the government still *exists* it is impossible for them to not be able to pay its bills.
9/ Currency issuers simply do not have a debt. They just don't. Not in any way that means anything like "a debt" does to you and me. Here's @mikenorman: "First of all, I want to make this statement. Flat out. The United States has no debt."
10/ Practically speaking, however, this is what the national debt really is 👇
The accumulation of every federal paycheck (what we used to call the federal deficit!) since the country began. Every dollar spent into the economy that has not yet been taxed back.
The accumulation of every federal paycheck (what we used to call the federal deficit!) since the country began. Every dollar spent into the economy that has not yet been taxed back.
11/ The national debt is the **debt-free savings** of every citizen: the money in our investments, bank accounts, and wallets.
Savings by definition means "debt free." We owe it to no one. No strings attached.
It is, and really should be called, our "national savings."
Savings by definition means "debt free." We owe it to no one. No strings attached.
It is, and really should be called, our "national savings."
12/ The national savings is our wealth! The problem is never "too much wealth"! The problem is wealth *inequality*.
Who has too much of it?
Who doesn't have enough of it?
(The national debt is what we OWN, not what we OWE.)
Who has too much of it?
Who doesn't have enough of it?
(The national debt is what we OWN, not what we OWE.)
13/ So that's the national debt, practically speaking. The real national debt, however, that really will bankrupt our grandchildren, has nothing to do with
money.
[END]
money.
[END]
14/14 To #LearnMMT in general, here is a good place to start.
@threadreaderapp unroll
