Райчо Марков posted the article HOW ARE YOU GOING TO PAY FOR IT?. This is a speech written by Warren Mosler.
Warren Mosler: “So how do you like this unsolicited speech I drafted for him (PRESIDENT BERNIE SANDERS – well apparently not anymore)”:
Early on, he wrote these words for Sanders to speak.
And before I begin, I’d like to thank my chief economist, Professor Stephanie Kelton, a specialist in economic policy as well as Federal Reserve Bank monetary operations, for educating me on this critical question.
Stephanie Kelton is a name you will see in several places in my blogs and posting, so I wanted you to know who she is.
Now, for a little tantalizing bit of meat from the “speech”.
The public debt is nothing more than all the dollars spent by the government
that haven’t yet been used to pay taxes.
And those dollars stay in the economy as someone’s savings until they get used to pay taxes.
Think of it this way – when the government spends a dollar, someone has to have it.
And if it also taxes away that dollar, that dollar is gone from the economy.
But if the government spends a dollar and doesn’t tax it away, it stays in the economy as someone’s savings.
And most all of that savings is right there at the Federal Reserve Bank in bank accounts that they call Treasury bonds, notes, and bills. Yes, all those Treasury’s are just dollars in savings accounts at the Federal Reserve Bank with fancy names.