What do you think of the idea of an “MMT Amendment” to the US Constitution?

“Congress shall make no law restricting the issuance of debt by the United States.

The President shall cause US Treasury debt to be issued or redeemed as necessary to facilitate control of the interest rate, but without regard to the level of spending or taxation.

In order to promote the general welfare, the President shall, from time to time, and at his sole discretion, authorize the disbursement of funds to the governments of the several States, in proportion to their populations as determined in the most recent census. The Congress shall place no restrictions on the use of such funds by the States.

Any portions of existing laws that contradict portions of this amendment are nullified, but other portions of such laws shall remain in effect until acted upon by the Congress.

This amendment shall remain in force only so long as the United States is monetarily sovereign.”

I don’t think it is a necessary condition for MMT-inspired policies to be pursued, although it would streamline the process. Mostly I think that to the extent that it got publicity, it would generate opportunities for wider public discussion of the 7 DIF.

I know I should become thoroughly familiar with the principles of MMT but being an impetuous septuagenarian, here goes.

What constrains a sovereign currency nation from funding all of the government/public sector budgets of all of its subordinate political jurisdictions (55,000 plus here), bypassing bond markets, and issuing to these entities interest free credits/currency?

Well, I woundn’t know, not being an expert just a73 y/o someone looking for a better way to view the universe.

Thanks for the feedback.

Have you done the Diane Rhem’s Show or anything at MSNBC, King World News?

I wish you and your outstanding group of colleagues would go “real big time media” between now and June. Just getting the OWS folks to focus on facts like, “the U.S. can’t go broke”…”taxes don’t pay for anything”…”zero interest rates are good”, and being the “sole issuer of the currency” would stir the pot of political discourse enough to get the Tea Party to wonder about its harboring deficit terrorists.

Again, thanks for your brilliant insights.