Wray article on QE
Posted by WARREN MOSLER on November 18th, 2010
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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.-
MMT: Taxes function to regulate aggregate demand, and not to raise revenue per se.
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The funds to pay taxes and buy government securities come from government spending.
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November 18th, 2010 at 4:08 pm
And another reason to stop selling bonds is this: The federal debt is the total of outstanding bonds. No bonds = no debt = no more anguished breast-beating about the debt.
If the Treasury simply were allowed to stop creating and selling debt, the debt-hawks would see the debt decline every year until it was all gone, while the government could continue to spend as needed. How happy everyone would be.
Rodger Malcolm Mitchell
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Tom Hickey Reply:
November 18th, 2010 at 4:44 pm
Best of all, the bond vigilantes would be out of a job.
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SethM Reply:
November 20th, 2010 at 1:21 am
Thomas Edison said just about the same thing: “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 also. It is absurd to say that our country can issue $30 million in bonds, and not $30 million in currency. Both are promises to pay: but one promise fattens the usurer, and the other helps the people.”
Amazing, MMT has deep roots: http://www.michaeljournal.org/feddebunked.htm
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