And exactly how can any aggregate economy efficiently create jobs without adequate supply of publicly-created currency?
Double-entry accounting (~500 yrs of it) dictates that private-savings cannot accumulate without public-sector "deficits"; aka, currency creation.
The approach to this discussion started out off base.
People create markets enforced by national boundaries, then they create a sovereign currency to allow efficient denomination of all transactions. Currency is pure bookkeeping, and should never be in short supply.
Whenever bankers temporarily convince a naive population that they are in danger of running out of their own bookkeeping currency - then the rate of transactions slows, asset devaluation is forced, and affluent classes hoarding cash are able to buy up assets from distressed citizens at criminal valuations.
It's how the "financier" class periodically fleeces the rest of the population.
For an operational introduction to how currency systems actually work, please see the following.
"Almost everybody talks about budget deficits. Almost everybody seems in principle to be against them. And almost no one, literally, knows what [they are] talking about."
Robert Eisner, The Misunderstood Economy, p.90; Google Books;
books.google.com
Public initiative and the beginning of US currency: A confused electorate can end up pretending to borrow it's own currency, instead of creating it?
monetary.org
Fiscal sustainability 101, by Bill Mitchell
bilbo.economicoutlook.net
Teaching the Fallacy of Composition: The Federal Budget Deficit, by Randy Wray
cfeps.org
7 Deadly, Innocent Frauds, by Warren Mosler
moslereconomics.com
American's have always known, and still know, that public will comes first, and currency creation second.
That was driven home especially by the realization that the gold std had to be discarded, to allow policy flexibility to match demanding contexts, and then also by realizing that the government of a sovereign people never derives "revenue" in the form of it's own currency, and instead uses currency only to denominate the will of the people to collectively act.
tinyurl.com
[Without this freedom, the USA could not have won WWII, and will not be able to collectively act to end our current, policy-driven recession.]
Still worried about a civil government deciding to create more of it's own bookkeeping currency? We can't run out, and NO, we don't have to pay it back to ourselves! National "debt" is nominal only, as an accounting figure, and is NOT an actual deficit or debt in any real terms.
Every country in the world (except for the wacky euro-zone countries) creates their own currency. So how, as a point of logic, could anyone "borrow" in order to create any given national currency?
"By George, Bernanke, I think I've got it!!! I'll pretend to borrow your borrowed currency if you'll pretend to borrow my borrowed currency! Then we can keep everyone else thinking that we're RUNNING OUT OF MONEY."
ABSOLUTELY BRILLIANT! |
