This entry is a part of our larger series … “There is no ‘Debt Doomsday’ Approaching“. The first entry in this series can be found here at this link.
We continue the discussion from the last entry.
For a portion of this series, we are first referring to Edward J. Delzio’s work on “The National Deb(i)t“.
The last entry detailed the two entities that operate within the economy. The United States Federal Government, or the issuer of dollars. The Non-Federal Government (munipalities, businesses, State Goverments, Individuals and even Foreign Governments) that then by necessity must use dollars that they issue.
As outlined, each and every time the U.S. Federal Government issues dollars, it is “printing money” … or … ‘deficet spending’. When this happens, the U.S. Federal Government is “printing money” and they are thus ‘crediting dollars’ to us. And Non-Federal Government participants can also, in a manner of speaking, “print money”. We can do this each time we use a credit card, start a business, and so on. In effect, this is the Non-Federal Government (you and I) ‘deficet spending’ or “printing money”, so to speak. The Non-Federal Government (you and I) are thus multiplying U.S. Dollars.
The point was thus highlighted that Federal Government issuing dollars, and you, I, and the Non-Federal Government ‘deficet spending’ by multiplying those dollars, is the optimal environment for a growing, expanding and stronger economy.
Notice, we did not say anything about ‘debt’. We simply discussed the issuance of dollars and the multiplying of those dollars … however that is done … and this relates to the environment for a strong economy.
As previously outlined in 1971, United States Bonds, or “debt” or ‘dollars’, were no longer convertible to Gold.
Now if you notice, this brings about a completely new paradigm that has existed since that time. You and I? We operate like a business. Although the United States still taxes it’s citizens, it no longer needs to tax it’s citizens in order to finance itself.
Instead, the United States Federal Government has taken on a much, much more complicated task.
The following is absolutely vital to understanding economics in the modern world. There are two branches of Government that concerns itself with this complicated task. What two branches? This is discussed in the following video entry …
(After the following video, you can find the next video in this series at the following link …)