I think the biggest policy failures in Washington over the past three or four decades are caused by confusion over the nature of money, and more specifically, the nature of a sovereign currency. So many of our policy makers simply do not understand that a sovereign issuer of the currency is not like a household user of the currency. For a sovereign issuer, there is never a solvency constraint. And a sovereign issuer spends by issuing its currency—not by borrowing it.Read it at Economonitor | Great Leap Forward
DOES CHAIRMAN BERNANKE KNOW SQUAT ABOUT MONEY?
by L. Randall Wray