It is always a good sign when some fiscal deficit terrorist or another bleeds in the media that they’re not getting enough attention. Yesterday (October 12, 2016), the Forbes magazine published an Op Ed (although I wouldn’t call the content educational in any way) by a commentator with the Twitter username @bthebudgetguy – The Deficit Was A Big, Big Loser In Sunday Night’s Debate Between Trump And Clinton. It is not the first time the author has entertained this theme. His bleat? That the current political farce that Americans call the Presidential election campaign is ignoring the state of the fiscal balance. Oh my! What a travesty. The two liars, masquerading as Presidential candidates, have the audacity to talk about other irrelevant things and leave the most irrelevant thing I can think of neglected. But what this tells me is that the millions that the likes of the Peter Peterson Foundation and its ilk have spent on trying to scare Americans witless about the fiscal debt and the US public debt situation has been wasted. That is something to celebrate in fact.…
The glaring reality of a currency-issuing government in a Fiat monetary system. The simple fact that the likes of the Peter Peterson Foundation try to obscure in their venal and expensive deficit terrorism – which if you believe @thebudgetguy hasn’t been particularly effective anyway.
Say it again out aloud – “central banks are ultimately owned by governments”.
Say it again out aloud – any public bonds on central bank balance sheets amount to the government owning its own debt. One computer keystroke turns the positive accounting balance for that debt into a zero balance with no consequences of importance whatsoever…Bill Mitchell – billy blog
Currency-issuing governments can keystroke their outstanding debt into oblivion
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia