Thats right, just last fiscal year alone the Govt issued and redeemed almost $70 TRILLION worth of our mis-named national "debt". So any time you hear Obama, Democrats, or Republicans talk about how we need to make "shared sacrifices" RE: cutting spending that benefits the middle class, so we can "payback" our national "debt" just remember that every year we "payback" an amount equal to our national "debt" multiple times over, and nobody even knows. How is that possible?
Its simple really, the Federal Reserve is a bank, and just like any bank it has different types of accounts.…Money and Public Purpose
Which number is bigger $3.5 Trillion or $68 Trillion?
Auburn Parks
Haha! This is the stuff I have been writing--and posting--for the past few YEARS.
ReplyDeleteHe could have cited me.
ReplyDeleteHere's a post I put up on here back in September 2011 on this very point. Read it here.
ReplyDeleteEngineers are used to measuring flow - why not economists?
ReplyDeleteEconomists are trained like theoretical scientists rather than engineers, so they never figure out how things actually work.
ReplyDeleteHey Mike,
ReplyDeleteI did originally hear about the total redemptions number from you and the daily treasury statements from Matt Franko. I was honestly responding to an article Rodger Malcolm Mitchell wrote over at the Monetary Sovereignty blog. Which is why I didnt think about you.
However, I should have hat-tipped you, and thats my bad.
And Bob to me its like they also look too much at "subtractions" or "nets" instead of the leading source functions... or the individual minuends and subtrahends in the substractions...
ReplyDeletethis could be coming from Darwin/Spencer type thinking being the dominant paradigm in what the academe terms the "Social Sciences"... ie "no source" or "no authority"...
This would be like an NFL team not having an Offensive coordinator AND a Defensive coordinator and instead hiring a "net yardage coordinator".... and wondering why they would lose every week!
"but the deficit got larger!?!?! and we still lost?!?! LOL!