If you have seen this idea around and wondered about it, here is a video that explains
it pretty well:
Short version. The "Sovereign Money Machine" (creator of US dollars in the US) should not be concerned about running deficits or piling up debt because we can create any amount of money we want at will. We can control inflation by careful central planning to drain money out of the system if things get too hot and pour in more money so long as they don't. Worrying about deficits and debt is a waste of time and resources since we can create fiat money at will in any amount desired.
I don't plan to get into a debate over this. I'll leave that to others. I do plan to run a couple of articles on my blog in April that cover some basics about money, monetary systems, and the history of how we got where we are today. I think Millennials who will be asked to decide on the issues presented in the video linked above can benefit from some basics on this no matter where they may fall on the political spectrum. So my goal is to provide some in these upcoming articles written as best I could with no particular political agenda or slant.
it pretty well:
Short version. The "Sovereign Money Machine" (creator of US dollars in the US) should not be concerned about running deficits or piling up debt because we can create any amount of money we want at will. We can control inflation by careful central planning to drain money out of the system if things get too hot and pour in more money so long as they don't. Worrying about deficits and debt is a waste of time and resources since we can create fiat money at will in any amount desired.
I don't plan to get into a debate over this. I'll leave that to others. I do plan to run a couple of articles on my blog in April that cover some basics about money, monetary systems, and the history of how we got where we are today. I think Millennials who will be asked to decide on the issues presented in the video linked above can benefit from some basics on this no matter where they may fall on the political spectrum. So my goal is to provide some in these upcoming articles written as best I could with no particular political agenda or slant.
