Stephanie Kelton-en twitterrak:
Stephanie Kelton @StephanieKelton1
1/We can think of the US government as the scorekeeper for the US dollar.
2016 abe. 7
Stephanie Kelton @StephanieKelton
2/The US government spends by adding $ points to the balance sheets of others.
Stephanie Kelton @StephanieKelton
3/When it collects taxes, it subtracts $ points from others.
Stephanie Kelton @StephanieKelton
4/It had to add points before it could subtract them, which means spending had to come first.
Stephanie Kelton @StephanieKelton
5/It can never run out of points.
Stephanie Kelton @StephanieKelton
6/It can collect more points than it adds, but only because it *previously* added more points than it collected.
Stephanie Kelton @StephanieKelton
7/IOW, government surpluses are only possible because of prior deficit spending.
Stephanie Kelton @StephanieKelton
8/A budget deficit raises the point total for the non-government A budget surplus reduces the point total for the non-government
Stephanie Kelton @StephanieKelton
9/Many people (economists included) celebrate(d) the Clinton surpluses.
Stephanie Kelton @StephanieKelton
10/But they were built on unprecedented and unsustainable private sector deficits. http://www.huffingtonpost.com/dean-baker/there-is-no-santa-claus-a_b_2362845.html …
Stephanie Kelton @StephanieKelton
11/Deficits matter, but not the way most people think. http://rooseveltforward.org/deficits-do-matter-not-way-you-think/ … –The End
Edozein gobernu subiranok, alegia, moneta propioa jaulkitzen duen edozein gobernuk goian aipatutako moduan funtzionatzen du.
joseba says:
Gobernu defizitaz: albiste ona
Good News, The U.S. Government Posts A $137 Billion Deficit In November (http://seekingalpha.com/article/4030359-good-news-u-s-government-posts-137-billion-deficit-november)
Dec.14.16
Alan Longbon
Summary
Money stock expands by $137b.
The government’s deficit is the private sector’s surplus and it just expanded.
Look forward to more jobs and employment of real resources, economic expansion.
The U.S. budget deficit widened to $136 billion for November 2016. This time last year the gap was $65 billion, and $587 billion for the year. See my report about that here.
Why is this good news?
The first question that comes to most people’s mind is why is this good news? Deficits are bad, are they not? In a household or business, yes, they are, as it means you are spending more than you are earning and at some stage will run out of money or need a loan or a debt haircut, or bankruptcy. The government is, however, not a household or a business; it is a unique creature that can issue currency, no other entity can legally do this, it is another ball game altogether and not well understood.
The government of a currency-issuing sovereign nation, such as the U.S.A, has the privilege of printing its own money. The U.S. government can print money and buy anything that is for sale in USD. It can never run out of money in the same way that a referee at a football match can never run out of points to award for kicking goals. The U.S government is the monopoly issuer of the USD, it is the referee at the football match and we in the private sector are the players and we want to win as many points as possible and they cost the referee nothing to award, he should award as many as we deserve.
The government’s deficit is the private sector’s surplus and that is a simple fact of accounting. If the national debt is $20T it is because $20T of business was transacted in that year and could not have been transacted without it.
The $136B injection from the government sector into the private sector last month was an increase in the overall money supply and will result in economic growth or at worse inflation. (Inflation if it is not matched by a corresponding increase in the output of real goods and services if the economy is at one hundred percent of capacity, which it clearly is not).