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Mises Institute/Jeff Deist
“But let’s not kid ourselves: the US federal government already finances its operations, at least in part, using conjured money. 2020 federal spending may exceed $8 trillion as Congress and the Trump administration blow the roof off the authorized $5 trillion budget with COVID relief bills. More than half of that amount, maybe as much as $4 trillion, will be ‘deficit financed’ – a nice way of saying not financed by tax revenue. This is a first in American history, to put it mildly.”
USAGOLD note: In case you did not pick up on it, that $4 trillion figure represents one-half of government spending and most of that will be financed by the Federal Reserve through the auspices of its mighty money printing press. MMT would allow a massive increase in the deficit and unlimited money-printing to cover it with a healthy dose of moral hazard thrown in for good measure.
Repost from 6-29-2020