Do Bond Sales & Borrowing Finance US Deficit Spending?
Professor L. Randall Wray responds to this question and debunks the misunderstandings and fallacies surrounding it.
Professor L. Randall Wray responds to this question and debunks the misunderstandings and fallacies surrounding it.
The answer to both questions posed in the title is, I think, a big fat no.
We should not be fooled by such self-imposed constraints. We should be able to see through them to understand that since they are imposed by government on itself, they can be removed.