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.
Even if the government ties its hands behind its back and its shoes together, it makes no difference – the balance sheets still balance.
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.