I have answered your criticisms multiple times and you simply repeat the same falsehoods. You say:

Overdrawing the treasury obviously requires a reckoning at some point, which means taxing the productive members of society at onerous levels, thus reducing the amount of capital available for job creation and other investments.

This is unequivocally, categorically, objectively false. What ‘reckoning’? There is no need to increase taxes unless inflation hits levels we deem harmful. And, as I have explained multiple times, a TGA overdraft in order to deficit spend is LESS inflationary than bond issuance because it does not involve payment of interest. Further, as I have REPEATEDLY EXPLAINED, none of these programs are necessarily inflationary because they contribute to the production of real assets and reduce unproductive ‘handouts’. And EVEN SO, I recommend they should still be undertaken deliberately with an EYE FOR INFLATION.

There is no “ponzi scheme”. You are not ‘stealing’ from future generations, loading them with debt that must be ‘repaid’. This is pure mythology that stems from common misconceptions about what government debt actually is.

On the one hand you ask “where’s the money?”, so I explain where it comes from. Then you say “that’s inflationary!” and I explain why it’s not. And round we go.

Second, if your method of overdrawing the treasury actually worked, every society worldwide would have done it by now to provide this Utopia you propose. And if it was such a great path to prosperity, why is it illegal for me to do it on a personal level?

More nations with sovereign currency SHOULD undertake similar policies. It’s not a panacea that would lead to “utopia”, but it would materially improve quality of life for millions of people. The reason it’s illegal for you to print your own money is the same reason the Founders denied this right to the state governments in Article 1 Section 10 of the Constitution. In order for fiat money to reliably maintain its value, the federal government must be the sole and sovereign issuer of money. Yes, banks create money when they issue loans. But the net value of this private money creation is zero once all debts are settled. In order for the private sector to run a surplus, the government MUST run a deficit. This is especially true in the US because it consistently runs a current account deficit for structural reasons.

You accuse me of not having “sound economics”, but your criticisms rely on nonsensical ideas about money, federal debt, and inflation. So long as the US is a sovereign nation which controls its own fiat, it can never default on its debt unless it chooses to. Congress has the power to moderate inflation through spending and taxation adjustments. What is ‘nonsense’ is your undying commitment the fallacy that federal deficits must be ‘repaid’ at some point in the future. To whom? The Fed? Why in God’s name would we do that?

Corporate accountant and former auditor with degrees in philosophy and accounting.

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