The Debt Ceiling Hoax
The Federal government has the sovereign power for the
U.S. Treasury and the Federal Reserve Bank to control the money supply and so
it can always pay its bills without borrowing from the public. Federal debt has
no characteristics of what people think of as debt. For starters it will never
be paid off and it would be extremely destructive to do so. The amount of this
so-called debt is irrelevant except for managing the economy. It is the duty of
the U.S. Treasury and Federal Reserve Bank to have the right amount of money in
the economy to generate the production and income that maintains full
employment. Increasing the money supply to pay a federal budget deficit can
generate inflation and so the government will borrow from the public to reduce
their spending power to control spending and prevent inflation. The accumulated
debt is nothing but the legacy of the U.S. Treasury and the Federal Reserve
attempting to manage the economy. Since the federal government has the sovereign
power to create money, a debt ceiling is a complete hoax. Total up the billions
and billions of federal debt generated during the Bush and Trump administrations
and you will understand their politics.
