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.
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