Warren Mosler is running for the Senate in Connecticut in the Independent Party primary. Unlike both the Democratic and Republican candidates Warren really understands economics and he’s really brilliant at explaining it to regular folks. Here’s a youtube on why we never have to worry about having enough money to repay the Chinese, or ant other nations that are holding US Dollars. The main point is that Government “borrowing” using debt instruments issued by the Government, is not like you and me borrowing money to fund something, because it carries no solvency risk for the Government.
|By: letsgetitdone Monday May 10, 2010 9:49 am|
James K. Galbraith’s short piece in The Washington Post Outlook section proposed that we ought to toss the Congressional Budget Office (CBO). I couldn’t agree more. This post is a commentary intended to amplify the argument.
Jamie begins with:
”The forecasts of the Congressional Budget Office are holy writ in Washington, and they fuel scary headlines about an impending federal debt disaster. This is a shame, because the CBO’s projections are indefensible, internally inconsistent and economically impossible.”